Zurich Expands in Brazil, Will Buy Two Companies
Swiss insurer Zurich Financial Services announced that it is purchasing two Brazilian insurance companies, paying up to $241 million and adding to a string of recent smaller acquisitions.
Zurich plans to buy 87.35 percent of Companhia de Seguros Minas Brasil and 100 percent of Minas Brasil Seguradora Vida e Previdencia from Banco Mercantil do Brasil.
Zurich will pay about $179 million for the two acquisitions, plus $31 million for the bancassurance agreement and an extra $31 million that is linked to future performance.
The Swiss company had already strengthened its position in bancassurance, where an insurer uses a bank's branch network to sell policies, with a $1.4 billion offer for Banco Sabadell's insurance business last week.
Zurich's Brazil unit will also have a long-term exclusive bancassurance agreement with Banco Mercantil for the distribution of life and general insurance products of Zurich Brasil and the acquired companies.
Zurich's Brazil unit will also have a long-term exclusive bancassurance agreement with Banco Mercantil for the distribution of life and general insurance products of Zurich Brasil and the acquired companies.
The deal is expected to close by the fourth quarter of 2008.
Published on July 18, 2008
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