Swiss insurer continues down acquisition trail.
Zurich has continued on the acquisition trail announcing plans to buy two Brazilian insurers for up to £120m.
The company said it would buy an 87.35% stake of Companhia de Seguros Minas Brasil, a BOVESPA-listed company, from Banco Mercantil and two private investors. It has also signed an agreement to acquire 100% of Minas Brasil Vida e Previdência from Banco Mercantil.
The move echoes the Swiss insurer’s announcement last week that it would strengthen its bancassurance business by taking a 50% stake for £700m in the life insurance, pension and general insurance operations of the fourth largest bank in Spain, Banco Sabadell SA – an announcement that came one day after Zurich withdrew from the auction for Royal Bank of Scotland’s insurance business.
The company’s latest plans will see it pay around £89m for both acquisitions and an additional £15m for the bancassurance agreement, plus an extra £15m depending on future performance.
Zurich will secure 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 transaction is expected to close by the fourth quarter of 2008.
