Insurance Group

Suramericana is to acquire RSA’s Latin American operations

Date: 10 Sep 2015 · 00:19

Suramericana is to acquire RSA Insurance Group's operations in Latin America, with a presence spanning Chile, Mexico, Colombia, Uruguay, Brazil and Argentina, consolidating its leading position in the insurance and risk management business
RSA Insurance Group is a multinational quoted insurance group. RSA has core operations in the UK, Scandinavia, Canada, Ireland, and Latin America; and the capability to write business in around 140 countries
As of 2014, RSA's Latin American operations posted total assets of US$ 1.9 billion, net reserves worth US$ 631 million, and total gross written premiums amounting to US$ 1.1 billion
According to Gonzalo Pérez, CEO of Suramericana, this new acquisition “shall create value through the diversification of geographical risk, sharing of best practices and harnessing of synergies, while at the same time allowing developing new markets”

Suramericana, Grupo SURA´s insurance and risk management subsidiary, announces that it has reached a definite agreement to acquire RSA Insurance Group’s operations in Latin America, for a total of GBP 403 million, that represents COP 1,910,750 million (US$ 614 million) for 99.6% of the equity, payable in cash.

RSA’s Latin American operations represent a leading, geographically-diversified P&C franchise within the region, with a presence spanning Chile, Mexico, Colombia, Uruguay, Brazil and Argentina. The aforementioned operations posted total assets of COP 6,181,628 million (US$ 1.9 billion) at year-end 2014; this in addition to net reserves worth COP 1,964,868 million (US$ 631 million), and total gross written premiums amounting to COP 3,362,834 million (US$ 1.1 billion).

With this acquisition, Suramericana will consolidate its position in the Latin American insurance market. It shall become a top player in Chile and Uruguay, and #9 in Argentina. As for Mexico and Brazil, the largest markets in Latin America, the Company shall be entering new market niches offering substantial growth potential, while in Colombia it would be strengthening its existing offering and consolidating its leading position.

“This transaction represents a unique opportunity to expand our presence across the fast-growing Latin American markets. We are certain that this new acquisition shall create value for all our clients, as well as for us in Suramericana, our parent company Grupo SURA and the Organization as a whole, through the diversification of our geographical risk, sharing of best practices and harnessing of synergies, while at the same time allowing us to develop new markets” stated Gonzalo Alberto Pérez, CEO of Suramericana S.A.

Suramericana is well-known for building long term relationships and implementing world-class standards in all countries where present. The Company will consolidate this new acquisition, with the help of RSA’s recognized human talent in the region, while capitalizing Suramericana´s 70 years of experience and expertise in the insurance sector.

Now that it has acquired RSA’s Latin American operations, Suramericana shall be extending its current presence in Colombia, Panamá, Dominican Republic and El Salvador, thereby consolidating its position as one of the most important insurance companies in the region with over 15.6 million clients.

At the same time, Grupo SURA, Suramericana’s parent company, has welcomed this acquisition as part of the organization´s strategy to develop a wider range of financial services within the region. “This transaction is being carried out maintaining the highest corporate governance standards, fulfilling our expectations in terms of corporate reputation, senior management capabilities, and business practices”, stated David Bojanini, CEO of Grupo SURA.