Spanish insurer Mapfre has partnered with the financial advisory firm Abante Asesores to create an independent platform for financial advisory services and products in a bid to expand its asset management business.
Mapfre has taken a 10% stake in Abante through a capital increase as well as the option to acquire a further 10% up to a maximum of 20% within a period of three years.
Through the deal, Mapfre will distribute some of its insurance products and solutions through Abante's financial advisory and life financial planning services. Mapfre said: "Also envisaged is the development of new products focused on providing solutions to the challenges brought about by longevity and the financial uncertainties it provokes."
Joining forces with such a prestigious partner as Abante, who have a long track record in the industry, makes the objective of becoming independent leaders in the sector in the medium-term eminently feasible, enabling us to compete in the distribution of financial products in the same way as any other financial institution or private bank,” Mapfre's chairman & CEO Antonio Huertas
The insurer also said that both companies will work jointly on the design, creation and distribution of traditional, new and alternative financial products, such as venture capital, real estate, debt and others considered attractive to both individuals and institutions.
Antonio Huertas, chairman and CEO of Mapfre, said: "This significant agreement underpins our strategic focus in the asset management world.
"Joining forces with such a prestigious partner as Abante, who have a long track record in the industry, makes the objective of becoming independent leaders in the sector in the medium-term eminently feasible, enabling us to compete in the distribution of financial products in the same way as any other financial institution or private bank."
Santiago Satrústegui, president of Abante, said: "Partnering with Mapfre is an enormous opportunity for Abante, in that it reinforces our capital structure and allows us to invest more and do so better, as well as develop new products that would have been complicated to roll out alone.
"The agreement means that we maintain our independence as far as capital and managing the company is concerned; our identity, our brand and our values represent a clear competitive advantage for Abante and were something we never wanted to concede."
Mapfre is a global insurance company with a worldwide presence. It is the largest Spanish-owned insurer in the world, the third largest insurer in Latin America and is ranked number six in Europe in Non-Life by premium volume. The company expanded into asset management in 2017. The company employs more than 35,000 professionals, and recorded net earnings of €702m on total revenues of €27bn in 2018.