Spanish insurance firm Mutua Madrileña has taken a 45% stake in the Colombian insurer Seguros del Estado in a bid to continue expanding across LatAm.
The deal also envisages a possible increase in the stake held by Mutua in Seguros del Estado from the fourth year, taking therefore a control position in the Colombian insurer.
Seguros del Estado is a privately-owned business with a 11% market share in Colombia that had an insurance premiums volume of €359m as of the end of 2018.
The acquisition enables Mutua to further expand internationally, which is one of the key business development projects the company highlights in its 2018-2020 Strategic Plan.
The operation, which has been already approved by the two insurers' board of directors, is expected to formalise throughout the first months of next year after receiving all regulatory approvals.
Mutua had already debuted in Latin America's insurance business in 2015, when it took a 40% stake in Chilean insurance companies BCI Seguros Generales, BCI Seguros Vida and Zenit Seguros for €209m.
Ignacio Garralda, president of the Mutua Madrileña Group, said: "This operation meets all criteria we have established to continue our global expansion, given we are entering a stable market with high growth expectations like Colombia in partnership with a local player, which has excelent corporate reputation and ranks in the first places of the national insurance business."
Jorge Mora, president of Seguros del Estado, will keep his role after the operation is complete. By its part Mutua, will appoint two of the company's five directors and Mirenchu Villa, deputy general director of International and Holdings at Mutua Madrileña, will be appointed vice president, a responsability that she also holds at the Chilean insurer BCI Seguros.