(Image source: MAPFRE.)
MAPFRE (Madrid), already the largest insurance company in Latin America, has reached an agreement with the Mexican life insurance carrier Insignia Life, to acquire 94 percent of shares and to start jointly developing a range of life insurance products that will boost the growth of this business in the Mexican market. MAPFRE characterizes the investment in Insignia Life as an example of its commitment to the country, as well as the confidence it has in the Mexican insurance market. The cost of the acquisition is equivalent to 1.6 billion Mexican pesos, or about €86 million or USD$95 million, at current exchange rates.
Jesús Martínez Castellanos, CEO for LATAM, MAPFRE.
Operating since 2008, Insignia Life is a technology-focused life insurer currently serving two million policyholders. Its portfolio is currently valued at approximately $116 million. The company will continue to operate as an independent brand following the acquisition by MAPFRE. The company’s leadership team, headed by Chairman Isaac Zetune and General Manager Antonio Fernández, will continue to manage Insignia Life post-merger. These executives will also continue to hold 6 percent of shares in the company.
“For MAPFRE, this operation is the demonstration of our full confidence in the Mexican market, where we have been present for over 30 years, and where we aspire to play a greater role in the future and continue to develop new distribution channels to provide our customers with the best service,” comments Jesús Martínez Castellanos, CEO for LATAM, MAPFRE. “Moreover, this investment is part of MAPFRE’s strategy in Latin America to achieve further growth in the region’s Life portfolio.”
Expanding and Becoming More Powerful
“Insignia Life, alongside MAPFRE, will expand and become more powerful, with a solid financial backing that will allow it to strengthen its growth and broaden its coverage and territorial presence,” comments Isaac Zetune, Chairman, Insignia Life. “Our channel of promoters and agents has proven to be the road to success, and we will continue to underpin growth in the same way, meaning we will continue to be by agents for agents. We are determined to have a high performance and work with the best practices and technologies that exist, meeting our obligations without any excuses.”
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