Spain’s Mutua Madrileña insurance company has purchased 45% of Colombia’s Seguros del Estado, a private insurance company operating in Colombia. Seguros del Estado claims the #2 ranking in property and casualty insurance in Colombia. Mutua Madrileña also acquired an option to take control of the company in 4 years.
This purchase marks Mutua Madrileña’s second acquisition in South America after purchasing BCI Seguros in Chile. These acquisitions are consistent with the company’s 2018-2020 Strategic Plan as laid out by chairman Ignacio Garralda (above). Both boards of directors have approved the transaction, and it is expected to close early next year, after regulatory approvals.
Colombia’s insurance market has had strong growth in the last 5 years and is one of the most developed market in Latin America, driven by auto insurance and SOAT (mandatory driver liability coverage). According to Mutua Madrileña, Colombia is expecting a growing insurance sector with property & casualty growth estimated at 7%, the strongest in Latin America.
“With the entry of Mutual Madrileña, our company has gained a reference partner with almost 90 years of experience. Together we will seek to consolidate our position as the market leader in the sector and at the same time, reach the highest standard of service and protection for Colombians,” says Jorge Mora, president of Seguros del Estado S.A.
“The Seguros del Estado acquisition meets all the criterio we have set for continuing our international expansion, entering a stable market with high development prospects, hand in hand with a local partner with an excellent corporate reputation, and with a company at the top of the insurance sector in Colombia,” said Mutua Madrileña Chairman Ignacio Garralda.
Once the closing of the operation is completed, Jorge Mora will maintain the presidency of Seguros del Estado, and Mutua Madrileña will appoint two of the 5 directors of the company and will occupy the vice presidency. On the other hand, the Spanish insurer will also designate the Director of Management Control and the Director of Strategic Planning, both present at the company’s Steering Committee.