Massachusetts Insurance Commissioner Nonnie S. Burnes announced yesterday she had approved the $2.2 billion acquisition of Webster, Mass.-based Commerce Insurance Company by the Spanish insurance company Mapfre, S.A.

The purchase by the Madrid-based European insurance giant was originally announced on Oct. 30, 2007 and Commerce shareholders voted to approve the deal this February. Ms. Burnes' agency held a hearing on the merger May 1.

In addition to Spain, Mapfre has insurance operations in Turkey, the Philippines and throughout Latin America.

The commissioner, in her announcement, noted that Commerce Group is the largest writer of property and casualty insurance in the Commonwealth.

The division said its review of the transaction found that Mapfre's entry does not raise anti-competitive concerns and that Commerce will retain ample capital to meet its obligations to its policyholders.

Ms. Burnes stated that Mapfre has repeatedly committed to maintaining Commerce's current management structure, employees and headquarters in Webster. Commerce is the town's top employer, with 1,900 workers.

After the merger, Mapfre executives indicated they plan to use Commerce as the "foundation for the growth of our insurance business in the U.S." The companies anticipate that the acquisition will be closed in the next couple of months.

Special Reports /

Mapfre Commerce Acquisition Gets Mass. Okay

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