Liberty Mutual says it has entered the insurancemarketplace in Ecuador with the purchases of auto insurersPanamericana de Seguros del Ecuador S.A. and Cervantes S.A.Compania de Seguros y Reaseguros.

Financial terms were not disclosed.

The Boston-based insurer says the acquisitions will make it thefifth-largest non-life insurer in Ecuador. The companies beingbought also offer other property and casualty products as well asgroup life and health insurance.

“With the additions of Panamericana and Cervantes, we enterEcuador's dynamic and growing insurance market from a position ofstrength,” said David H. Long, Liberty Mutual Insurance Grouppresident and chief executive officer. “Both companies havecomplementary distribution channels and excellent reputations.”

Panamericana began operation sin 1973 and is the 11thlargest P&C insurer in Ecuador with $48 million in grosswritten premium in 2011. The company distributes its productsthrough agents and brokers.

Cervantes was owned by Banco Internacional and is the 15thlargest P&C insurer in the Ecuador with $25 million ingross written premium in 2011. The company primarilydistributes its products through the agent and bankingchannels.

The acquisitions in Ecuador add to Liberty Mutual'sinternational local business operations in three geographicregions: Latin America, including Venezuela, Brazil, Colombia,Argentina and Chile; Europe, including Spain, Portugal, Turkey,Poland, Ireland and Russia; and, Asia, including Thailand,Singapore, India, China (including Hong Kong) and Vietnam.

Private passenger automobile insurance is the single largestline of business for Liberty Mutual's International operations,which insures more than 5.9 million autos worldwide.

Liberty Mutual has been the number one insurer in Venezuelaevery year since 2002. The company is also the number two propertyand casualty company in Colombia, and is among the top 10 propertyand casualty companies in Argentina, Brazil and Chile.