Liberty Mutual says it has entered the insurance marketplace in Ecuador with the purchases of auto insurers Panamericana 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 the fifth-largest non-life insurer in Ecuador. The companies being bought also offer other property and casualty products as well as group life and health insurance.
“With the additions of Panamericana and Cervantes, we enter Ecuador’s dynamic and growing insurance market from a position of strength,” said David H. Long, Liberty Mutual Insurance Group president and chief executive officer. “Both companies have complementary distribution channels and excellent reputations.”
Panamericana began operation sin 1973 and is the 11th largest P&C insurer in Ecuador with $48 million in gross written premium in 2011. The company distributes its products through agents and brokers.
Cervantes was owned by Banco Internacional and is the 15th largest P&C insurer in the Ecuador with $25 million in gross written premium in 2011. The company primarily distributes its products through the agent and banking channels.
The acquisitions in Ecuador add to Liberty Mutual’s international local business operations in three geographic regions: 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 largest line 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 Venezuela every year since 2002. The company is also the number two property and casualty company in Colombia, and is among the top 10 property and casualty companies in Argentina, Brazil and Chile.