Zurich Financial Services Group said its subsidiary, Zurich Spain, has acquired a 50 percent stake in Can Soluciones Integrales S.A. from Caja de Ahorros y Monte de Piedad de Navarra, a financial banking institution in the Navarra, Spain region.
The deal is worth a total of $134 million involving a direct payment of $71 million and earn-out payments of up to $63 million depending on future performance, Zurich said.
As part of the agreement, the jointly owned company will enter into an exclusive agreement with Caja Navarra for the distribution of general insurance products. The Zurich, Switzerland-based insurer said the move reflects its strategy to expand its footprint in Spain.
The deal is subject to regulatory approval.
Zurich said this is the seventh acquisition of European general insurance units within the last 16 months.
The other firms that have been acquired are:
o United Kingdom: Endsleigh Limited, an insurance brokerage, in 2006.
o Spain: ACC Seguros y Reaseguros de Da?os, S.A., a surety writer, in 2006.
o Russia: OOO NASTA Insurance Company, a personal lines insurer, in 2007.
o Ireland: Wrightway Underwriting Limited, an independent underwriting agency, in 2007.
o Germany: Real Garant Versicherung AG, a provider of car warranty insurance in Germany, in 2007.
o Turkey: TEB Sigorta A.S., a general insurance company. Completion of the deal was announced yesterday.
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