ING Closes Its Acquisition of Seguros Comercial America
PRNewswire
ATLANTA
Jun 22, 2001
Amsterdam-based ING Group (NYSE: ING), one of the largest integrated financial services organizations in the world, today announced the closing of its acquisition of controlling interest of Seguros Comercial America (SCA). As a result of the acquisition, ING is the largest private insurer in Mexico and the largest international insurer in Latin America.
ING announced on June 4, 2001 that it had signed an agreement with Savia S.A. de C.V. (NYSE: VAI; BMV: SAVIA), to acquire majority ownership in SCA, the largest insurance company in Mexico with a 29 percent market share. ING acquired an additional stake of 45 percent in SCA from Savia, increasing its stake to a total of 87 percent, for approximately USD $791 million.
"Acquiring majority ownership of SCA fulfills our objective to be among the top financial services organizations in Mexico," said Ewald Kist, Chairman of the Executive Board of ING Group. "We are committed to this very attractive market with more than 90 million citizens, therefore, we are optimistic about the growth opportunities. There are strong synergies between SCA and ING's existing operations in Mexico, which will contribute to build a great Mexican business."
Based on sales, SCA currently has an 18 percent market share in life and health insurance and a 39 percent market share for property and casualty insurance. SCA is the fastest growing insurance company with a 10-year average annual growth rate of 23 percent.
SCA has extensive distribution with a network of more than 8,000 agents that reaches all key geographic regions in the country. Mexico's growth and maturity as a financial services market combined with SCA's leadership and ING's wealth of knowledge in integrated financial services, positions the company for strong future growth.
In Mexico, ING also operates a bancassurance joint venture with Banco Bital, one of the largest Mexican retail banks, and has acquired full ownership of Afore Bital, one of Mexico's fastest growing pension funds.
ING also stated that it will observe the legitimate interests of the remaining shareholders of SCA in accordance with Mexican law.
ING Mexico is part of Atlanta-based ING Americas, ING's headquarters for North and South America. ING Americas has business operations in the United States, Canada, Mexico, Argentina, Brazil, Chile, Colombia, Peru, the Netherlands Antilles, as well as reinsurance operations in Bermuda, and Ireland. ING Americas offers a comprehensive array of products and services, including life, health and property & casualty insurance; fixed and variable annuities; reinsurance; guaranteed investment contracts and other institutional investment advisory services; defined contribution plans; and mutual funds. To date, ING Americas and its affiliates have $163 billion in assets under management. ING Americas' parent company, Amsterdam-based ING Group, is one of the largest integrated financial services organizations in the world with $453 billion of assets under management.
CONTACT: Dana E. Ripley of ING Group, 770-980-3317, or cell,
404-202-6679
SOURCE: ING Group
Contact: Dana E. Ripley of ING Group, 770-980-3317, or cell,
404-202-6679