AXA has announced that it has entered into an agreement with Grupo Mercantil Colpatria to acquire a 51% stake in its composite insurance operations in Colombia for a total consideration of COP 672 billion (or €259 million). AXA expects to consolidate the acquired operations within its Mediterranean & Latin American Region.
Colpatria Seguros is the #4 insurance player in Colombia (7% market share), with operations in both Property & Casualty and Life & Savings. It is a leader in the segments of compulsory Motor Third Party Liability (#3 with 15% market share) and Workers Compensation (#4 with 14% market share). Its nationwide coverage and diversified distribution networks, with multi-tied agents representing approximately 40% of premiums, have supported its strong growth.
The transaction will allow AXA to enter the attractive Colombian market and benefit from its strong growth prospects through developed and profitable operations in a joint-venture with a well-established local partner. Colpatria Seguros will benefit from AXA’s strong know-how to accelerate further its development and leverage its competitive advantages in the Colombian market.
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