ACE Ltd. To Acquire Fianzas Monterrey In Mexico
Bermuda-based ACE Limited announced today [Sept 12] that it has reached a definitive agreement to acquire Fianzas Monterrey in Mexico from New York Life Insurance Company for approximately $285 million in cash.
Established in 1943 and headquartered in Mexico City, Fianzas Monterrey is Mexico’s second-largest surety lines company and the third largest in Latin America, offering administrative performance bonds primarily to clients in the construction and industrial sectors.
The company has an extensive presence throughout Mexico, including three regional offices and 25 branch offices, and distributes its products through a network of nearly 600 independent agents and brokers.
“The acquisition of Fianzas Monterrey will allow ACE to diversify its business in Mexico with a highly successful surety business that is recognized for its industry-leading underwriting performance and impressive management team,” said Evan Greenberg, Chairman & Chief Executive Officer, ACE Limited.
“As part of our specialty P&C business, surety is a growth area for ACE, and Mexico is an attractive market with a strong economic outlook.”
ACE’s business in Mexico currently includes commercial property and casualty, accident and health, and life insurance operations. The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to be completed during the first quarter of 2013.
