ACE Limited announced the acquisition of ABA Seguros in Mexico from Ally Financial Inc. for approximately $865 million in cash.
Established in 1958, ABA Seguros is Mexico’s sixth-largest property/casualty insurer and provides auto, homeowners and small business coverages.
Based in Monterrey, the company has over 30 sales offices throughout Mexico and distributes its products through a network of nearly 2,000 independent agents as well as through auto dealerships, banks and direct channels.
“ABA Seguros is a highly regarded franchise in the Mexican P&C market with a terrific brand and an impressive and profitable track record,” said Evan Greenberg, chairman and chief executive officer, ACE Limited. “ACE has been operating in Mexico for many years through ACE Seguros, a business with an industrial commercial and personal accident focus. Following our announcement last month to acquire Fianzas Monterrey, the second largest surety writer in Mexico, and now ABA, a major personal lines and agency company, we are extremely well positioned to take advantage of the many growth opportunities we believe will occur in this important country over the next decade and beyond. We expect the acquisition of ABA Seguros to be accretive to earnings in the first year and to meet or exceed our company’s long-term return on equity target by the third year.”
The transaction is expected to be completed during the first half of 2013 subject to regulatory approvals.
Source: ACE Group
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