Credicorp, Peru’s largest
financial conglomerate, is to acquire American Life Insurance
Company’s (Alico) 20.1% stake in life insurer Pacifico
Seguros.
Credicorp’s wholly-owned
subsidiary Grupo Credito is to acquire Alico’s 38% stake in general
insurer Pacifico Vida, for a total consideration of
$170m.
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On completion of the deal,
which is the biggest executed in Peru’s insurance market yet,
Credicorp and Grupo Credito will jointly own 96.1% of Pacifico
Seguros and 100% of Pacifico Vida.
Alico was acquired by US
insurer MetLife from American International Group earlier this year
for $15.5bn.
Pacifico Vida, which
according to Credicorp is Peru’s leading life insurer, reported
premium income of $57.6m in the three months to June 2010, up 26%
compared with the same quarter in 2009.
Pacifico Vida produced net
earnings of $10.5m in the second quarter of 2010, up from $7.8m a
year earlier.
At present, Credicorp’s major
profit contributor is its 94%-owned banking subsidiary Banco de
Credito del Peru. At the end of May 2010, Credicorp reported that
the bank had a market share of 30.8% based on advances compared
with about 21% of its closest rival.
