Royal & SunAlliance to acquire Chilean insurance company

Royal & Sun Alliance Insurance Group plc recently acquired Chile’s leading general insurance business Compaia de Seguros Generales Cruz del Sur S.A. and its Argentinean sister company La Repblica Compaa Argentina de Seguros Generales S.A. for $119m (68m) payable in cash.
The partnership between Cruz del Sur and Royal & SunAlliance will result in the creation of a Chilean general insurance company with a 22% market share.
The transaction is subject to regulatory approvals and other conditions.
Cruz del Sur’s 2004 gross written premiums were $195m (102m), its gross assets were $166m (86m) and its combined ratio was 95.8%.
“We have developed a strong Latin American portfolio which has been built through a combination of organic growth and acquisitions,” Simon Lee, chief executive of Royal & SunAlliance international businesses, says. “This deal positions us well for growth and generates significant operational synergies. In Chile it creates a powerful and dynamic market leader whilst in Argentina the transaction further extends our geographic reach.”