Mapfre has announced that it is taking full control of the Brazilian non-life and life insurance business BB Mapfre, a strategic venture created with Banco do Brasil.
The deal, which will cost Mapfre €546 million, will see the company acquire the remaining 50 per cent of BB Mapfre’s non-life business and 75 per cent of the life business. BB Mapfre will continue selling life and agriculture insurance via the bank channel, as well as mortgage life insurance.
The agreement looks to facilitate both a redefinition of the businesses developed by BB Mapfre and progress toward a more simple and efficient governance structure in those businesses that are jointly managed. It is hoped that this will help to reduce internal costs, as well as improving the productivity, and therefore profitability, of the business.
“This new configuration of the agreement will allow us to renew our alliance with Banco do Brasil, enlarge Mapfre’s business in the country, maintain exclusivity for our products in the Banco do Brasil channel, and organise our local businesses in a much simpler and more efficient manner,” said Antonio Huertas, Chairman and CEO of Mapfre. “This agreement is clear proof of our complete confidence in Brazil’s economic development, and our commitment to both the country and our future with our partner.”