Liberty Mutual Insurance Group, one of the largest property and casualty insurers in the world, today announced expansion of its Latin American operations by entering Ecuador's insurance marketplace following the acquisitions of Panamericana de Seguros del Ecuador S.A. and Cervantes S.A. Compania de Seguros y Reaseguros, two insurers offering primarily auto insurance, other property and casualty products as well as group life and health insurance. The two companies' combined property and casualty market share will position Liberty Mutual as the fifth largest Non-Life insurer in Ecuador.
The parties did not disclose the financial terms of the agreements.
Panamericana, which began operations in 1973, is the 11th largest property and casualty insurer in Ecuador with $48 million in gross written premium in 2011. The company distributes its products through agents and brokers. Panamericana is headquartered in Quito and has operations in Guayaquil, Cuenca and Manta.
Cervantes was owned by Banco Internacional and is the 15th largest property and casualty insurer in Ecuador with $25 million in gross written premium in 2011. Headquartered in Quito, Cervantes began operations in 1993. The company primarily distributes its products through the agent and banking channels.
''With the additions of Panamericana and Cervantes, we enter Ecuador's dynamic and growing insurance market from a position of strength,''said David H. Long, Liberty Mutual Insurance Group president and chief executive officer.''Both companies have complementary distribution channels and excellent reputations. We look forward to offering Ecuador's consumers the products and services they desire and choices in how they wish to purchase them.''
Liberty Mutual Insurance Group reported net written premium as of December 31, 2011 of $31.2 billion, of which $8.2 billion, or 26 percent, came from its International operations.
The acquisitions in Ecuador add to Liberty Mutual's International local business operations that sell to individuals and businesses in three geographic regions: Latin America, including Venezuela, Brazil, Colombia, Argentina and Chile; Europe, including Spain, Portugal, Turkey, Poland, Ireland and Russia; and, Asia, including Thailand, Singapore, India, China (including Hong Kong) and Vietnam.
Private passenger automobile insurance is the single largest line of business for Liberty Mutual's International operations, which insures more than 5.9 million autos worldwide.
Liberty Mutual has been the number one insurer in Venezuela every year since 2002. The company is also the number two property and casualty company in Colombia, and is among the top 10 property and casualty companies in Argentina, Brazil and Chile.