AXA announced that it has reached an agreement with ING for the acquisition of 100% of the share capital of its Mexican insurance subsidiary ING Seguros, for a consideration of USD 1.5 bln (EUR 1.0 bln).
ING Seguros is the third largest Mexican insurer (12% total market share, 5.5 mln clients), with leading positions in key markets such as Motor (2nd largest player with a 17% market share) and Health (2nd largest player with a 19% market share).
ING Seguros is also active on the Life market with a 6% market share. ING Seguros’ franchise is supported by an extensive proprietary distribution network of 7,500 agents, of which 1,500 specialized life agents.
In 2007, ING Seguros is expected to post revenues of USD 1.9 bln, a combined ratio of ca. 105%, a net income at break even and shareholders’ equity of USD 0.9 bln. The company’s top line has been relatively stable over the last years, as it was gradually withdrawing from some non profitable large P&C business lines, while facing softening conditions in the motor business.
AXA intends to accelerate and complete the initiated turnaround of ING Seguros by dedicating seasoned management capabilities and leveraging the Group’s global platforms and expertise, notably in IT and reinsurance.
Upon completion of the transaction, ING Seguros will be integrated to AXA’s Mediterranean Region unit and benefit from its know-how in underwriting, claims management, client segmentation, service and brand management.
Combining its strong franchise and AXA’s expertise, ING Seguros should be in a position to benefit from the strong growth prospects of the Mexican market, an improved pricing environment and the emergence of under-developed segments (e.g. Household insurance), while extending its product range, particularly in the savings market.
“This acquisition gives us a leading position in a large growth market on attractive conditions, as we believe we can leverage our know-how to restore ING Seguros’ growth and profitability”, said Henri de Castries, Chairman of AXA’s Management Board.
“Together with our recent transactions in Asia,
In 2006, the Mexican insurance market recorded a total premium volume of USD 15.1 bln, life insurance accounting for 45% of this volume.
ING Seguros was established in 2001 following ING acquisition of Seguros Comercial
