ZURICH--(BUSINESS WIRE)--ACE Limited (NYSE: ACE) announced today that it has reached a definitive agreement to acquire Fianzas Monterrey in Mexico from New York Life Insurance Company for approximately $285 million in cash.
Established in 1943 and headquartered in Mexico City, Fianzas Monterrey is Mexico’s second-largest surety lines company and the third largest in Latin America, offering administrative performance bonds primarily to clients in the construction and industrial sectors. The company has an extensive presence throughout Mexico, including three regional offices and 25 branch offices, and distributes its products through a network of nearly 600 independent agents and brokers.
“The acquisition of Fianzas Monterrey will allow ACE to diversify its business in Mexico with a highly successful surety business that is recognized for its industry-leading underwriting performance and impressive management team,” said Evan Greenberg, Chairman & Chief Executive Officer, ACE Limited. “As part of our specialty P&C business, surety is a growth area for ACE, and Mexico is an attractive market with a strong economic outlook.”
ACE’s business in Mexico currently includes commercial property and casualty, accident and health, and life insurance operations. The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to be completed during the first quarter of 2013.
The ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 53 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com.
Cautionary Statement Regarding Forward-Looking Statements:
All forward-looking statements made in this press release, related to the acquisition of Fianzas Monterrey or otherwise, reflect ACE’s current views with respect to future events, business transactions and business performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, ACE’s forward-looking statements related to Fianzas Monterrey and the anticipated acquisition could prove incorrect if the transaction were to not close, if Fianzas Monterrey and its subsidiaries were to perform differently than currently expected by ACE or if anticipated expense-related efficiencies are not realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.