Constellation Insurance Holdings' Chilean subsidiary, Ohio National Seguros de Vida S.A., has announced that it is acquiring Zurich Insurance Group's annuity portfolio in Chile. The portfolio has approximately US$2.6 billion in reserves and will help Constellation to expand its market position in the country.
Ohio National Seguros de Vida S.A. has been providing life insurance solutions in Chile since 1993 and holds local credit ratings of “AA” from both ICR and Fitch Chile.
With this acquisition, the company's total local reserves will increase to approximately US$4 billion.
This acquisition is in line with Constellation's growth strategy to expand its operations through organic growth and inorganic investments.
The company's Latin American operations are becoming an integral part of the organization, in addition to its US life insurance and annuity segments.
David Azzarito, Senior Vice President for Latin America and Board President of Ohio National Seguros de Vida S.A., believes that this acquisition will strengthen the company financially and help it to better serve its policyholders.
The transaction is subject to regulatory approvals, and BNP Paribas Securities Corp. served as financial advisor to Constellation Insurance Inc. on the transaction.
Zurich Insurance Group is a leading multi-line insurer with a presence in over 200 countries and territories. It entered the Chilean market in 1991 after acquiring La Chilena Consolidada, a local insurance company founded in 1853.
The sale of its annuity portfolio in Chile is part of Zurich's strategy to optimize its portfolio and focus on profitable growth in its core markets.
Constellation Insurance Holdings is backed by institutional investors CDPQ and Ontario Teachers’ Pension Plan Board (Ontario Teachers’).
The company is committed to providing comprehensive insurance solutions to individuals, families, and businesses.
With this acquisition, it is expected to strengthen its market position in Chile and further its growth strategy in the Latin American market.