Chilean Consolidated, member of the Zurich Group, made the acquisition of the EuroAmerica insurance business, excluding annuities and the General Manager (AGF).
The operation, which was the subject of analysis and approval by the National Economic Prosecutor and the Commission for the Financial Market, amounted to 138 million dollars.
With the purchase made, the company increases its coefficient of market in the individual life insurance to 18%; in the group insurance market by 22%; and also has assets under management of the General Manager (AGF), for more than $ 1,600 million.
The general director of Chilena Consolidated, Jos Manuel Camposano, says that they finally ended an operation for which they worked for a long time. "This is part of a strategic plan that we proposed three years ago." And adds: "We want to be the leader of the Chilean market and our aspiration is to double the size of the company."
-What is the goal of acquiring Euroamrica's business?
"This aims to double the size of companies in Zurich in Chile and this aspiration has organic and inorganic growth initiatives. In terms of annuities there is organic growth, in fact we bend our market share in the asset management business and in the one of the AGF ah we went for the inorganic growth, in all our businesses we are implementing initiatives to duplicate and we make a great progress ".
-What is reflected or progress?
"In 2015, when we started with the idea, the total life and general insurance premium of Zurich in Chile was $ 500 million. This year we will finish with $ 1,000 million and the next plan is $ 1,300 in five years, but we pass three years ago, which indicates that we are on the right track ".
– What does the acquisition for EuroAmerica customers mean?
"It means that since yesterday all customers of EuroAmerica's businesses, such as the insurance company and AGF, have become Grupo Zurich, Chilena Consolidada".
"With this acquisition we take control of 500 thousand clients, of which 40 thousand are of individual life, 400 thousand of collective insurance and 17 thousand are of the mutual fund."
-What about the workers of EuroAmerica? Will there be a reduction?
"Everyone has become Chilean Consolidated employees, there is no dismissal of people, we have sought a model of integration, when buying companies, which bring 550 people who need our long-term capabilities."
– Do you want to acquire the entire business, with the company included?
"It was part of the negotiations and EuroAmerica had the interest to remain active in the business of annuities and there is a strategic problem."
– What do you mean?
"When you buy a complete company, it comes to an integration process that produces great stress in organizations over a long period of time, because there are two people for all positions and this whole integration process is coming. We are applying an integration model where that does not happen, because only the people who are compelled to come. "
– How is the operation financed?
"There is an increase in capital, the funds are already there, the capital has increased for the life insurance company of Chilena Consolidated and with that the operation pays."
– How much was this increase in capital?
"The capital increase was more, because there are also integration costs, it was finally 180 million dollars, but this increase has to do with different businesses we are growing, which are businesses, people, general insurances, and in annuities, where the increase of a market share requires capital increase. "
"Zurich is also investing in other Latin American countries, so trust is not only in Chile, but throughout Latin America."
JOS MANUEL CAMPOSANO
GENERAL MANAGEMENT OF CONSOLIDATED MANAGEMENT