Liberty Mutual Acquires Colombian Insurer

Boston-based Liberty Mutual Group today announced that its subsidiary Liberty International purchased a controlling interest in Latinoamericana de Seguros SA, a leading provider of property and casualty and life insurance products in Colombia. Liberty International purchased Latinoamericana through a public tender offer on the Bogota stock exchange. Liberty International did not disclose financial terms of the transaction.

The move marks Liberty International's second acquisition in Colombia in less than a year; in 1997, it acquired Skandia Seguros Generales SA. Liberty International has operations in Argentina, Brazil, Colombia, Mexico and Venezuela.

With the addition of Latinoamericana, the company says, the combined operations will form the fifth-largest insurance company in the country controlling approximately 6 percent of the growing market. Latinoamericana provides personal insurance products such as auto, home, and life coverages, as well as commercial insurance products and services. Latinoamericana also maintains a market leadership position in judicial and surety bonds. The company operates a network of 13 branch offices throughout the country, and offers its products through an extensive agency-based distribution system.

"Latinoamericana is the right strategic fit for our existing operations in Colombia due to its diverse personal and commercial insurance product portfolio, management depth, and extensive knowledge of the local market," said James McCarty, chief operating officer of Liberty International Latin America. "Latinoamericana also gives us a doorway into the country's privatized workers compensation system, since it already participates in that business line."