ACE Ltd. buys Mexican surety business for $285M
NEW YORK (AP) — Property and casualty insurer ACE Ltd. said Wednesday that it reached a deal to buy Mexico's Fianzas Monterrey from New York Life Insurance Co. for about $285 million in cash.
Mexico City-based Fianzas Monterrey was founded in 1943 and is Mexico's second-largest surety lines company, offering administrative performance bonds mainly to construction and industrial clients. The company has three regional offices and 25 branch offices, and distributes its products through nearly 600 independent agents and brokers.
Switzerland-based ACE said the acquisition will help diversify its business in Mexico. It currently has commercial property and casualty, accident and health, and life insurance operations in that country.
Privately held New York Life, which acquired Fianzas Monterrey in 2000, said that while the company is a well-run and profitable business, it falls outside of New York Life's focus on life insurance.
The deal is expected to close during the first quarter of 2013.
ACE shares slipped 11 cents to $74.98 in morning trading.