Zurich and Santander agree Latin American tie-up

| July 18, 2011 | 0 Comments
Zurich and Santander agree Latin American tie-up

Zurich has signed definitive agreements with Banco Santander to enter into a long-term alliance in Latin America.

Santander has over 5,600 branches in the region and the key terms of the partnership are as follows: a 25-year strategic distribution agreement; acquisition of a 51% stake in established insurance operations in Brazil, Mexico, Chile, Argentina and Uruguay for $1.67 billion, plus performance-based earn-outs payable over 25 years.

The transaction, which should close by the end of the year, is funded primarily from Zurich’s internal resources.

According to the insurer, it will be immediately earnings per share accretive and cash-flow positive.

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Category: Financials, Zurich News

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