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Aetna International And Grupo Financiero Bancomer To Sell Seguros Monterrey Aetna And Fianzas Monterrey Aetna Joint Ventures

HARTFORD, Conn., December 6, 1999 — Aetna International Inc., a subsidiary of Aetna (NYSE: ΑET), and Grupo Financiero Bancomer, (GFB) Mexico’s second-largest banking group, announced today that they have entered into a definitive agreement to sell two of their Mexican joint ventures, Seguros Monterrey Aetna, S.A., and Fianzas Monterrey Aetna, S.A., to New York Life International, Inc., a subsidiary of New York Life, Inc. for approximately $570 million.1 Aetna International, which owns 49 percent of each company, will receive approximately $279.3 million in connection with the sale, and GFB will receive approximately $290.7 million or the remaining 51 percent of the purchase price. The sale, which is expected to close in first quarter 2000, is subject to customary approvals on behalf of Mexican regulators.

Seguros Monterrey Aetna, based in Mexico City, sells both personal and commercial life and property-casualty coverage through a network of insurance agents and is the third-largest insurer in Mexico. Fianzas Monterrey Aetna, based in Mexico City, is the second-largest bonding and surety company in Mexico.

"These divestitures will allow us to focus on our remaining joint ventures with GFB, which serve the promising bancassurance, pension and annuity markets," said Frederick C. Copeland Jr., president of Aetna International. "In addition, as with our recent sale of Aetna Canada, this allows us to concentrate on specific markets and businesses whose growth and return characteristics better align with our strategy."
 
Aetna International’s partnership companies with GFB include the following:

  • Seguros Bancomer, the leader in the Mexican bancassurance market, with a 36 percent share. Seguros Bancomer sells individual auto, homeowners and life insurance, group life and health through GFB’s network of bank branches, as well as through direct marketing.
     
  • Afore Bancomer, the number one pension company, with 23 percent of total market assets under management.
  • Pensiones Bancomer, the leader in the Mexican annuity market based on assets under management, with a 21 percent market share.

"In addition to our joint ventures in Mexico, Aetna International has leadership positions in fast-growing emerging markets, particularly other Latin American regions and Asia, with a focus on health and financial services products," Copeland noted. Consistent with this goal, Aetna recently announced its plans to acquire a stake in the Heiwa Life Insurance Company of Japan.

Founded in 1932, Grupo Financiero Bancomer is a leading banking group in Mexico, with assets of US$27 billion. The company has a network of more than 1,300 branches and 25,000 employees.

Aetna International offers health, life insurance and financial services products to 16 million customers in 16 countries worldwide. Aetna International is the number one private healthcare provider in Brazil, Argentina and Chile and a leading pension provider in Chile, Mexico and Peru. In Asia, it is one of the top regional life insurers, with strong operations in Taiwan, Hong Kong, and Malaysia and start-up operations in China, Thailand, Indonesia and the Philippines.

Aetna is a leading provider of health, retirement and financial services benefits. Through its three core businesses, Aetna U.S. Healthcare, Aetna Financial Services and Aetna International, the company provides nearly 40 million people worldwide with quality products, services and information to help them manage best what matters most: their health and financial well-being.

1 Subject to some customary closing adjustments.

For more information about Aetna Inc., please visit the company's website at www.aetna.com.