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.
