The JV between federally controlled bank Banco do Brasil (BB) and Spanish insurance group Mapfre is beginning to take shape, following Thursday's (Jun 30) announcement that the companies would now start operating in a unified manner.
The JV, to be called Grupo Segurador Banco do Brasil & Mapfre, will be the second largest insurance group in Brazil. The alliance was first announced in May last year, via a 20-year dual holding deal.
The first holding, called BB Mapfre SH1 Participações (SH1), will sell life, real estate and agricultural insurance. BB Seguros has 74.99% of the total capital, with Mapfre holding the reminder.
The second holding, Mapfre BB SH2 Participações (SH2), will sell P&C products - including auto insurance - but excluding those segments covered by SH1. BB Seguros and Mapfre will each have 50% of the total capital in this holding.
"To equalize the desired stake in the two holding companies created as a result of the agreement, BB Seguros paid 333mn reais [US$213mn]," BB said.
The partnership was authorized in advance by insurance regulator Susep, but final approval from the agency, as well as from antitrust regulator Cade, is still pending.