Sabadell, Mapfre unveil partnership in Mexico

Tuesday, November 29, 2016

Spain's Banco Sabadell and insurance group Mapfre are partnering up in Mexico to make Mapfre México's insurance plans and financial services from Sabadell's Mexico unit available to the clients of both operations.

In a press conference Monday, the firms announced the deal and called on investors to act wisely amid the volatility and uncertainty surrounding the election of US president-elect Donald Trump, touting Mexico's ability to overcome any impact with its solid macroeconomic fundamentals.

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In a press release, Mapfre México cited the fact that only 4% of small businesses are well insured and a high percentage of large firms lack comprehensive coverage as motivation for their involvement in the deal.

While both subsidiaries have been operating in Mexico for some 25 years, Sabadell only began offering personal banking services in January and has surpassed the bank's own expectations.

Speaking to El Financiero, Fernando Pérez-Hickman, managing director of Banco Sabadell América, said the bank has grown quickly, building a loan book of 30bn pesos (US$1.5bn) with 150 companies - lending 23.5bn pesos in the first half of 2016 alone.

Mapfre México's regional director Jesús Martínez said Banco Sabadell would be offering their insurance policies through a range of plans, looking to provide "differing products, specially designed for the bank, as well as the use of exclusive tools."

In the press conference, the firms reiterated their long-term commitment and vision for Mexico in these uncertain times.

"There is volatility in the markets, threats that we still do not know if they will materialize or not. As such, we must be very prudent with our plans, which means not anticipating things that have yet to happen," said Martínez.

"There are positions born from the new situation in the United States, but we shouldn't be excessively pessimistic ... The reality of the economy in Mexico is that its fundamentals are good, inflation is contained ... Nor is there any reason to think that there will be anything excessively worrisome happening," he added.