Colombian insurer Colseguros has sold its professional risk administrator, or ARP, business to professional risk manager Suratep, local daily El Heraldo reported.
According to the paper, Colseguros sold 52,000 ARP policies to Suratep for an undisclosed amount.
In September 2004 the Colombian banking and insurance regulator Superbancaria modified regulations governing ARPs, making them liable if employers are late in paying their workers' insurance contributions.
Back then ARPs said the new legislation would be detrimental because employers could be dissuaded from making regular payments since the coverage is mandatory.
Suratep is controlled by holding company Inversura, which also owns Colombia's largest insurer Suramericana and investment fund manager Susalud.
Colseguros, a unit of Germany's Allianz (NYSE: AZ), offers life and P&C insurance.