Chile’s Vida Security in US$116mn annuity asset boost

A unit of Chilean financial services player Grupo Security has expanded its footprint in the pensions space.

The company, Vida Security, announced a deal to acquire around US$116mn in assets and US$102mn in annuity reserves corresponding to the annuity portfolio of Spanish giant Mapfre’s local life insurer and the annuity reinsurance portfolio of reinsurer Caja Reaseguradora de Chile, also owned by the Iberian company. 

With the acquisition, pending regulatory approval, Vida Security’s financial assets grow 4.4% and its annuity reserves 6.3%.

Vida Security CEO Alejandro Alzérreca said the deal reflected the company’s confidence in the local market despite the country being buffeted by fallout from the health crisis.

Alzérreca said: “At a time of significant economic contraction, this operation underscores the confidence of Security in the future of the Chilean insurance industry and its important role in the development of the country – especially in times of crisis like we are experiencing now – as well as the company’s permanent commitment to those who trust in it for the protection of their life, their health and their retirement.”

Vida Security currently has a portfolio of around 40,000 pensioners and 600,000 policyholders covered under individual and group insurance policies.

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