SulAmérica looks to M&A for growth, has close to US$500mn for deal-making

Brazil's leading non-bank controlled insurer, SulAmérica, is looking to continue its future expansion via an M&A strategy and has 800mn reais (US$497mn) in cash to pursue that path, local business news portal Brasil Econômico reported. "The company's objective is to have resources at hand to take advantage of opportunities that may come up," Arthur Farme d'Amoed Neto, SulAmérica's corporate and media relations VP, was quoted as saying by the daily, adding that the company has "no interest in expanding organically." D'Amoed noted that the insurer could either acquire an insurance company or business portfolios, or sign distribution agreements. A first glimpse of SulAmérica's new strategy was given in December last year, when the company purchased dental care provider Dental PLAN for 28.5mn reais. In May last year, it also acquired the stake in health insurer Brasilsaúde that was held by federally controlled Banco do Brasil, to take full control of that company. SulAmérica booked 102mn reais in recurring net income in 1Q11, up 19.4% on the same quarter in 2010.