Elektra acquires Cigna, creates Seguros Azteca

Mexican retailer Grupo Elektra (NYSE: EKT) has acquired local insurer Cigna Seguros for an undisclosed sum, the group said in a statement. Elektra has purchased Cigna's license to operate in the life, accident and health insurance segments, Elektra said, adding that the transaction excludes any part of the insurer's portfolio currently in force or inherent liabilities. The new company will be renamed Seguros Azteca offering a variety of insurance products as of start-2004 including life insurance related to consumer loans granted by Banco Azteca, individual life insurance and funeral expenses, the statement added. According to Grupo Elektra managing director Alfredo Honsberg, this acquisition represents an excellent opportunity for Grupo Elektra and its financial division because of the low cost of starting this venture and its potential growth going forward. "We plan to start offering policies throughout Grupo Elektra stores and Banco Azteca's branches. Furthermore, their excellent payment collection scheme will help us position our leading insurance products and preserve a healthy life insurance portfolio," Honsberg added. Seguros Azteca will be a wholly owned unrestricted subsidiary of Grupo Elektra, one of Latin America's leading retailers. The Elektra empire is controlled by Ricardo Salinas and family, who hold a 70% stake.