Unibanco: Phenix acquisition to up profits by US$1mn-1.7mn

The acquisition of Brazilian insurer Phenix Seguradora by Brazil's Unibanco AIG Seguros & Previdencia will contribute between 3mn-5mn reais (US$1.02mn -1.71mn) to the insurer's net profits in the fourth quarter, Unibanco's investor relations director Lucas Melo told BNamericas. The sale was completed last week, and operations will be consolidated over the next two to three months, he added. Unibanco-AIG announced the 20mn reais sale last month, and will consolidate Phenix to the company's balance sheet beginning 4Q03. Though the sale is "small," over the long run Unibanco-AIG will reap new revenue by selling more insurance product to the Phenix client base, as well as to new clients on Phenix's distribution network, Melo said. Phenix reported 73mn reais revenue in the first half of the year, compared to Unibanco Seguros' 1bn reais total. "The big potential in Phenix for Unibanco is its extensive distribution channel, large client base, and good penetration of the auto sector," Melo said. About 70% of Phenix revenues derive from auto insurance at previous owner, Italian automaker Fiat's dealerships. Unibanco-AIG profits in the third quarter were down 10% year-on-year, with 57mn reais, the company announced Thursday. Unibanco-AIG is a joint venture between Brazil's third largest private bank Unibanco and US-based insurer AIG.