Snapshot: Peru's La Positiva

Twenty-one insurers compete in Peru, among them local group La Positiva Seguros y Reaseguros.

The fourth biggest player in the country, La Positiva is due to be bought by Portugal's largest insurer, Fidelidade.

This week La Positiva agreed to sell a 51% stake to Fidelidade, which currently offers life and P&C products in Europe, Asia and Africa. Fidelidade holds assets of about 15.9bn euros (US$19.7bn) and the move marks its first foray into Latin America, the firms said in a joint statement. Hong Kong-based investment group Fosun International, which holds assets of about US$75bn, is the biggest shareholder in Fidelidade. Fosun invests in sectors including banking, insurance, healthcare, pharmaceuticals and tourism.

Regulatory approval of the sale - which will take the form of a public share offer - as well as other authorizations, are pending.

La Positiva is a relative minnow. In Peru, the group, which has been operating in the local market for more than 80 years, held assets of 5.19bn soles (US$1.59bn) – corresponding to its P&C and life units – at the end of January, according to data from sector watchdog SBS.

La Positiva operates in the P&C, life, and health insurance segments and has more than 4.3mn clients. As well as Peru, the insurer is present in Bolivia, Paraguay and Nicaragua.

On the transaction, La Positiva president Andreas Von Wedemeyer said: "We're proud of the interest that Fidelidade has shown in La Positiva, as it demonstrates the important growth experienced and profits generated by the group over its 80 years in operation, which has permitted us to be one of the main firms in the Peruvian insurance market."

Jorge Magalhães Correia, president of Fidelidade, said: "This marks another step in Fidelidade's international expansion strategy which is underway and which leverages Peru's steadily growing economy. This marks the first step of our expansion in Latin America."

LA POSITIVA (P&C) AT A GLANCE

Assets (at end-January): 1.50bn soles

Net earned premiums (for January): 50.9mn soles

Net incurred claims (for January): 18.3mn soles

Net income (for January): 9.33mn soles.

Market share by net premiums: 10.9%

LA POSITIVA VIDA AT A GLANCE

Assets (at end-January): 3.69bn soles

Net earned premiums (for January): 24.2mn soles

Net incurred claims (for January): 22.1mn soles

Net income (for January): 5.16mn soles.

Market share by net premiums: 8.53%