Constellation Insurance subsidiary acquires Zurich annuity business

The Chilean subsidiary of Constellation Insurance Holdings, Ohio National Seguros de Vida SA, announced that it will acquire the life annuity portfolio of Zurich Insurance Group in Chile. The portfolio has approximately US$2.6 billion in reserves and will help Constellation expand its market position in the country.

Ohio National Seguros de Vida SA has provided life insurance solutions in Chile since 1993 and has local credit ratings of “AA” from both ICR and Fitch Chile.

With this acquisition, the company’s total local reserves will increase to approximately $4 billion.

This acquisition is in line with Constellation’s growth strategy to expand its operations through organic growth and inorganic investments.

The company’s Latin American operations are becoming an integral part of the organization, in addition to its US life insurance and annuity segments.

David Azzarito, Senior Vice President for Latin America and Chairman of the Board of Ohio National Seguros de Vida SA, believes this acquisition will strengthen the company financially and help it better serve its policyholders.

The transaction is subject to regulatory approvals and BNP Paribas Securities Corp. acted as financial advisor to Constellation Insurance Inc. on the transaction.

Zurich Insurance Group is a leading multi-line insurer with a presence in more than 200 countries and territories. It entered the Chilean market in 1991 after acquiring La Chilena Consolidada, a local insurance company founded in 1853.

The sale of its Chilean annuity portfolio is part of Zurich’s strategy to optimize its portfolio and focus on profitable growth in its core markets.

Constellation Insurance Holdings is backed by institutional investors CDPQ and the Ontario Teachers’ Pension Plan Board.

The company is committed to providing comprehensive insurance solutions to individuals, families, and businesses.

With this acquisition, it is expected to strengthen its market position in Chile and advance its growth strategy in the Latin American market.