Brazil Insurer Settles for Less

Brazilian insurance carrier Maritima Seguros is selling a 50% stake to Yasuda Seguros, a unit of non-life insurance carrier Sompo Japan Insurance, for about BRL336m in cash, much less than it was originally seeking. Maritima financial director Milton Bellizia told LatinFinance in March that the company was considering selling a roughly 40% stake for about BRL500m. The company wanted to sell a minority stake to a foreign buyer in order to capitalize on the growth it sees in the Brazilian insurance sector. The firm predicts that the insurance sector could go from a size of 3.4% of GDP to perhaps 6.0% in the next 5 years. A foreign partner would bring both capital and know-how to help the Brazilian insurer offer new and more sophisticated products that a maturing economy can support, according to Bellizia. Before the sale, he noted interest from the US, Europe and Asia. JPMorgan advised the target while Mitsubishi UFJ Securities advised the buyer, according to Dealogic. Maritima’s legal counsel was Mattos Filho, Veiga Filho, Marrey e Quiroga Advogados, the company says.