Grupo BTG Pactual SA, the Brazilian loan provider managed by billionaire Andre Esteves, ideas to start off an insurance coverage enterprise in Chile, Peru, Colombia and Mexico.
The initial phase will be to enter Chile’s annuity market place, explained Alejandro Montero, chief executive officer at BTG Pactual Chile, in an interview in Santiago. The firm will have capital of about $ 100 million, and the prepare is to attain $ one billion in assets in a couple of many years, according to Montero.
“We will commence in Chile because it is the most mature industry,” Montero mentioned, including that the next step for the Sao Paulo-based mostly organization would be moving into Peru or Mexico. “Our plan is to develop a Pacific Alliance company,” he mentioned, referring to the Latin American trade bloc that consists of the 4 nations.
BTG is expanding outdoors Brazil to diversify its income and turn out to be a regional electrical power. Annuity revenue in Chile grew almost 45 % last 12 months to $ one.73 billion, in accordance to the nation’s insurance coverage regulator, Superintendencia de Valores y Seguros. New York-based MetLife Inc. is the most significant insurer in Chile based on complete premiums for 2013, followed by Santiago-based Chilena Consolidada Seguros Generales SA and Cia de Seguros de Vida Consorcio Nacional de Seguros SA.
BTG, which announced the acquisition of Santiago-based mostly Celfin Capital SA in February 2012, expects to open a bank in Chile with $ 150 million in capital in August. The new insurance enterprise will be run via a separate unit, Montero mentioned.
The financial institution opened a Mexico broker-dealer in January, and explained in June 2012 that it would get Bolsa y Renta SA, Colombia’s biggest brokerage by trading volume.
“We want to have regional banking institutions to offer nearby-currency- denominated loans to consumers and compete with local lenders,” Roberto Sallouti, BTG’s chief working officer, mentioned in December. The bank’s purpose is to broaden to other Latin American countries all the merchandise and lines of organization it has in Brazil, which includes asset management, personal equity and wealth management, Sallouti stated.
In Chile, the new organization will start off by utilizing other brokerages to promote its annuities, mentioned Montero, adding that in the future it could grow to be an insurance broker-dealer and offer you other kinds of insurance. BTG named Jaime Maluk CEO for the bank’s annuity business in Chile. Maluk was previously an investment manager at Santiago-based Soc. De Asesorias e Inversiones Cruz del Sur Ltda, which was acquired by Santiago- based mostly Grupo Protection SA in March 2013.
Approvals have previously been requested from the Brazilian central financial institution and Chile’s Superintendencia de Valores y Seguros. As soon as the 2 are obtained, the license need to be ready in about 8 months, according to Montero, who expects to enter the Chilean annuity market by the 4th quarter of this year.
Copyright 2014 Bloomberg.