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Fosun’s Fidelidade pays 46.8 million euros for 70 per cent of Mozambican insurance company SIM

Company aims to develop different channels and partnerships in distribution of insurance and meet the needs of a greater number of Mozambican customers.

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Company aims to develop different channels and partnerships in distribution of insurance and meet the needs of a greater number of Mozambican customers.

ARTICLE BY

PUBLISHED

READING TIME

Less than 1 minute Minutes

UPDATED: 22 Dec 2023, 4:45 am

Portuguese-based insurer Fidelidade, which is majority-owned by Fosun, is buying 70 per cent of Seguradora Internacional Moçambique (SIM), which operates under the brand Ímpar, for 46.8 million euros.

In information sent to the Portuguese Securities Market Commission (CMVM), Banco Comercial Português (BCP) said that Banco Internacional de Moçambique (BIM), in which it indirectly holds a 66.69 per cent stake, has agreed with Fidelidade the sale of 70 per cent of the share capital and voting rights of SIM.

Fidelidade added that of the remaining share capital of SIM, 22 per cent will be held by Millennium BIM and 8 per cent by other minority shareholders and that “it has an option that allows it to subsequently acquire an additional 12 per cent stake.”

The Portuguese insurance company also announced that SIM’s board of directors “will continue to be chaired by Manuel Alfredo Gamito and the vice-chairmanship will be held by Rui Oliveira and Carlos Leitão, who will also be the executive chairman.”

BCP’s also told CMVM that “under the long-term exclusive distribution agreement, BIM will promote the distribution of SIM insurance through the banking channel, continuing to provide its customers with a wide range of competitive insurance products, which is reinforced by the partnership with a leading insurance group, such as Fidelidade.”

The executive chairman of Fidelidade, Rogério Campos Henriques, added that, with this operation, the Fidelidade Group “will start operating in the Mozambican market with the Fidelidade and Ímpar brands”, allowing it “to develop different channels and partnerships in the distribution of insurance and meet the needs of a greater number of Mozambican customers.”

BCP also stressed that given the value of 46.8 million euros, “the operation has a (positive) impact on BCP’s consolidated results for the current year […] of approximately 5.2 million euros and a positive impact in the consolidated ratio of Common Equity Tier 1 and total capital of seven basis points”.

Founded in 1808, Fidelidade is known as the leading insurance company in Portugal, with a market share of 28 per cent in 2020, operating in Angola, Cabo Verde, Mozambique, Spain, France, Macao, Peru, Bolivia, Paraguay and Chile, CLBrief reported.

 

UPDATED: 22 Dec 2023, 4:45 am

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