Porto Seguro has accepted to integrate its automobile and residential insurance business with Itau Unibanco
The contract between Brazil-based bank, Itau Unibanco and insurance company Porto Seguro is likely to make way for further mergers and acquisitions in the domestic insurance market – reported Reuters.
Porto Seguro has accepted to integrate its automobile and residential insurance business with Itau Unibanco, a non-government bank by assets.
Patrick Larragoiti, chief executive of Sao Paulo-based SulAmerica, an insurer, stated that the deal has increased the importance of banking groups as distributors of insurance products.
He further added that combinations will focus basically on health insurance.
Mr. Larragoiti said: “We see ourselves as an agent of consolidation and we are open to take part in mergers and acquisitions with other market participants.”