After transferring its operations in New York and New Jersey it has completed a series of divestments to optimize the structure and concentrate operations in priority markets
MAPFRE has entered into an agreement with The Plymouth Rock Company concerning the sale of its operations in the States of New York and New Jersey, as part of the divestment process in non-priority markets drawn up last December during MAPFRE’s Investor Day.
In the case of New York, it will sell MAPFRE Insurance Company of New York, to Plymouth Rock Assurance Corporation, whereas the New Jersey operation has been structured as a business portfolio transfer to several Plymouth Rock Group affiliate entities.
Both operations, that have been closed simultaneously, are subject to the approval by the regulatory authorities of New York and New Jersey.
This operation completes the business reorganization process announced months ago by MAPFRE, involving the transfer of its Non-Life business portfolios in the States of Tennessee, Kentucky and Indiana to Safeco Insurance (Liberty Mutual Group), as well as the sale of MAPFRE Life Insurance Company to Swiss firm Re Life Capital.
“MAPFRE doesn’t anticipate that these transactions –successfully completed and within the scheduled time frame- will cause any material impact at the end of its second quarter earnings.
Once the business structure is optimized, MAPFRE will concentrate its operations in 15 States where the company has major infrastructure and distribution capacity, and therefore greater exploitation of economies of scale, allowing an acceleration of the profitable growth objective in the United States.
“These agreements underscore MAPFRE’s commitment to strengthening the operations in our main countries and lines of business, which will put is in a strong position in terms of profitable growth”, explained Alfredo Castelo, CEO of MAPFRE in North America.
MAPFRE Insurance is ranked among the 20 largest automobile insurance companies in the United States, and is the largest insurer of private automobiles in Massachusetts. It represents the third largest market for MAPFRE by premium volume, recording 2,202 million euros in 2017.