November 18, 2013 / 10:47 PM / 6 years ago

Swiss Re to buy stake in Brazil's SulAmérica for $334 million

The logo of the world's second biggest reinsurer Swiss Re is seen in front of the company's headquarters in Zurich July 8, 2013. REUTERS/Arnd Wiegmann

ZURICH (Reuters) - Swiss Re, SRENH.VX the world’s second-largest reinsurer, said on Monday it agreed to acquire a $334 million stake in Brazilian insurance group SulAmérica (SULA11.SA).

The deal is expected to be completed in the fourth quarter.

Swiss Re said it would hold a 14.9 percent stake SulAmérica, making it the second-largest shareholder in the firm, after buying an 11.1 percent stake from ING ING.AS and a 3.8 percent stake from the Larragoiti family, which founded the Brazilian insurer 117 years ago and is its controlling shareholder.

The deal between ING and Swiss Re is dependent on a restructuring of Sulasapar, the investment vehicle controlled by the Larragoiti family, that was announced earlier this year, as well as regulatory approval, the Swiss company said.

SulAmérica, Brazil’s third-largest insurer, offers health and auto insurance, as well as property, casualty and life insurance.

ING agreed in February to reduce its stake in SulAmérica, raising funds to help repay a state bailout received after the global financial crisis.

Reporting by Alice Baghdjian; Editing by Dan Grebler

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