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