Aegon and Seguros Argos complete acquisition and agree to form Afore joint venture
Aegon has completed its acquisition of a 49% interest in Seguros Argos S.A. de C.V., a Mexican life insurance company specializing in the sale of life insurance to individuals through their employers (worksite marketing). Ranked by market share for individual life insurance, Seguros Argos is seventh among life insurance companies in Mexico.
Aegon and Seguros Argos have also signed an agreement to form a start-up pension fund management joint venture, which will be called Afore Argos. Aegon will own 49% of Afore Argos, which received final approval from CONSAR, the Mexican regulatory body that oversees the pension industry.
"We look forward to combining Aegon's expertise in providing innovative life insurance and pension solutions with the solid reputation of Seguros Argos to maximize the opportunities of the Mexican market," said Donald J. Shepard, Chairman of Aegon's Executive Board. Argos CEO Luis Huerta Rosas stated: "We believe offering Afore services will be very positive for the existing policyholders of Seguros Argos as well as the many workers in Mexico seeking a quality, low cost Afore alternative."
Aegon's existing operations in Mexico include Aegon Direct Marketing Services, which works with insurance companies, banks, and other financial institutions to provide direct marketing services. In addition, Transamerica Reinsurance (a business unit within an Aegon company) is active in the life reinsurance market in Mexico.
Argos was started in 2002 by executives with a long tenure in the Mexican insurance market. At the end of 2005 Argos had more than 420,000 policies in force and 1,266 million pesos (EUR 86.6 million) in premium income.
About Seguros Argos
Founded in 2002 and headquartered in Mexico City, Mexico, Seguros Argos has grown rapidly and is now a leading life insurance company in Mexico. Argos specializes in the sale of individual life insurance through the worksite. Argos also sells group life insurance as well as savings products. Employing more than 100 people the company is represented in all of the Mexican states. Its unique approach to serving the needs of the mid to lower-income workers' market, based on innovative and tailor-made programs, has allowed Seguros Argos to become one of the most respected specialized companies in the market. It is through this approach that Seguros Argos has made personal insurance products available to such a large number of individuals otherwise lacking access to insurance in Mexico.
