HARTFORD, Conn., July 22, 1996 — Aetna Inc. (NYSE: AET) and Grupo Financiero Bancomer (“GFB”), Mexico’s second-largest banking group, have reached agreement-in-principle on the formation of a new joint venture that will market and distribute a broad array of products such as life, auto, and property and casualty insurance, to Bancomer’s customers.
Aetna will purchase a 49 percent stake in the joint venture from GFB for US$115 million in cash initially, and up to US$63 million in contingent payments based on the performance of the new company over the first five years of operation. Closing of this transaction, which is anticipated in the third quarter, is subject to regulatory approval and final documentation. Operations are expected to commence later this year.
“Banks will be an important distribution channel for our products in Mexico,” said Frederick C. Copeland, Jr., president of Aetna International. “Bancomer has the most extensive retail banking franchise in Mexico and, as such, is an ideal bancassurance partner.”
Aetna Inc. is one of the largest U.S. health care, insurance and financial services organizations. It is centered around three core businesses: health, retirement services and international. Aetna International offers a variety of life insurance and financial services products to citizens of 12 countries, primarily in Latin America and the Pacific Rim. Aetna International had revenues of $1.5 billion and net income of $87 million in 1995.
For more information about Aetna Inc., please visit the company’s website at www.aetna.com.