Helvetia acquires majority stake in Spanish Caser

International insurance group Helvetia is acquiring a majority holding in the Spanish insurer Caser (Caja de Seguros Reunidos, Compañía de Seguros y Reaseguros). The acquisition enables Helvetia to considerably increase its market share in Spain, further strengthen its non-life business and expand its distribution capabilities.

"The acquisition of Caser perfectly fits Helvetia’s strategy," said Philipp Gmür, Group CEO of Helvetia. "Our business in Spain has performed very well in recent years and will now be strengthened further by this transaction, which will also substantially increase the importance of our European activities. Both companies complement each other outstandingly, including from a cultural perspective. Caser will also immediately make a significant profit contribution."

Helvetia said the acquisition allows to significantly strengthen its core business and non-life business across the entire Helvetia Group, and that it will benefit from profitable new sales channels in banking distribution. Caser has distribution agreements with Ibercaja, Unicaja and Liberbank as well as with other banks. These partnerships will be maintained, meaning Helvetia will win important new strategic partners in Spain. Ibercaja, Unicaja and Liberbank are present across Spain with around 3,100 branches, serving more than 7 million customers.

Caser also provides Helvetia with the opportunity to tap into new business models to further diversify its business. In 2018, Caser generated 9 percent of its revenues through fee income from eco-systems in the areas of health and old-age care, which are closely linked to the life and pension businesses. Among other things, Caser operates nursing homes and hospitals, which offer growth opportunities given demographic developments. Caser also provides various services for real estate.

"Caser is very successful on the Spanish market. This market is very attractive and is growing strongly. We have repeatedly emphasised that an acquisition in Spain would be a very interesting proposition and it is now possible for us to take this opportunity that has opened up," said Gmür.

Helvetia has reached an agreement with various shareholders with respect to the sale of their equity stakes. The other shareholders have the option to sell their shares to Helvetia at the same conditions. Helvetia expects that it will ultimately acquire a holding of up to 70 percent in Caser. The bank distribution partners will maintain a stake of around 30 percent in Caser. The purchase price for a holding of almost 70 percent in Caser is around €780 million.

Caser will continue to operate with its existing, well-established brand on the Spanish market, as will Helvetia Spain. The management teams and locations of both companies will also remain unchanged.

Helvetia intends to finance two thirds of the acquisition of Caser by issuing hybrid bonds and one third by issuing new shares.