Mapfre (Spain) and Grupo Mundial (Panama) recently agreed to form a joint venture that would constitute Central America’s largest insurance company, with the move reportedly already approved by Grupo Mundial’s shareholders.  The resulting venture would bring together Mapfre’s subsidiary in El Salvador and Grupo Mundial’s operations in Panama, Costa Rica, Nicaragua, Honduras and Guatemala.  The combined entity would reportedly currently collect US$ 223 million in annual total premium.

According to reports in the Panamanian press, Grupo Mundial will receive US$ 210 million in the deal, along with a 35% interest in the joint venture.  Mapfre will receive a 65% interest and will reportedly have a right to acquire the remaining 35% of the venture in 2011.

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