GRUPO CATALANA OCCIDENTE TO BUY GROUPAMA'S SPANISH BUSINESS

Spain-based insurer Grupo Catalana Occidente and majority shareholder Inocsa are to buy the Spanish business of French mutual insurer Groupama for €404.5m ($525.3m). The Spanish insurer confirmed at the end of last month that it was in exclusive talks with Groupama about the deal (IIN 24, May 31 2012), under which Grupo Catalana will buy 49% of Groupama Seguros and Inocsa will buy 51%. Grupo Catalana has an option to buy Inocsa's stake after three years. The Spanish insurer said that the acquisition would consolidate its position as "a leading independent insurance group in the Spanish market for family and small and medium-sized enterprises". The insurer will have nearly 7,000 staff and turnover of more than €4bn after the purchase – pushing it into second place in multi-risk property insurance with a 10.8% market share, and into fifth place in motor insurance, with a 6.5% market share.