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Paraguay's Banco Familiar to open new insurance company

Paraguay-based Banco Familiar SAECA will open a new insurance company in the country, to be called Familiar Seguros, 5Dias reported.

The bank will be the major shareholder of Familiar Seguros, which will focus mainly on microinsurance, but will also look to offer insurance products to individuals and small and medium-sized enterprises.

"We intend to work in a coordinated and complementary manner with the bank, especially focused on its client portfolio," economist and former Paraguayan finance minister César Barreto, who will head the new company, told the newspaper.

When it begins operations April 22, Familiar Seguros will have an initial capital of 10 billion guaranies. According to Barreto, a growing middle class in Paraguay will result in increased demand for insurance services.

Familiar Seguros will become the 36th nationally registered insurance company in Paraguay, the report said.

As of March 25, US$1 was equivalent to 6,197.20 Paraguayan guaranies.