U.S.-based insurance company BMI Financial Group Inc. has opened a subsidiary in Colombia with a direct investment of 28 billion pesos, La República reported.

The new subsidiary gained approval from regulator Superfinanciera early in 2017 under the name BMI Colombia Compañía de Seguros de Vida SA.

BMI Seguros Colombia's services will focus on individual life and health insurance, which are the specialty lines of BMI Financial Group in Latin America. The company already operates in the Latin American countries of Costa Rica, Guatemala, Ecuador and the Dominican Republic.

According to Carlos Sánchez Rodríguez, president of BMI Colombia, the insurer plans to cater to the middle class market due to its growth potential. BMI Financial Group is also further exploring markets in Panama, Peru, Mexico, Chile and Argentina, the executive said.

BMI Colombia expects to place between 2,000 and 2,500 policies on the Colombian market within the medium term.

Insurance premiums only account for 2.8% of Colombia's GDP, which is low compared to other countries in the region, Sánchez Rodríguez cited insurance group FASECOLDA as saying.

As of May 9, US$1 was equivalent to 2,854.40 Colombian pesos.