Peru-based Diviso Grupo Financiero S.A. plans to offer insurance products catering to small- and medium-size enterprises, El Comercio reported, citing CEO Fernando Romero.

The group applied for the creation of a life insurance company and expects to operate in 2017, depending on regulatory approval, Romero said.

In the first three to five years, the insurance company's business model is expected to complement the group's Financiera Credinka line, the executive said. He noted that they will offer coverage to SME clients given the low insurance penetration in the country.

Meanwhile, the group expects to generate increasing returns in the short term following three acquisitions performed during 2016. In the last three years, the group has raised its equity by 25%, with its acquisitions in the microfinance sector giving it the opportunity to expand in that sector, the report said.