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Suramericana investing $15M in new Argentine unit

Colombia's SuramericanaSA is investing $15 million in its new Argentine unit acquired fromU.K.-based RSA Insurance Group Plc,Cronista reported.

Suramericana, who obtained local regulatory approval for thepurchase of the Argentine operations in April, will be rolling out the investmentover a two-year period to upgrade its technology capabilities.

The Argentine unit will be called Seguros Sura once the namechange is approved.

The regional president of Suramericana, Gonzalo Alberto Pérez,said the company is committed to its expansion plans in Latin America and believesin the high growth potential of Argentina. Pérez noted that Argentina currentlyhas a high concentration in mandatory auto and occupational risk insurance, butnon-mandatory insurance products have a penetration of only 3%, which is low comparedto other markets. "It is an underserved market. There are solutions in lifeand home coverage that are fully accessible," the executive said, adding thatthey will focus on business and personal lines as growth targets.

Suramericana is a unit of Grupo de Inversiones Suramericana SA.

RSA reached a dealto sell its Latin American operations to the Colombian financial group in September2015.