MetLife Inc. is buying into the brokerage operation of BancoEstado, Chile's state-owned bank, and will sell life insurance and annuities through its branches.
The New York company paid $30 million Monday through its MetLife Chile Inversiones Ltda. on a contract to buy a 49.9% stake in the brokerage operation, BancoEstado Corredora de Seguros.
The deal is subject to regulatory approval. If the enterprise does well enough MetLife will make a second payment, in 2009, of no more than $40 million.
John Calagna, a spokesman for MetLife, said it owns no operations in South America. It distributes its products through agents in Chile, Argentina, and Brazil, as well as Mexico, he said, and though it is not looking to expand into other South American countries, it will consider all opportunities.
Mr. Calagna said that BancoEstado is a large and well-respected bank, and that the agreement gives MetLife a great way to add customers and products in Chile. BancoEstado has $12 billion of assets and serves more than eight million people through 310 branches.
MetLife has distributed annuities and individual and group life insurance in Chile since 2001. In April 2003 it began offering mortgage loans through its agents there.
BancoEstado's president, Jaime Estevez, said in press release that the deal will help his bank offer insurance to more uninsured Chileans.
