Credicorp Ltd.: Credicorp Ltd. to acquire remaining 50% stake in joint venture with Empresas Banmédica

Rhea-AI Summary

Credicorp (NYSE: BAP) has announced an agreement to acquire Empresas Banmédica's 50% stake in their joint venture established in December 2014. The acquisition involves Banmédica's interests in both the private medical insurance business and Pacífico S.A. Entidad Prestadora de Salud (Pacifico EPS) in Peru. Upon completion, Credicorp will become the sole owner of both businesses through its subsidiaries Grupo Crédito S.A. and Pacifico Seguros. The transaction aims to strengthen Credicorp's position in insurance and healthcare access while promoting financial inclusion in Peru. The company assures stakeholders that there will be no disruptions in service or policy administration.

Positive

• Full ownership acquisition strengthens market position in Peru's insurance sector
• Strategic consolidation of private medical insurance and corporate health insurance businesses
• Enhanced control over operations and decision-making post-acquisition
• Continuity assured for existing customers and stakeholders

Negative

• None.

Lima, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Lima, PERU, November 1st, 2024 – Credicorp Ltd. (“Credicorp”) (NYSE: BAP | BVL: BAP), the leading financial services holding company in Peru with a presence in Chile, Colombia, Bolivia, and Panama, announced today that it has reached an agreement to acquire Empresas Banmédica (“Banmedica”)'s 50% interest in the joint venture executed in December 2014 between Pacífico Compañía de Seguros y Reaseguros S.A. (“Pacifico Seguros”) and Banmedica. Closing is subject to regulatory approvals and other customary closing conditions.

In December 2014, Pacifico Seguros and Banmedica established a joint venture to participate as equal partners in the private medical insurance (referred to as Medical Assistance in Credicorp’s quarterly earnings releases), corporate health insurance for employees and medical services businesses in Peru.

By virtue of this acquisition, Banmedica will transfer its 50% interest in the private medical insurance business in Peru to Pacifico Seguros. In addition, Banmedica will transfer its 50% interest in Pacífico S.A. Entidad Prestadora de Salud (“Pacifico EPS”), which runs the corporate health insurance for employees and medical services businesses in Peru, to Credicorp’s subsidiary Grupo Crédito S.A.

Upon completion of the transaction, the partnership will be terminated and Credicorp, through its subsidiaries Grupo Crédito S.A. and Pacifico Seguros, will become the sole owner of both the private medical insurance business and Pacifico EPS. 

The acquisition strengthens Credicorp’s ability to fulfill its aspiration of creating a more sustainable and inclusive economy by improving insurance and healthcare access, while advancing financial inclusion in Peru. Credicorp is committed to continue investing in technology, expanding its footprint, and improving service delivery standards to ensure Pacifico Seguros and Pacifico EPS remain trusted partners for Peruvian families.

Following the transaction, customers, policyholders, agents, and other stakeholders will experience seamless continuity, with no disruptions. No changes in terms, service, or policy administration are expected.

About Credicorp:

Credicorp (NYSE: BAP) is the leading financial services holding company in Peru with presence in Chile, Colombia, Bolivia, and Panama. Credicorp has a diversified business portfolio organized into four lines of business: Universal Banking, through Banco de Crédito del Peru (“BCP”) and Banco de Crédito de Bolivia; Microfinance, through Mibanco in Peru and Colombia; Insurance & Pension Funds, through Grupo Pacifico and Prima AFP; and Investment Management & Advisory, through Credicorp Capital, Wealth Management at BCP and ASB Bank Corp.

About Pacifico EPS

Pacifico EPS is one of the largest corporate health insurance for employees and medical services providers in Peru, with over one million clients. The company reported a net income of S/ 205 million for 2023, highlighting its robust financial performance.  

About Pacifico Seguros

Pacifico Seguros is one of the leading insurance companies in Peru and is part of Credicorp. In 2023 the company reported a net income of S/ 810 million. The company offers a wide range of insurance products, including life, private health, automobile, and property insurance.

For further information please contact the IR team:
Investorrelations@credicorpperu.com

Investor Relations

Credicorp Ltd.

FAQ

What stake is Credicorp (BAP) acquiring in the Empresas Banmédica joint venture?

Credicorp is acquiring the remaining 50% stake from Empresas Banmédica in their joint venture established in December 2014.

What businesses are included in Credicorp's (BAP) acquisition from Banmédica?

The acquisition includes Banmédica's 50% interests in both the private medical insurance business and Pacífico S.A. Entidad Prestadora de Salud (Pacifico EPS) in Peru.

Will there be changes to existing policies after Credicorp's (BAP) acquisition?

No, Credicorp has confirmed there will be no changes in terms, service, or policy administration for existing customers and stakeholders.