MAPFRE S.A. (“MAPFRE”) and The Commerce Group, Inc. (NYSE: CGI) (“Commerce”) jointly announced that MAPFRE has completed its acquisition of Commerce.
MAPFRE is the largest insurer in Spain, ranks as the leading non-life company in Latin America and is the 11th largest non-life insurer in Europe (as measured in premiums). Commerce is the 20th largest automobile insurer in the United States (as measured in premiums) and its insurance company subsidiaries had nearly $1.9 billion in direct written premiums in 2007. Commerce, the largest auto and homeowners’ insurer in Massachusetts, is licensed in all 50 states and has operations in 17 states.
MAPFRE paid $36.70 in cash per share of Commerce’s publicly traded stock, with total merger consideration of $2,211 million, as of the date of the closing.
“This is an important day in the history of MAPFRE,” said José Manuel Martínez Martínez, Chairman of MAPFRE. “Not only is the acquisition of Commerce the largest in the history of our company, but it fits perfectly with MAPFRE´s growth strategy and commitment to turn into a global insurance group. Furthermore, it represents a decisive step in MAPFRE’s international expansion, especially in the United States. We want to welcome Commerce’s employees, agents, clients and suppliers to our group, and encourage them to continue to trust and grow on the shared values that have joined our companies.”
Commerce’s Chairman and Chief Executive Officer Gerald Fels said “becoming a part of the MAPFRE Group benefits all of Commerce’s stakeholders and we are proud that we have grown our company from a small start-up in 1971 to a $2 billion business that today becomes part of one of the world’s leading insurance groups. This transaction underscores the commitment of our founder, our shareholders, directors, and employees over the last 37 years to building a world-class business.”
MAPFRE intends to maintain Commerce’s headquarters in Webster, Mass. and will continue to write business in Mass. and across the United States through independent insurance agents.
“Commerce’s strong independent agent force and its committed, hard working and talented employees were critical considerations in our decision to acquire Commerce,” said Mr. Martínez.
Commerce will continue under the leadership of its current management team and its approximately 2,400 employees will retain their jobs.
