The insurance group will hold 10 percent of the capital of the independent financial company, with the option to increase its shareholding to 20 percent within three years
Abante and MAPFRE have signed a strategic alliance to create an independent platform for financial advisory services and the distribution of the most competitive products in the Spanish market. The insurance group will take a 10 percent stake in Abante through a capital increase, and will retain the option to acquire a further 10 percent, up to a maximum of 20 percent, within a period of three years.
The terms of this alliance will allow Abante to continue developing its advisory and planning model through the incorporation of additional resources and the capacities of an established group while maintaining its independence, which has been one of its defining hallmarks since its creation. MAPFRE will participate in the growth of the private banking market and consolidate its leadership position in asset management.
MAPFRE, which will become a strategic insurance partner of Abante, will incorporate insurance products and solutions into Abante’s Financial Advisory and Life Financial Planning services. Also envisaged is the development of new products focused on providing solutions to the challenges brought about by longevity and the financial uncertainties it provokes.
Both companies will work jointly on the design, creation and distribution of traditional, new and alternative financial products, such as venture capital, real estate, debt and others considered attractive to both individuals and institutions.
The resources contributed by MAPFRE will be assigned in their entirety to developing this alliance and will facilitate the necessary investment to continue working on the digitalization of the financial advisory service. Corporate transactions in the Spanish financial market and the internationalization of Abante’s private banking model in Latin America, where MAPFRE leads the Non-Life segment, will also be considered.
Antonio Huertas, chairman and CEO of MAPFRE, said that “this significant agreement underpins our strategic focus in the asset management world.” “Joining forces with such a prestigious partner as Abante, who have a long track record in the industry, makes the objective of becoming independent leaders in the sector in the medium-term eminently feasible, enabling us to compete in the distribution of financial products in the same way as any other financial institution or private bank,” he added.
Santiago Satrústegui, president of Abante noted that “partnering with MAPFRE is an enormous opportunity for Abante, in that it reinforces our capital structure and allows us to invest more and do so better, as well as develop new products that would have been complicated to roll out alone.” “The agreement means that we maintain our independence as far as capital and managing the company is concerned; our identity, our brand and our values represent a clear competitive advantage for Abante and were something we never wanted to concede,” he added.
MAPFRE is a global insurance company with a worldwide presence. It is the benchmark insurer in the Spanish market, the largest Spanish-owned insurer in the world, the third largest insurer in Latin America and is ranked number six in Europe in Non-Life by premium volume. MAPFRE employs more than 35,000 professionals, and in 2018, the company recorded net earnings of 702 million euros on total revenues of 27 billion euros.
ABANTE ASESORES is a financial group specializing in asset management and advisory services. Abante employs 200 professionals and manages 3.5 billion euros of assets on behalf of 7,800 clients. In March 2018, the company moved to a new 4,000 square-meter headquarters located at Plaza de la Independencia, in a building owned by MAPFRE. This facility is complemented by Abante’s office network in Barcelona, Valladolid, Sevilla, Malaga and Zaragoza.