Old Mutual Buys Stake in Aiva to Boost Latin America Unit

Old Mutual Plc (OML), the U.K.’s third- largest insurer, bought a majority stake in Uruguay’s Aiva Business Platforms to boost sales in Latin America.

Family-owned Aiva employs about 120 people and has more than $800 million in assets under management, Old Mutual said in a statement today. Terms of the purchase weren’t disclosed.

“Aiva, together with Old Mutual’s emerging markets businesses, will take advantage of operational synergies in Colombia and Mexico in due course,” London-based Old Mutual said in the statement.

The insurer is expanding its emerging-markets division, which includes China, India and Mexico, amid a deepening economic slump in Europe. Revenue at the unit increased 19 percent in the third quarter, making it the firm’s fastest- growing division.

The shares rose 2.3 percent, the most since Oct. 1, to 23.99 rand at the 5 p.m. close in Johannesburg.

To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net