BT Plans to Expand Latin American Insurance Business

By Kraus, James R. | American Banker, June 19, 1997 | Go to article overview

BT Plans to Expand Latin American Insurance Business


Kraus, James R., American Banker


In a bold and unusual move for a U.S. bank, Bankers Trust New York Corp. plans to build an insurance underwriting and sales business across Latin America.

The bank company said it has brought Latin American partners into its Chilean insurance and annuity underwriting subsi-diary-Consorcio Nacional de Seguros SA-in a bid to extend those operations both within Chile and throughout Latin America.

Last week, two Chilean health care companies-Cruz Blanca Prevision y Seguros SA and Banmedica SA-each bought a 25% stake in Consorcio Nacional for $109 million. Proceeds of the sale will be put into Bankers Trust earnings in the second and third quarters this year.

The two Chilean companies, which are part of wider Chilean business conglomerates, plan to use their Latin America networks to help expand insurance operations.

"The idea is to expand in Latin America, and we feel that Consorcio is the best vehicle for that expansion," said Juan Bilbao, senior managing director and head for Latin America at Bankers Trust.

Although other U.S. banks have pondered getting into the insurance business abroad, few have made any move to do so. Citicorp obtained Federal Reserve Board approval in 1985 and is said to be developing insurance operations in Latin America as well as in Europe. Citicorp officials were unavailable for comment.

Under Federal Reserve Board regulations, banks are allowed to underwrite and sell life insurance and annuities outside the United States. But the regulations also require banks engaging in such activity to deduct the full amount of their investment in insurance companies from their capital.

"The main constraint is just how much of a hit on capital a bank is prepared to take," said Paul Pilecki, a partner in the financial institutions group at the Washington-based law firm, Shaw, Pittman, Potts & Trowbridge.

The Bankers Trust strategy to develop insurance operations got mixed reviews from analysts. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

BT Plans to Expand Latin American Insurance Business
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.