Spain's Mapfre has acquired motor insurance distributor Abraxas UK, a company Mapfre perceives as having a "strong presence in the UK."
Mapfre said its Mapfre Asistencia subsidiary will pay €16m for Abraxas, which distributes and manages insurance programmes offering guaranteed asset protection and mechanical breakdown guarantee.
According to Mapfre Abraxas had premium volume of €50m in 2004, and is expected to increase that by 25% in 2005.
Mapfre added Abraxas' previous owner, Alex McLean, would continue to manage the company as chief executive officer for at least one year.
The acquisition, already approved by the FSA, is expected to close within several days, Mapfre said.
