Mapfre and Euler Hermes have signed a memorandum of understanding to build a strategic alliance aimed at jointly developing their credit and bond insurance business in Spain, Portugal and Latin America.

Mapfre has a controlling interest in Middlesea Insurance plc.

Through this alliance, both groups will own 50 per cent of a joint venture integrating their existing activities in the aforementioned markets.

The joint venture represents around €200 million premiums (as of 2010 figures) and will rank first or second in most of the considered markets.

This new partnership is expected to start its operations by the end of 2011, subject to regulatory approval.

Euler Hermes is the worldwide leader in credit insurance and one of the leaders in the areas of bonding, guarantees and collections.

With more than 6,000 employees in over 50 countries, Euler Hermes offers a complete range of services for the management of business to business trade receivables and posted a consolidated turnover of €2.15 billion in 2010.

The group insured worldwide business transactions totalling €633 billion exposure at the end of 2010.

Euler Hermes, a subsidiary of Allianz, is listed on Euronext Paris. The group and its principal credit insurance subsidiaries are rated AA- by Standard & Poor’s.

Mapfre is the leading insurance company in Spain and is present in more than 40 countries, especially in the Latin American insurance, reinsurance and assistance markets, in which the group leads the non-life insurance business.

Mapfre has over 35,200 employees and more than 20 million customers worldwide.

In 2010 its net result exceeded €933 million and its revenues amounted to over €20,470 million. Mapfre is listed on the Madrid and Barcelona stock exchanges, and forms part of the IBEX 35.

The operating companies of the group are rated AA for financial strength by Standard & Poor’s.