AEGON first went into Mexico in the mid-1990s. But in 2002, the Group sold its 49% stake in Grupo Financiero Banamex-Accival SA after the Mexican bank was taken over by Citigroup. AEGON said it would return to Mexico and in June 2006 the Group made good on its promise, teaming up with Seguros Argos, one of the country’s leading life insurers. Luis Huerta Rosas, Seguros Argos’ Chief Executive, explains how working with AEGON is opening up new opportunities for both companies.

“I’ve always seen our relationship as a kind of marriage – the way we met, became partners and are now working together. You have the nervousness of the first meeting, you have the excitement of the wedding plans, the living arrangements, and you have the honeymoon. We’re probably still in the honeymoon phase.

We already know AEGON will be the ideal partner for us. The Group provides financial strength, expertise and the reputation as one of the world’s leading life insurance and pension companies. But at the same time, AEGON recognizes the value of local knowledge and gives its partners the support they need as their markets grow and develop.

Working together, AEGON and Argos have a great opportunity in Mexico. One of the advantages offered by a market like Mexico is that there is huge, untapped potential. Traditionally, Mexican life insurance companies have concentrated their efforts on the affluent, upscale market – the people with money. A lot of the other market segments – the middle income and the low income – have been ignored. These are precisely the areas Argos is focusing on.

The key to Argos’ business is that we provide affordable, easy-to-manage products. The mid-to-low income bracket now accounts for 40% of the population. We’re talking about people who, in general, earn anywhere between USD 300 and USD 750 a month. The cost of our products is in line with what people can afford and we have a very straightforward payment method: payroll deduction. This approach is very well suited to the Mexican market. Look at our growth in the past few years. We’re a young company. We were only established