By Jeffrey T. Lewis


SÃO PAULO--Qualicorp Consultoria e Corretora de Seguros SA's shares soared 13.4% after Rede D'Or São Luiz SA transferred management of an almost 20% stake in the insurance broker to a third party.

Shares of Qualicorp reached 6.26 reais ($1.16), and are down 66% over the past year through Monday's close. Shares of Rede D'Or were little changed at 27.07 reais. Brazil's benchmark stocks index, the Ibovespa, was down 0.7% in mid-morning trading.

Hospital operator Rede D'Or's merger with insurer Sul America SA was approved by Brazilian competition authorities in December. The regulator ruled that Qualicorp, which is about 25% owned by Rede D'Or, can't sell only Sul America's health plans or be the sole broker of Sul America's health plans.

Rede D'Or said Monday after the close that it will transfer a 19.85% stake of its Qualicorp shares to an independent manager that will use management, portfolio and governance techniques in line with best market practices to create long-term value for Qualicorp.


Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com


(END) Dow Jones Newswires

01-03-23 0946ET