AXA announced it has entered into an agreement with SulAmérica SA to acquire 100 percent of its large industrial and commercial risks insurance subsidiary, SulAmérica Companhia de Seguros Gerais, for 135 million Brazilian real ($44.7 million ).
The subsidiary handles hull, marine cargo and property business, which will become part of AXA Corporate Solutions Brazil and Latin America (AXA CS Brazil). The transaction is subject to regulatory and antitrust approval and is expected to be completed in the fourth quarter of 2015.
This transaction is designed to increase AXA’s position in the Brazilian market, AXA said, pointing to the fact that SulAmérica’s large risks insurance business is a significant player in the marine market – it is the second largest hull underwriter in Brazil. In addition, SulAmérica has a strong footprint in Rio and South Brazil, which complements AXA CS Brazil’s current coverage of the Sao Paulo state.
AXA said that SulAmérica’s highly experienced underwriting teams will reinforce AXA’s local expertise and know-how.
SulAmérica’s large industrial and commercial risks insurance operations has a successful growth track record in the Brazilian market, achieving a 12 percent average annual growth in terms of revenues over the past two years, reaching BRL 220 million in 2014 ($72.9 million), AXA said in a statement.
“This acquisition is a great accelerator for AXA Corporate Solutions in Brazil and confirms our long-term aspiration to benefit from this fast-growing insurance market, in line with our ‘Ambition AXA’ strategy. It also reinforces our ability to serve our global clients in Brazil, by leveraging both a strong platform and the skills of very reputable teams,” said Philippe Rocard, chief executive officer of AXA Corporate Solutions.
Source: AXA Corporate Solutions
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