Talanx has acquired Generali Colombia Seguros Generales S.A. and its life insurance subsidiary, Generali Colombia Vida Compañia de Seguros S.A., for approximately €30 million (US$34.6 million)
Generali explained that Talanx is acquiring 91.3 percent of Generali Seguros and 93.3 percent of Generali Vida.
Subject to approval by the Colombian regulatory authority, the transaction is expected to close by the end of the year.
In a separate transaction, Generali announced it has completed the sale of its property and casualty business in Guatemala, Aseguradora General S.A., to the Neutze family, Generali’s long-term local partner. (The amount of this transaction was not disclosed).
Frédéric de Courtois, Generali’s CEO of Global Business Lines & International, commented: “These transactions are another step forward in the rebalancing of Generali Group’s geographical presence across the world. We are making good progress in the rationalization of our geographical footprint pursuing our strategy to make Generali a simpler and smarter company.”
Generali said it will remain active in Guatemala with its international business lines, namely, Generali Employee Benefits, Generali Global Corporate & Commercial and Europ Assistance.
“For Talanx, the acquisition of Generali Colombia is a strategic step to open up the fifth largest Latin American market,” said Torsten Leue, a member and chairman of the board of management at Hannover, Germany-based Talanx International AG.
“For us, this means further strengthening our position in the target region,” Leue added. “The companies are well positioned and have strong management, which will contribute to the Talanx Group’s continued growth and success.”
Headquartered in Bogotá, Colombia, the companies have eight branch offices in the country, Talanx said, noting that they have been operating successfully in the Colombian market since 1952.
Generali Colombia Seguros Generales S.A. and its life subsidiary, Generali Colombia Vida Compañia de Seguros S.A., jointly achieved gross premium volumes of around €59 million (IFRS) and earnings before interest and taxes (EBIT) of around €2 million (US$ 2.3 million) in 2016, Talanx affirmed.
Approximately 70 percent of the portfolio relates to the property insurance business and around 30 percent to life insurance. Talanx said it expects the companies will provide a positive contribution to earnings over the next few years.
“With a young population and a growing middle class, the country is an interesting emerging market, particularly for the retail division,” the company said.
Talanx already operates in six Latin American countries through the HDI brand.
Source: Talanx International/Generali
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