Allianz has agreed to acquire automobile and other property/casualty insurance operations from Brazil’s SulAmérica for BRL 3 billion (667 million euros).
Allianz said the acquisition will strengthen its competitive position in Brazil, making it one of the top three insurers with a market share of around 15 percent in motor and nine percent in property/casualty insurance, and establishing Allianz as the second largest motor insurer.
The total premium income from the acquired entity totaled approximately 806 million euros in 2018, with 762 million euros stemming from motor and 45 million euros stemming from other P/C operations. Pro-forma premium income of the combined entity is 1.5 billion euros with 1.2 billion euros related to motor business.
“With the acquisition of SulAmérica’s Property-Casualty operations, we have taken another major step in the strategic repositioning of our Latin American insurance businesses,” saidOliver Bäte, chief executive officer of Allianz SE.”
In addition to auto SulAmérica’s P/C lines include homeowners, small business and condominium insurance. SulAmérica also sells life, health and dental insurance and offers asset management, private pension and savings bonds products. In 2018, the company’s operating revenues totaled R$20.5 billion.
The transaction is scheduled to be completed within the next 12 months, pending regulatory approvals.
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