The Talanx Group, the Hanover, Germany-based insurance group, announced it is expanding its business in Italy by making a bolt-on acquisition, via its Italian subsidiary.
HDI Assicurazioni, a subsidiary of HDI International AG, Talanx Group’s Retail International Division, is buying all the shares of Italian non-life insurer Amissima Assicurazioni from Amissima Holdings, which is indirectly owned by investment funds managed by affiliates of Apollo Global Management Inc.
In line with its strategy, HDI’s purchase enhances its diversification by expanding its non-life insurance business and will lift its Italian premium volume by approximately €300 million (US$352.1 million) to roughly €2 billion (US$ 2.4 billion). Roughly 30% of this figure will be attributable to local non-life insurance business.
The acquisition will move HDI up from 17th place to 11th place among Italy’s non-life insurers, measured in terms of market share, giving it the chance to reach the top 10 through organic growth.
The companies agreed not to disclose the amount of the purchase price.
The transaction is expected to be accretive to earnings per share, and improve the group’s return on equity, from 2022 onwards.Talanx said it will fund the transaction from existing funds. The deal is expected to close in the first quarter of 2021, subject to approval by the relevant supervisory authorities.
“We have had a successful presence in Italy – a profitable and important market for us – for a long time now. This bolt-on acquisition allows us to diversify our business activities by expanding our non-life insurance operations. It is in line with our strategy and will further enhance our position on the Italian market,” said Sven Fokkema, the member of Talanx AG’s board of management responsible for the Retail International Division. “Amissima is a perfect fit, since we want to expand our non-life insurance business. We are delighted to be acquiring this company, which has a great deal of potential and complements our activities well.”
Founded in 1920, Amissima was acquired by investment funds managed by affiliates of Apollo Global Management Inc. in 2015. The company’s premium volume of €293 million (US$344 million) puts it among Italy’s top 20 non-life insurers, and it employs approximately 300 people. HDI Assicurazioni’s roughly 400-strong workforce generates a premium volume of around €1.7 billion (2019), said Talanx, noting that €1.3 billion (US$1.5 billion) of this figure is attributable to life insurance business and €400 million (US$470 million) to non-life insurance.
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