ACE has completed a significant acquisition that will see it become the largest commercial P&C insurer in Brazil – the largest insurance market in Latin America.
ACE will pay $685 million for the corporate property/casualty (P&C) business of Itaú Seguros, part of Itaú Unibanco, Brazil’s largest non-government bank.
The Itaú Seguros corporate P&C insurance business was established in 2006 and has been 100 percent owned by Itaú Unibanco since 2009.
In 2013, the business had approximately $950 million in gross premiums written and an 18 percent market share, making it Brazil’s leading commercial P&C carrier for the large corporate market.
The business, which focuses on a broad array of property and marine coverages for large corporate accounts, has approximately 320 employees, a national distribution footprint and relationships with more than 600 brokers.
Evan Greenberg, chairman and chief executive officer, ACE, said: “Brazil is a large and important market to ACE’s strategy in Latin America. The addition of Itaú Seguros’s large corporate P&C insurance business will complement and deepen our longstanding presence in Brazil in a significant way.
“This is a great opportunity to acquire from one of the region’s largest and most highly regarded banks an insurance market leader that has complementary business lines, national reach, extensive distribution, a diversified portfolio and, importantly, an experienced, professional and talented management team with an underwriting culture similar to ours. We are delighted that they will be joining ACE.”
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ACE, Latin America, Itaú Seguros, Itaú Unibanco