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.”
ACE, Latin America, Itaú Seguros, Itaú Unibanco