Allianz to acquire Brazilian insurer Sul América's auto and P&C portfolio for €667m
German insurer Allianz is acquiring the automobile and other property/casualty operations of Brazilian insurer SulAmérica for R$3 billion (€667 million), in a move it hopes will strengthen its competitive position in Latin America.
The transaction positions Allianz to become one of the top three insurers in Brazilian market with a market share of around 15 percent in motor and 9 percent in P&C insurance. It also allows further investment in digital and disruptive technologies.
Allianz said the total premium income from the acquired entity totalled approximately €806 million in 2018, with €762 million stemming from motor and €45 million from other P&C operations.
The insurer noted that with a premium volume of approximately €16 billion and a growth rate of six percent in 2018 alone, the market for property and casualty insurance in Brazil is very attractive.
“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,” said Oliver Bäte, chief executive officer of Allianz SE. “We are attaining a clear leadership position to effectively compete in the growing Property-Casualty market of the largest economy in South America.”
Eduard Folch Rue, chief executive officer of Allianz Seguros S.A. (Allianz Brasil), added: “We are creating a new Allianz combining the best people of both sides and forming an outstanding team that will embrace the opportunities of the Brazilian market with full commitment and confidence.
“Our trademark will be the innovation, digitalization, and the service to our customers through our main partners, the brokers and advisors. We will combine the local know-how of SulAmérica with all the strengths that an international Group like Allianz has.”
The transaction is scheduled to be completed within the next 12 months, pending regulatory approvals.
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Allianz seals €667m acquisition deal with Brazil's Sul América
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