German re/insurer secures top five market position in a LatAm market
Germany-based group that houses two large re/insurance companies has strengthened its presence in its strategic target region, securing the top five position in one of Latin America’s core markets.
Talanx, the parent company of Hannover Re and HDI Group, has formed a strategic partnership with a state-owned bank in Chile, as part of its strategic goal to further grow and diversify its international retail business and drive digitalisation forward.
BancoEstado and Talanx's Chilean subsidiary company HDI Seguros have entered into an exclusive agreement for the next 13 years covering the sale of non-life insurance products.
BancoEstado is the only state-owned bank in Chile. It is the market leader by deposits, sales network and number of customers in the country. While Talanx has been active in the Chilean retail customer business through the HDI brand since 2008. In 2015, the insurer acquired the majority holding in insurance group Inversiones Magallanes, making it one of the country’s leading composite insurers.
Talanx said its aim now is to expand its P&C insurance portfolio with the new banking partnership to further products such as unemployment insurance. It expects the partnership to generate a boost in premium volume to HDI’s business, adding a portfolio of CLP approximately 84 billion (€93 million). HDI Seguros in Chile achieved gross written premiums of €283 million in 2020.
Talanx will finance the transaction from its existing equity capital and expects a slightly positive effect on earnings per share from 2023.
“We are proud to have concluded this agreement with BancoEstado and we are looking forward to work together. BancoEstado has a strong sales network and it is the biggest and most established banking brand in the Chilean market," said Wilm Langenbach (pictured), member of the board of management of Talanx AG responsible for the international retail division and chairman of the management board of HDI International AG.
"This cooperation therefore takes us a great step forward in our strategic target region of Latin America – we are confident that the partnership will contribute to the further growth and success in Chile and in the International Retail Division.”
Nicolas Masjuan, board member at HDI International AG responsible for Latin America, added: “At the same time, the collaboration gives additional momentum to our digital transformation. We will merge the expertise of HDI in digital sales with the great wealth of experience held by BancoEstado in this area. With 9 million digital customers, BancoEstado has already a very strong digital reach.”
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
