Talanx can do more M&A, even building on new LatAm leadership

Global re/insurance group Talanx need not tame its M&A appetite just to digest its recent major purchases in Latin America, but could add anytime to its assets in Central and Eastern Europe or North American specialty and could soon even take further steps towards #1 position in LatAm, top officials have indicated. 

“Yes, we could imagine doing something more,” CEO Torsten Leue told his company's fourth quarter investor call of M&A appetite following recent purchases of Liberty Mutual assets in Latin America. 

“The focus will be international,” Leue said. “That's Latam and CEE and in industrial lines we like the specialty markets, especially North American markets - that will be the focus when it comes to M&A.” 

Talanx made a major move into Latin America with the purchase of Liberty Mutual assets, giving itself the #2 slot across the region on key assets in  Brazil, Chile, Colombia, and Ecuador. The most recent elements of the deal closed in early March. Brazil came on board already late 2023. 

Further LatAm appetite was repeatedly justified purely on the fact that “we are not yet number one” on that market, tamed only by a vow of discipline in deals. 

“We will look at everything that is on the table,” Leue said, tempering with a vow that “we will stay disciplined as we were in the past.” 

The coast is clear for other jurisdictions starting today and should be clear for LatAm in short order.

“For a merger you need one, maximum two years, to integrate. If you don't do it in that time it is very difficult to get the economics right,” Leue said of the outlook in LatAm after the Liberty Mutual acquisitions. 

“We are on the way, but it doesn't give us any limits to grow somewhere else,” he said, citing “different teams and different approaches” across the group.   

Early signs of the integration of Liberty Mutual operations are encouraging, CFO Jan Wicke said. Talanx expects a positive contribution already in 2024 despite booking restructuring charges.

“The start was very positive in Latin America, both with regard to the market profitability as well as regard to how the integration of the liberty entities started within Brazil already and now we have started in Chile, Columbia and Ecuador.”  

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