Talanx climbs to second-largest P&C insurer in Latin America
Talanx has unveiled a 'major milestone' in Latin America, positioning itself as the second-largest property and casualty insurer in the region with the completion of its acquisitions in Chile, Colombia and Ecuador.
On March 1 2024, the retail international division of the Talanx Group completed the acquisition of the business of Liberty Seguros in Chile, Colombia and Ecuador with retail customers and small to mid-sized enterprises. The transaction also includes Liberty Specialty Markets direct insurance business in Chile and Colombia.
The acquisition of companies from Liberty Mutual Insurance Company makes Talanx second-largest property and casualty insurer in Latin America, the company claims.
HDI said it has strengthened its market positions and moved up to number 1 in Chile, number 7 in Colombia and number 15 in Ecuador in P&C insurance business. Based on the results for the full 2022 financial year, HDI expects to boost the premium in these countries by altogether more than €600 million. Combined with the acquisition in Brazil that closed in November, the annual premium income will likely increase by around €1.7 billion.
On a pro-forma basis for the full-year results for 2022, HDI Seguros and Liberty Seguros in Chile with a total workforce of 1,300 together generated a premium volume of around CLP 840 billion (€920 million). In Colombia the two companies with a team of altogether around 1,200 employees have generated a premium volume of approximately COP 1.5 billion (€300 million). The acquired company in Ecuador will add approximately 140 people to the workforce. The premium volume was around $33 million (€31 million).
"The acquisition is a major milestone in our strategic success story in Latin America. We are delighted to have advanced into the top 2 P&C insurers as a result of all Liberty acquisitions," said Wilm Langenbach, the member of the Board of Management of Talanx AG with responsibility for the retail international division and chief executive officer of HDI International AG.
"I'd like to extend a warm welcome to our new colleagues, distribution partners and customers in Chile, Colombia and Ecuador. I have no doubt that we shall combine our know-how and global resources with the skills and experience of Liberty Seguros and thereby enhance our power of scale, innovation and competitiveness for the benefit of our distribution partners and customers on the Latin American market."
HDI International will consolidate the results of the acquired companies in the first quarter of 2024 with effect from closing of the transaction.
Nicolas Masjuan, the member of the management board of HDI International AG responsible for business in Latin America, said: "The transaction makes us the P&C market leader in Chile, significantly strengthens our market position in Colombia, allowing us to become the second largest motor insurer, and opens a new market for HDI in Ecuador. This move opens up new opportunities and positions HDI as a leading player, enabling us to offer our customers and distribution partners an even stronger value proposition over the long term."
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
