Germany's Talanx to buy Latin American operations of U.S.-based Liberty Mutual Insurance
HDI International, a unit of Talanx, Germany's third-largest insurance group, announced it entered into an agreement to acquire the Latin American operations of U.S.-based Liberty Mutual Insurance, for a total consideration of EUR 1.4bn (USD 1.5bn), subject to adjustments. The transaction involves the takeover of Liberty Seguros personal and small commercial in Brazil, Chile, Colombia, and Ecuador.
This strategic move positions the Talanx Group as the third-largest insurer in Latin America in terms of premium income within the property and casualty sector. The acquisition represents a significant milestone in the company's strategy to achieve a prominent position among the top 5 insurers in its core markets within these segments by the year 2025.
Furthermore, this acquisition serves to enhance the overall portfolio diversification of Talanx Group's division, with Latin American business accounting for approximately 45% of the division's operations. In addition to Europe, Latin America stands as one of the key regions in Talanx's retail business, highlighting its significance within the company's strategic focus.
The transaction encompasses the direct insurance business of Liberty Specialty Markets in Brazil, Chile, and Colombia. It excludes Liberty Specialty Markets' facultative reinsurance, Liberty Mutual Reinsurance's treaty reinsurance, and Liberty Mutual Surety businesses, which will continue to operate in Brazil, Chile, and Colombia.
As a result of this transaction, HDI, which is already represented in Brazil, Chile and Colombia through its subsidiaries, will achieve a substantial increase in its gross written premiums in Latin America. This acquisition positions HDI at second place in Brazil, first rank in Chile, and seventh rank in Colombia on a pro forma basis. The operations in the four countries generated a gross premium volume of EUR 1.7bn (USD 1.8bn) in 2022 and have a team of over 4,600 employees.
With operations spanning across 29 countries, Liberty Mutual stands as one of the largest insurance companies globally in terms of insurance revenue. On the other hand, Talanx is one of the major groups in Europe, boasting a wide presence across more than 175 countries worldwide.
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