Allianz, a German multinational financial services company, has entered into an agreement with Brazilian insurance company SulAmérica to acquire the latter’s automobile and other property-casualty operations for €667 million.

Through the acquisition, Allianz will grow its geographical presence in Brazil, becoming one of the top three insurers with a market share of around 15% in motor and 9% property-casualty insurance.

In 2018, the acquired entity generated the total premium income of around €806 million, with €45 million related to other property-casualty operations and €62 million related to motor.

The combined entity’s pro-forma premium income stood at €1.5 billion with €1.2 billion coming from motor business.

Oliver Bäte – CEO of Allianz said: “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.

“We are attaining a clear leadership position to effectively compete in the growing Property-Casualty market of the largest economy in South America.”

The acquisition will allow Allianz further increase the service offering for customers and local brokers, and invest in digital and disruptive technologies.

Eduard Folch Rue – CEO of Allianz Seguros (Allianz Brasil) said: “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.”

Subject to regulatory approvals, the transaction is expected to be completed within the next 12 months.

Property-casualty insurance in Brazil registered a premium volume of approximately €16 billion and a growth rate of 6% in 2018.

  Allianz, Brazil, Eduard Folch Rue, Insurance acquisition news, Insurance industry news, Oliver Bäte, SulAmérica