Allianz strengthens its presence in Brazil
Allianz has agreed to acquire automobile and other Property-Casualty operations from SulAmérica.
The acquisition will strengthen the competitive position of Allianz in Brazil, making it one of the top 3 insurers with a market share of around 15 percent in motor and 9 percent in Property-Casualty insurance and establishing Allianz as the number 2 in motor insurance. The purchase price is 3 billion Brazilian real (667 million euros).
The total premium income from the acquired entity totaled approximately 806 million euros in 2018, with 762 million euros stemming from motor and 45 million euros stemming from other Property-Casualty operations. Pro-forma premium income of the combined entity is 1.5 billion euros with 1.2 billion euros related to Motor business. With a premium volume of approximately 16 billion euros and a growth rate of 6.0 percent in 2018 alone, the market for Property-Casualty insurance in Brazil is very attractive.
The transaction enlarges the service offering for customers and provides an opportunity to grow Allianz’s geographical footprint in Brazil. It also allows further investment in digital and disruptive technologies to energize the industry and continue to deliver first-class solutions for local brokers and customers.
“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,” says Oliver Bäte, Chief Executive Officer of Allianz SE. “We are attaining a clear leadership position to effectively compete in the growing Property-Casualty market of the largest economy in South America.”
“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,” says Eduard Folch Rue, Chief Executive Officer of Allianz Seguros S.A. (Allianz Brasil). “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.”
The transaction is scheduled to be completed within the next 12 months, pending regulatory approvals.
