Helvetia acquires majority stake in Caser
Swiss insurer Helvetia is acquiring a majority holding in Spanish insurer Caser . As a result, Helvetia will “considerably increase its market share in Spain, further strengthen its attractive non-life business and expand its distribution capabilities.” Helvetia expects that it will ultimately acquire a holding of up to 70% in Caser for around €780 million. Caser will continue to operate with its existing brand and so will Helvetia which has operations in Spain.
In 2018, Caser generated revenues of €1,639 million and a profit of €87 million (basis: local GAAP). Some 62% of revenues can be attributed to the non-life business. Together, Caser and Helvetia are the seventh largest provider in the non-life business on the Spanish market. The acquisition allows Helvetia to significantly strengthen its core business and the importance of the attractive non-life business across the entire Helvetia Group. Helvetia will also be able to benefit from profitable new sales channels in banking distribution. Caser has distribution agreements with Ibercaja, Unicaja and Liberbank as well as with other banks, which will be maintained following the deal. Ibercaja, Unicaja and Liberbank are present across Spain with around 3,100 branches, serving more than 7 million customers.
Caser also provides Helvetia with the opportunity to tap into new business models and thus further diversify its business. In 2018, Caser generated 9% of its revenues through fee income from attractive eco-systems in the areas of health and old-age care, which are closely linked to the life and pension businesses. Among other things, Caser operates nursing homes and hospitals, which offer growth opportunities given demographic developments. Caser also provides various services for real estate.
“The acquisition of Caser perfectly fits Helvetia’s strategy. Our business in Spain has performed very well in recent years and will now be strengthened further by this transaction, which will also substantially increase the importance of our European activities. Both companies complement each other outstandingly, including from a cultural perspective. Caser will also immediately make a significant profit contribution. Caser is very successful on the Spanish market. This market is very attractive and is growing strongly. We have repeatedly emphasized that an acquisition in Spain would be a very interesting proposition and it is now possible for us to take this opportunity that has opened up.” – Philipp Gmür, Group CEO of Helvetia.
