Talanx buys Liberty Mutual Latin American entities for $1.48 billion
European insurance group Talanx Group is acquiring companies from Liberty Mutual.
The retail international division of Talanx Group, HDI, has signed a purchase agreement to acquire the Liberty Seguros personal and small commercial business in Brazil, Chile, Colombia, and Ecuador. The purchase price is expected to be approximately $1.48 billion at the closing date of the transaction, subject to customary purchase price adjustment mechanisms.
HDI is expected to increase its gross written premiums in Latin America by around EUR 1.7 billion. With this transaction, HDI reaches pro forma rank 2 in Brazil, rank 1 in Chile, and rank 7 in Colombia. Furthermore, the division’s overall portfolio will be significantly better diversified as a result of the increase in Latin American business to approximately 45%. HDI will move up to third place in the property and casualty insurance market in Latin America through these acquisitions.
The transaction includes Liberty Specialty Markets direct insurance business in Brazil, Chile and Colombia. The transaction does not include Liberty Specialty Markets facultative reinsurance, Liberty Mutual Reinsurance treaty reinsurance and Liberty Mutual Surety businesses which will continue to operate in Brazil, Chile and Colombia.
“With the acquisition of these Liberty Mutual operations we are continuing our success story in Latin America. The acquisition fits seamlessly into our strategy of achieving market-leading positions in our core markets through organic and inorganic growth. Alongside Europe, Latin America is one of our core regions in the retail business. We are therefore pleased to be among the top 3 in Latin America with this acquisition. The acquisition will improve our Group net income and our return on equity already in the first year after the expected closing in 2024. The acquisition will further strengthen our primary insurance business and our diversification across business lines.” – Torsten Leue, chairman of the board of management of Talanx AG.
“In a world that is rapidly changing, sharpened operational focus across our channels, products and markets is becoming increasingly important for long-term success and will ensure we deliver exceptional value to our customers, brokers, agents, partners, employees, and the communities we serve. We thank our Latin American teams of over 4,600 employees for their tremendous commitment and dedication to our business over many years. We’re confident in their future with Talanx, which shares similar core values.” – Tim Sweeney, president and CEO of Liberty Mutual.