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The Talanx Group rises to become the third-largest insurer by premium income in property/casualty business in Latin America through the acquisition of companies from Liberty Mutual Insurance Inc. The Retail International division of the Talanx Group has signed a purchase agreement to acquire the Liberty Seguros personal and small commercial business in Brazil, Chile, Colombia, and Ecuador.
HDI is expected to increase its gross written premiums (IFRS 4) 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 per cent. The purchase price is expected to be approximately EUR 1.38 billion (approximately USD 1.48 billion) at the closing date of the transaction, subject to customary purchase price adjustment mechanisms.
“With the acquisition of these Liberty Mutual operations we are continuing our success story in Latin America,” says Torsten Leue, Chairman of the Board of Management of Talanx AG. “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.”
Dr Wilm Langenbach, Member of the Board of Management of Talanx AG with responsibility for the Retail International division and Chief Executive Officer of HDI International AG, says: “The acquisition is an important milestone in the implementation of our strategy to reach a top 5 position in our core markets across the property/casualty business by 2025, to further diversify our portfolio and to strengthen our technical excellence. In addition, the acquisitions will allow us to achieve significant opportunities with our existing business in Brazil, Chile, and Colombia. I am very pleased that our future Liberty colleagues will strengthen us with their outstanding expertise and experience in Latin America.”
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