The insurance group Talanx is strengthening its business in Latin America with a multi-billion acquisition. The company is taking over the private customer business in Brazil, Chile, Colombia and Ecuador from the US insurer Liberty Mutual Insurance for the equivalent of around 1.38 billion euros, the MDAX group announced on Saturday in Hanover. The subsidiaries taken over by Liberty Mutual, which are managed under the name Liberty Seguros, together with 4,600 employees have a gross premium volume of the equivalent of 1.7 billion euros.
With the acquisition, Talanx is significantly expanding its presence in Latin America. In 2022, the subsidiary HDI International achieved a premium volume of around 1.4 billion euros in Brazil, Chile and Colombia. According to Talanx, the acquisition of the Liberty Mutual business has made it number one in property insurance in Chile and number two in Brazil.
“The acquisition fits seamlessly into our strategy of gaining market-leading positions in our core markets through organic and inorganic growth,” said Talanx CEO Torsten Leue. The acquisition will improve net income and return on equity in the first year after closing, which is expected in the first half of 2024.
In the future, according to the information, 45 percent of the international retail and corporate insurance division will come from Latin America. Completion of the transaction is still subject to antitrust approvals.
The Talanx share temporarily gained 1.33 percent via XETRA to EUR 50.20.
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