ACE announced that it has received all regulatory approvals needed for closing its acquisition of the large corporate property and casualty (P&C) business of Itaú Seguros, from Itaú Unibanco, a transaction that will make ACE the largest commercial P&C insurer in Brazil.
The acquisition, announced in July 2014 and valued at approximately $630m at current exchange rates, is now expected to close on October 31, 2014, well ahead of the previously announced timeframe. The transaction is expected to be accretive to earnings immediately.
The large corporate P&C insurance business of Itaú Seguros is the market leader in Brazil, focusing on a broad array of property and marine coverages for Brazil’s largest and most sophisticated companies. With a national presence, relationships with more than 600 brokers and 320 employees, the business had approximately $950 million in gross premiums written in 2013.
"Itaú’s large corporate P&C insurance business complements and deepens ACE’s longstanding presence in Brazil in a significant way," said Evan G. Greenberg, Chairman and Chief Executive Officer, ACE Limited. "The business has national reach, extensive distribution, a diversified portfolio and, importantly, an experienced, professional and talented management team with an underwriting culture similar to ours. The combination of our complementary skills, talent and capabilities should prove powerful. We look forward to welcoming our new colleagues in Brazil to the ACE family."
ACE’s operations in Brazil currently include an established commercial and personal lines P&C business, a significant accident and health insurance business, as well as life insurance and reinsurance.
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients.