Swiss insurer ACE has entered into a definitive agreement to acquire the large corporate property and casualty (P&C) business of Itaú Seguros, from Itaú Unibanco, in a $685m deal.
Upon completion of the transaction, ACE believes that it will emerge as one of the largest commercial P&C insurers in Brazil, which already has a long presence in the country.
Founded in 2006, the Itaú Seguros wrote $950m in gross premiums and had an 18% market share in commercial P&C insurance industry in the country during 2013.
The business, which has been fully owned by Itaú Unibanco, Brazil’s non-government bank since 2009, focuses on offering various types of property and marine coverages for large corporate accounts.
The company has about 320 staff, a national distribution footprint and relationships with more than 600 brokers.
ACE chairman and CEO Evan Greenberg said, "The addition of Itaú Seguros’s large corporate P&C insurance business will complement and deepen our longstanding presence in Brazil in a significant way."
"This is a great opportunity to acquire from one of the region’s largest and most highly regarded banks an insurance market leader that has complementary business lines, national reach, extensive distribution, a diversified portfolio and, importantly, an experienced, professional and talented management team with an underwriting culture similar to ours."
Presently, ACE’s operations in Brazil comprise commercial and personal P&C business, an accident and health insurance business, as well as life insurance and reinsurance.
The deal currently awaiting regulatory approval, and the transaction is likely to conclude during the first quarter of 2015.
Having operations in 54 countries, ACE delivers commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance.
Image: ACE North American Headquarters: Philadelphia, Pa. – Interior. Photo courtesy of 2014 ACE.