The acquisition of SulAmérica’s business units represents the largest investment for Allianz in Brazil
Allianz has wrapped up its previously announced BRL3.2bn (€500m) acquisition of Brazilian insurance company SulAmérica’s automobile and other property-casualty (P&C) operations.
The German insurance group announced the deal in August 2019 in a move to become one of the top three insurers in Brazil. The company at that time said that the acquisition will help it capture a market share of around 15% in motor and 9% in property-casualty insurance in the country.
Furthermore, the acquisition will help the German group in expanding its service offering for customers apart from further growing its geographical footprint in the region.
The deal is said to represent Allianz’s largest investment in Brazil.
Allianz board of management member and chief business transformation officer handling the insurance Ibero-LatAm region Iván de la Sota said: “With SulAmérica, we attain a leading position in the growing Property-Casualty market in the largest economy of South America. It is also a great opportunity to deploy digital technologies and deliver first-class solutions for local brokers and customers.”
Besides business lines, the German insurer is also said to incorporate intellectual capital, technological systems, distribution channels in addition to all other assets and liabilities.
Allianz also said that the combined intelligence in automobile and other property-casualty activities following the acquisition is anticipated to boost business diversification opportunities by cross-selling with the newly added customer base.
Allianz Brazil CEO comments on closing the transaction with SulAmérica
Allianz Brazil CEO Eduard Folch said: “In a challenging moment, professionals from both sides have shown exemplary quality, professionalism and performance in this operation. This allowed to complete the transaction ahead of the deadline, consolidating the brand as a reference in Brazil.”
Earlier this year, the German insurance group entered into a deal worth up to €377m with Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) to establish a bancassurance joint venture (JV) in Spain.
The bancassurance deal has a long-term exclusive distribution agreement for the sale of property-casualty insurance products through BBVA’s banking network in the country.