French insurer Axa has signed an agreement with Brazil-based SulAmérica to acquire its large industrial and commercial risks insurance subsidiary, SulAmérica Companhia de Seguros Gerais, for around BRL135m (€40m).
The acquired business is involved in marine hull, marine cargo and property business, which will expand Axa’s operations in Brazil.
Axa Corporate Solutions CEO Philippe Rocard said: "This acquisition is a great accelerator for Axa Corporate Solutions in Brazil and confirms our long term aspiration to benefit from this fast-growing insurance market, in line with our Ambition Axa strategy.
"It also reinforces our ability to serve our global clients in Brazil, by leveraging both a strong platform and the skills of very reputable teams."
The acquired operations will be included in the Axa Corporate Solutions Brazil and Latin America that is expected to enhance the position of the company in the Rio, Sao Paulo and South Brazil regions.
SulAmérica’s large industrial and commercial risks insurance operations have reported a 12% average annual growth in terms of revenues over the past two years reaching BRL220m (€ 70m) in 2014, noted Axa.
Subject to customary closing conditions including the receipt of regulatory and antitrust approval, the deal is expected to be completed in the fourth quarter of this year.
Image: Axa building in Brno, Czech Republic. Photo: courtesy of Frettie.