Italian insurance major Generali has agreed to acquire Portugal-based Seguradoras Unidas and AdvanceCare from Calm Eagle Holdings for €600m (£539m).
Subject to closing conditions, Generali has agreed to pay €510m (£458m) for Seguradoras Unidas and €90m (£81m) for AdvanceCare.
Seguradoras Unidas is one of the largest non-life insurance operators in the country with a 15.5% market share. It also operates in the life segment and claims to have posted total gross insurance premiums of about €800m (£719m) in 2018.
With the acquisition, Generali is due to become the second largest non-life player with an 18.7% market share. It can also leverage Seguradoras Unidas’ agency network to develop protection products in the life insurance segment.
AdvanceCare is a service platform that operates primarily within the healthcare sector. It also manages medical service outsourcing. The company is touted to be the country’s one of the largest private players, with a market share of around 30%.
With the AdvanceCare acquisition, Generali will acquire a scalable platform and expertise in third-party health services. Furthermore, the deal is in line with Generali’s strategy to increase service-based revenues.
The Italian insurance firm said that the two deals are in-line with its three-year Generali 2021 strategy to increase service-based revenues.
Generali International CEO Jaime Anchústegui Melgarejo said: “With the acquisition of Seguradoras Unidas, Generali will become the second largest group in the Portuguese non-life segment.
“The transaction will enable us to optimise our strategic positioning in the country, to capture future growth opportunities, to achieve significant cost synergies through the integration of Generali Portugal and Seguradoras Unidas and to ensure the operational solidity of Europ Assistance in the Portuguese market.
“The acquisition of AdvanceCare, which has a diversified institutional customer base, will also help the Group to acquire strong know-how in the healthcare sector and a scalable platform to develop in other countries. These acquisitions are an important step in the implementation of the Group’s three-year strategy, which aims to strengthen our leadership in Europe.”
In May this year, the company agreed to sell its Life run-off portfolio of its UK Branch to a subsidiary of Reinsurance Group of America for about €680m (£611m).