HSBC Seguros (Brazil) S.A. is to sell its subsidiary HSBC Seguros de Automoveis e Bens Ltda., a property and casualty insurance underwriting business, to HDI Seguros S.A. for $128 million.

The agreed total consideration to be paid by HDI, which is equivalent to BRL300 million in local currency, will be paid in two tranches – BRL100 million at the signing of the sale and the remainder upon completion of the transaction.

The transaction also includes a long-term operational agreement which will see HDI, an indirect subsidiary of German insurer Talanx Group, operating as the preferred provider of property and casualty insurance products to be distributed through the HSBC Bank Brazil network.

Emilson Alonso, chief executive of the HSBC Group in Brazil, said: This transaction represents a major commitment for both HSBC and Talanx. For HSBC, we are convinced that it will benefit our customers by providing them with an increasingly competitive product offering and quality service.