Spanish insurance company Mapfre has entered into an agreement to acquire motor insurance subsidiaries in Italy and Germany from UK-based insurer Direct Line Group, for around €550m.
According to the latest results from 2013, the Italy and Germany businesses added premiums of €714m and 1.6 million clients, and generate profits before taxes of €19.5m, noted Mapfre.
Mapfre chairman and CEO Antonio Huertas said: "The assets acquired in Italy and Germany are clearly a key investment for Mapfre, given that they underpin two central pillars of our global growth strategy: increasing our presence in Europe, and their alignment with our firm commitment to the digital business."
Direct Line Italy has the market share of about 28% in the country, which generates around €500m in premiums annually, with nearly one million clients.
Direct Line Germany, which ranks third in the German direct motor insurance market, has around 13% market share, and generates about €200m in premiums with about 600,000 clients.
Direct Line acquired both subsidiaries in Italy and Germany in 2001.
Mapfre, which reported net earnings of around €790m and produced revenues of €25.89bn in 2013, operates in 47 countries with about 23 million clients.
Image: Mapfre to acquire motor insurance subsidiaries from Direct Line Group. Photo: courtesy of Naypong/ FreeDigitalPhotos.net.