The deal is being executed by the German insurer’s subsidiary HDI Assicurazioni
Talanx's HDI unit to acquire Amissima Assicurazioni. (Credit: Talanx AG)
German insurance company Talanx Group is set to expand its business in Italy by acquiring 100% of non-life insurer Amissima Assicurazioni from Amissima for an undisclosed price.
The acquisition is being executed by HDI Assicurazioni, a subsidiary of HDI International, which is the retail international unit of the German firm.
Amissima is owned indirectly by investment funds managed by affiliates of US-based Apollo Global Management.
How the acquisition of Amissima Assicurazioni will help HDI
Talanx said that the acquisition by HDI will boost the latter’s diversification by growing its non-life insurance business.
Besides, the acquisition will increase HDI’s Italian premium volume by nearly €300m to about €2bn. Of this, around 30% will be attributable to the domestic non-life insurance business, said Talanx.
Following the acquisition of Amissima Assicurazioni, HDI will move up from the 17th place to the 11th place among the non-life insurers in Italy, on the basis of market share.
Talanx board of management member Sven Fokkema said: “This bolt-on acquisition allows us to diversify our business activities by expanding our non-life insurance operations. It is in line with our strategy and will further enhance our position on the Italian market.
“Amissima is a perfect fit, since we want to expand our non-life insurance business. We are delighted to be acquiring this company, which has a great deal of potential and complements our activities well.”
Established in 1920, Amissima has a premium volume of €293m. It has a workforce of around 300 people. HDI Assicurazioni, which employs nearly 400 people, had a premium volume of nearly €1.7bn in 2019.
The deal does not include Amissima Vita, the life insurance business of Amissima.
Apollo Global Management senior advisor for Italy and Amissima Insurance Group president Andrea Moneta said: “The acquisition of Amissima Assicurazioni by the Talanx Group, leader in the European insurance market, testifies to the important restructuring and relaunching of the company carried out by the management and all colleagues under the management of Apollo.
“We are confident that the contribution of Amissima Assicurazioni will allow the new owner to reach further important goals in the Italian market.”
Completion of the deal, which will be subject to approval from relevant supervisory authorities, is likely to occur in the first quarter of 2021.