Germany’s Talanx Group, the parent of global reinsurer Hannover Re, has completed the process of acquiring the business of Liberty Seguros with retail customers and small to mid-sized enterprises in Brazil, in line with the company’s announcement earlier this year.
The acquisition was done through HDI International, a subsidiary of Talanx Group. It takes HDI to the position of the second-largest in Brazil’s property and casualty insurance market.
The transaction also includes Liberty Specialty Market’s direct insurance business in Brazil.
Based on the results for the full year 2022, HDI expects gross written premiums in Brazil to increase by at least €1.1 billion following the deal.
Dr. Wilm Langenbach, a member of Talanx AG’s Board of Management responsible for the Retail International division and Chief Executive Officer of HDI International AG, commented: “We are delighted over the quick and successful closing of the transaction in Brazil. This is a first decisive step in breaking into the top 2 P&C insurers in Latin America.
“I would like to extend a warm welcome to our new colleagues, distribution partners and customers and I appreciate the trust they show in us. The combined scale, capabilities and talent will enable us to deliver an even stronger value proposition for our distribution partners and customers.”
HDI International will consolidate the results of the acquired entity with effect from the closing of the acquisition for Q4 2023.
The purchase of the other Liberty Mutual companies in Chile, Colombia and Ecuador remains subject to satisfaction of customary closing conditions, including receipt of regulatory approvals, and is expected to close in the first half of 2024.
Nicolas Masjuan, Head of Latin America at HDI International, added: “With this transaction, we are becoming the second largest P&C insurer in Brazil. We are excited to further enhance our position and our business model through the combination of HDI and Liberty in Brazil for the benefit of our partners and clients.”
