Talanx Group, the German parent company of global reinsurer Hannover Re, has successfully finalised the acquisition of Liberty Seguros in Brazil.
The strategic move, in line with the company’s earlier announcement this year, involves taking over the business of Liberty Seguros, focusing on retail customers and small to mid-sized enterprises in the Brazilian market.
The acquisition was executed through HDI International, a subsidiary of the Talanx Group, propelling HDI to become the second-largest player in Brazil’s property and casualty insurance market. The transaction also encompasses the direct insurance business of Liberty Specialty Market in Brazil.
Anticipating positive financial outcomes, HDI projects a significant increase in gross written premiums in Brazil by at least €1.1 billion for the full year 2022, following the successful completion of the deal.
Starting from the completion of the acquisition in Q4 2023, HDI International will integrate the outcomes of the acquired entity into its consolidated results. Meanwhile, the acquisition of other Liberty Mutual companies in Chile, Colombia, and Ecuador is contingent upon meeting standard closing conditions, such as obtaining regulatory approvals. This process is anticipated to be finalized in the first half of 2024.
Dr. Wilm Langenbach, a key figure in Talanx AG’s Board of Management overseeing the Retail International division and serving as the Chief Executive Officer of HDI International AG, expressed delight at the swift and successful conclusion of the transaction in Brazil. He highlighted this achievement as a pivotal step towards establishing HDI as one of the top two property and casualty insurers in Latin America.
He said: “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.”
Nicolas Masjuan, Head of Latin America at HDI International, said: “With this transaction, we are becoming the second largest P&C insurer in Brazil.”
He added: “ 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.”
