HDI buys Liberty Seguros in Latin America for BRL 7 billion – 05/27/2023 – Market

HDI Seguros, through its parent company Talanx Group, announced this Saturday (27) the signing of an agreement to purchase the operations of Liberty Seguros in Latin America, which encompasses activities in Brazil, Chile, Colombia and Ecuador. The value of the transaction is around 1.3 billion euros (R$ 6.97 billion).

The negotiation involves the entire operation of the Liberty group in these countries, as well as the assistance company Fácil Assist and the insurance brand Aliro.

With the transaction, HDI increases its business by around 45% in Latin America and should increase its gross premium by approximately 1.7 billion euros (R$ 9.1 billion).

“Brazil is a core country for the Talanx Group, of which HDI Seguros is a member, and this acquisition of Liberty Seguros’ businesses in Latin America is part of a very clear project for the company’s growth in the country,” said Eduardo Dal Ri , CEO of HDI Seguros, in a note.

“Our ultimate goal is to offer even more competitive products, with one of the broadest portfolios on the market”, added the executive.

With approximately 1,300 employees, HDI generated gross premiums of approximately R$4.5 billion in Brazil in 2022. After the acquisition of Liberty and the retail business lines of Sompo Seguros, in June 2022, the company reaches the second placement in the ranking of the largest insurance companies in the country, with written premium estimated at 13.3 billion. The market leader is Porto Seguro, with a written premium of R$ 22.5 billion last year.

“The acquisition fits perfectly with our strategy to achieve leading positions in our key markets through organic and inorganic growth,” said Torsten Leue, chairman of Talanx’s board of directors, in a note.

Along with Europe, Latin America is one of the key regions in HDI’s retail sector.

Leue said the acquisition is expected to have a positive impact on the operation’s profit and profitability in the first year after the deal closes, expected in the first half of 2024.

“In a rapidly changing world, enhanced operational focus across our channels, products and markets is becoming increasingly important to long-term success,” said Tim Sweeney, President and CEO of Liberty Mutual Insurance.

Until the completion of the transaction, subject to regulatory approvals by Cade (Administrative Council for Economic Defense) and Susep (Superintendence of Private Insurance), HDI and Liberty will continue their work without changes in product and service offerings.

Commercial relations also remain unchanged and the management of the insurers continues independently.