Talanx Group, a significant European insurance entity, has cemented its position as one of the leading insurers in Latin America through the purchase of Liberty Mutual Insurance.
Liberty Mutual, headquartered in Boston, is a global insurance powerhouse, ranked fifth largest in terms of gross written premium as of 2022.
This acquisition, valued at approximately EUR 1.38bn ($1.48bn), enables Talanx to surge to third place in the region by premium income in the property/casualty business sector. The deal encompasses Liberty Seguros’ personal and small commercial business in Brazil, Chile, Colombia, and Ecuador.
Talanx, based in Hannover, Germany, is renowned for its multi-brand, predominantly B2B, insurance model. Operating under several brand names, including HDI, Hannover Re, and Ampega, Talanx has an expansive reach across over 175 countries. Conversely, Liberty Mutual holds a formidable presence in 29 countries, with Liberty Seguros subsidiaries achieving notable rankings in Brazil, Chile, and Colombia’s insurance markets.
The acquisition comes with an anticipated increase in HDI’s gross written premiums in Latin America by approximately EUR 1.7bn. Post-acquisition, HDI’s rank in the Latin American insurance market is expected to rise significantly, reaching the second position in Brazil, top place in Chile, and seventh place in Colombia. This expansion strengthens the overall diversity of Talanx’s portfolio, with an estimated 45% share in the Latin American business.
Talanx Chairman Torsten Leue lauded the acquisition, stating, “With the acquisition of these Liberty Mutual operations we are continuing our success story in Latin America. The acquisition fits seamlessly into our strategy of achieving market-leading positions in our core markets through organic and inorganic growth. We are therefore pleased to be among the top 3 in Latin America with this acquisition. The acquisition will improve our Group net income and our return on equity already in the first year after the expected closing in 2024.”
Similarly, Dr Wilm Langenbach, member of the Board of Management of Talanx AG with responsibility for the Retail International division and CEO of HDI International AG, added, “The acquisition is an important milestone in the implementation of our strategy to reach a top 5 position in our core markets across the property/casualty business by 2025.”
On the other hand, Liberty Mutual’s CEO, Tim Sweeney, conveyed, “We thank our Latin American teams of over 4,600 employees for their tremendous commitment and dedication to our business over many years. We’re confident in their future with Talanx, which shares similar core values.”
The closure of the deal is projected for the first half of 2024, contingent upon the requisite approvals from the relevant governmental and regulatory bodies.
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