Allianza acquires SulAmérica's auto coverage
August 26, 2019
German insurer adds $900m in annual premiums in Brazil
Germany's Allianz has acquired automobile and other property and casualty (P&C) lines from the Brazilian insurance company SulAmérica for BRL3bn ($728m).
SulAmérica earned €806m ($901m) in premiums from the product lines in 2018, including €762m from auto insurance and and €45m from other P&C products, Allianz said in a statement.
Allianz said its subsidiary in Brazil will have €1.5bn in premiums, including €1.2bn from auto coverage, after the acquisition.
The German insurance company made an offer for SulAmérica's auto insurance business in early July. It now expects to close the deal within a year, pending regulatory approval.
Until then, the two businesses will operate separately, SulAmérica said in a statement.
SulAmérica also said it sold the auto insurance portfolio to focus on its health, dental, life, pension and asset management businesses. Those five segments accounted for 85% of the company's revenue in the first half of 2019, it said.
SulAmérica added that it will use the money from the sale for "organic and inorganic growth opportunities" in the future.