Allianz is purchasing the automobile and property insurance portfolio of Brazilian insurer SulAmérica for approximately US$741 million.

Global Fleet reported that the deal is Allianz’s largest investment in Brazil to date. The deal is expected to close within 12 months, subject to approval from regulatory agencies and other compliance requirements.

Until the transaction closes, both Allianz and SulAmérica will lead their business lines apart from each other; SulAmérica’s interactions with its current stakeholders (clients, insurance brokers and insurance advisors, investors, suppliers and employees) will continue as is.

After the deal closes, Allianz will take control of the fully-functioning, standalone company, dubbed NewCo. This includes all related assets liabilities, distribution network, and employees of the auto and P&C business.

Allianz is projecting that it would be the second largest provider of auto insurance in Brazil once the transaction closes.