Talanx continues expansion by acquiring Liberty Mutual businesses

Deal makes group one of the top insurers in Latin America

Talanx continues expansion by acquiring Liberty Mutual businesses

Insurance News

By Roxanne Libatique

Major European insurance group Talanx Group (Talanx) has acquired companies from Liberty Mutual Insurance (Liberty Mutual), one of the largest property and casualty (P&C) insurers across the globe.

Talanx confirmed that its retail international division has signed a purchase agreement to acquire Liberty Seguros personal and small commercial business in Brazil, Chile, Colombia, and Ecuador.

The acquisition is expected to make Talanx the third-largest insurer by premium income in P&C business in Latin America. Specifically, the deal is expected to increase the group's gross written premiums (IFRS 4) in Latin America by approximately EUR 1.7 billion, helping it reach pro forma rank 2 in Brazil, rank 1 in Chile, and rank 7 in Colombia.

The deal will also significantly improve the division's overall portfolio due to the increase in Latin American business to around 45%.

Insurance bosses welcome deal

Torsten Leue, chairman of the board of management of Talanx AG, said the acquisition fits into the group's strategy of achieving market-leading positions in its core markets through organic and inorganic growth.

“With the acquisition of these Liberty Mutual operations, we are continuing our success story in Latin America,” Leue said. “Alongside Europe, Latin America is one of our core regions in the retail business. 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 in the first year after the expected closing in 2024. The acquisition will further strengthen our primary insurance business and our diversification across business lines.”

Dr Wilm Langenbach, member of the board of management of Talanx AG who is responsible for the retail international division and the chief executive officer of HDI International AG, said the deal will enable the group to achieve opportunities with its existing business in Brazil, Chile, and Colombia.

“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 to further diversify our portfolio and to strengthen our technical excellence,” Dr Langenbach added. “I am very pleased that our future Liberty colleagues will strengthen us with their outstanding expertise and experience in Latin America.”

Tim Sweeney, president and chief executive officer of Liberty Mutual, commented: “In a world that is rapidly changing, sharpened operational focus across our channels, products, and markets is becoming increasingly important for long-term success and will ensure we deliver exceptional value to our customers, brokers, agents, partners, employees, and the communities we serve. 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 purchase price is approximately EUR 1.38 billion (approximately USD 1.48 billion) at the closing date of the transaction, subject to customary purchase price adjustment mechanisms.

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