German insurance giant Allianz SE is in advanced discussions to acquire Lisbon-based non-life insurer Caravela Seguros, after submitting a formal offer for the company, according to a Bloomberg News report, citing people familiar with the matter.
Allianz is currently discussing a potential acquisition of Caravela Seguros with the company's shareholders, the sources said. Deliberations are ongoing and talks may still not result in an offer, they said.
The deal, if completed, would mark a significant expansion of Allianz's footprint in the Portuguese non-life market. According to Portuguese financial outlet ECO, the transaction would lift Allianz from fourth place among insurers in Portugal, boosting its overall market share from 1.3% to 6.8% based on 2025 figures. In non-life lines specifically, a combined Allianz and Caravela would command an 11% market share, with combined premiums exceeding €1.15 billion.
Established under the Caravela name and brand in 2014, the company has collected more than €212 million in premiums in 2025, up from €187 million the previous year, which represents growth of approximately 17%. The insurer is concentrated on motor and accident lines, two segments considered attractive in the Portuguese market.
Toscafund, which owns a 48% stake in Caravela, has hired Mediobanca to advise on a potential sale of its holding. Caravela's remaining shareholders — a group of more than 20 investors — are also weighing a sale of their stakes, according to the report.
Toscafund is a London-based private equity, private debt and hedge fund management firm that employs long/short equity and relative value strategies focused on the financial sector across Europe, the UK and globally. Founded by Martin Hughes in 2000, Toscafund manages approximately $4 billion in assets under management and is authorised and regulated by the FCA.
The Lisbon-based insurer may be worth approximately €150 million, according to one person familiar with the matter. Allianz is understood to be seeking to acquire 100% of the company's share capital, which would require all investor groups to divest their holdings.
The Caravela deal mirrors a strategy Allianz has already executed with notable success in the UK, where it used targeted M&A to rapidly consolidate its market position. In January 2020, Allianz completed the acquisition of 100% of LV= General Insurance Group and the General Insurance division of Legal & General, positioning Allianz Holdings plc as the number two general insurer in the UK with a gross written premium income of over £4 billion and a market share of 9%. Allianz UK has continued to build on that platform, most recently signing a five-year partnership with connected motor MGA Ticker in November 2025, providing underwriting and claims support across products for young drivers, older drivers, drivers with convictions and low-mileage motorists.
The Portuguese move comes against a backdrop of mounting acquisition firepower at group level. Bank of America analysts estimated that Allianz has around €10 billion of M&A capacity to deploy over its 2025–27 strategic plan, with bolt-on deals potentially boosting earnings per share by approximately 10%.
Furthermore, the Caravela talks sit squarely within a broader acceleration of European insurance consolidation. According to Fitch Ratings, M&A activity among European insurers is likely to pick up in 2026 as softer non-life pricing, slower economic growth and stabilising investment yields limit prospects for organic earnings growth. Fitch noted that consolidation has often been led by strongly capitalised groups using surplus capital to consolidate specialist niches — a pattern exemplified by Aviva's acquisition of Direct Line in 2025.
Fitch added that acquisitions could enhance business profiles through greater diversification and stronger competitive positioning, with transactions helping insurers improve scale, cost-efficiency and access to new technology, although execution and integration risks remain key considerations, particularly where deals are debt-funded.
Allianz reported a net profit attributable to shareholders of €10.8 billion for 2025, an 8.5% rise from the prior year, with operating profit reaching a record €17.4 billion, up 8.4% year-on-year. Growth was primarily driven by the property and casualty segment.
The group serves around 97 million private and corporate customers across almost 70 countries.
