Generali, which has been present in Portugal since 1942, is getting its hands on two major assets in the country.
The Italian insurance giant has signed an agreement to acquire Portugal’s second largest non-life business operator Seguradoras Unidas as well as leading medical service outsourcing manager AdvanceCare from Calm Eagle Holdings S.á r.l. and Calm Eagle Parent Holdings II S.á r.l. for €510 million (around $574 million) and €90 million (around $101 million), respectively.
Currently Generali operates in the Portuguese market through life insurer Generali Vida Companhia de Seguros, non-life company Generali Companhia de Seguros, and assistance firm Europ Assistance Portugal.
“With the acquisition of Seguradoras Unidas, Generali will become the second largest group in the Portuguese non-life segment,” said Generali’s international chief executive Jaime Anchústegui Melgarejo.
Lifting the lid on the move – which is consistent with the group’s capital redeployment strategy in disciplined mergers and acquisitions to support profitable growth – Melgarejo explained: “The transaction will enable us to optimize our strategic positioning in the country, to capture future growth opportunities, to achieve significant cost synergies through the integration of Generali Portugal and Seguradoras Unidas, and to ensure the operational solidity of Europ Assistance in the Portuguese market.
“The acquisition of AdvanceCare, which has a diversified institutional customer base, will also help the group to acquire strong know-how in the healthcare sector and a scalable platform to develop in other countries. These acquisitions are an important step in the implementation of the group’s three-year strategy, which aims to strengthen our leadership in Europe.”
The entities selling the assets are majority owned by investment funds managed by certain affiliates of Apollo Global Management, LLC. The final consideration is subject to closing adjustments.