Hannover Re parent Talanx will buy 90 percent stake in Italian insurer Generali’s Colombian business to further expand its presence in the Latin American region.
“For Talanx, the acquisition of Generali Colombia is a strategic step to open up the fifth largest Latin American market. For us, this means further strengthening our position in the target region,” said Torsten Leue, chairman of the board of management at Talanx International AG.
The acquired companies, Generali Colombia Seguros Generales and its life insurance subsidiary Generali Colombia Vida Compañia de Seguros, with their eight branch offices in the country and headquarters in Bogotá, have been operating successfully in the Colombian market since 1952. Jointly they achieved gross premium volumes of around €million (IFRS) and an EBIT of around €2 million in 2016. Some 70 percent of the portfolio relates to the property insurance business and around 30 percent to life insurance.
The European insurance group has announced that it is entering the Colombian insurance market following the transaction, which is expected to close by the end of the year.
Talanx is currently represented in six Latin American countries through its HDI brand. In the target region, the group achieved gross premium income of €1.5 billion in 2016.
Leue added: “The companies are well positioned and have strong management, which will contribute to the Talanx Group’s continued growth and success. I am very much looking forward to working with them.”
The acquisition is subject to approval by the Colombian regulatory authority.
Source: Intelligent Insurer