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Allianz strengthens its presence in Brazil


Munich/Sao Paulo – WEBWIRE
  • Allianz to acquire automobile and other Property-Casualty operations from SulAmérica and become one of the top 3 insurers in Property-Casualty insurance in Brazil.
  • The transaction to position Allianz as the number 2 in automobile insurance.
  • The acquisition supports Allianz’s growth strategy in key markets.
  • Pending regulatory approvals, closing is expected within the next 12 months.


Allianz has agreed to acquire automobile and other Property-Casualty operations from SulAmérica.

The acquisition will strengthen the competitive position of Allianz in Brazil, making it one of the top 3 insurers with a market share of around 15 percent in motor and 9 percent in Property-Casualty insurance and establishing Allianz as the number 2 in motor insurance. The purchase price is 3 billion Brazilian real (667 million euros).

The total premium income from the acquired entity totaled approximately 806 million euros in 2018, with 762 million euros stemming from motor and 45 million euros stemming from other Property-Casualty operations. Pro-forma premium income of the combined entity is 1.5 billion euros with 1.2 billion euros related to Motor business. With a premium volume of approximately 16 billion euros and a growth rate of 6.0 percent in 2018 alone, the market for Property-Casualty insurance in Brazil is very attractive.

The transaction enlarges the service offering for customers and provides an opportunity to grow Allianz’s geographical footprint in Brazil. It also allows further investment in digital and disruptive technologies to energize the industry and continue to deliver first-class solutions for local brokers and customers.

“With the acquisition of SulAmérica’s Property-Casualty operations, we have taken another major step in the strategic repositioning of our Latin American insurance businesses,” says Oliver Bäte, Chief Executive Officer of Allianz SE. “We are attaining a clear leadership position to effectively compete in the growing Property-Casualty market of the largest economy in South America.”

“We are creating a new Allianz combining the best people of both sides and forming an outstanding team that will embrace the opportunities of the Brazilian market with full commitment and confidence,” says Eduard Folch Rue, Chief Executive Officer of Allianz Seguros S.A. (Allianz Brasil). “Our trademark will be the innovation, digitalization, and the service to our customers through our main partners, the brokers and advisors. We will combine the local know-how of SulAmérica with all the strengths that an international Group like Allianz has.”

The transaction is scheduled to be completed within the next 12 months, pending regulatory approvals.

About Allianz Seguros S.A.

In Brazil for 115 years, Allianz Seguros has been active in Property & Casualty and health insurance and is present nationwide through, more than 1,000 employees, 48 branches and approximately 15,000 insurance brokers, which are the company’s main business partners. With the premise of developing long-term actions, both in our business and in the social field, 25 years ago a group of employees created ABA – Charitable Association of the Employees from Allianz Seguros. During this period, more than 7,000 children and adolescents from the Santa Rita Community were attended by ABA, trough complementary activities to formal education, such as arts, sports and digital inclusion. Allianz Seguros lends its name to the Allianz Parque, the most modern multipurpose arena in the country. Since its launch in November 2014, it has hosted over 6.5 million people.

About Allianz

The Allianz Group is one of the world’s leading insurers and asset managers with more than 92 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 673 billion euros on behalf of its insurance customers. Furthermore our asset managers PIMCO and Allianz Global Investors manage more than 1.4 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we hold the leading position for insurers in the Dow Jones Sustainability Index. In 2018, over 142,000 employees in more than 70 countries achieved total revenues of 131 billion euros and an operating profit of 11.5 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below.

Disclaimer

Cautionary note regarding forward-looking statements

This document includes forward-looking statements, such as prospects or expectations, that are based on management’s current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group’s core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.

No duty to update

The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law. 

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Further information

Allianz Investor Relations


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