Liberty Mutual sells Latin America personal, small commercial businesses for $1.48B
The deal will make HDI International the third-largest player in the Latin American P&C market.
Liberty Mutual Insurance Inc. is selling its Latin American personal and small commercial businesses to The Talanx Group subsidiary HDI International AG in a deal valued at approximately $1.48 billion. The transaction is expected to close in the first half of 2024, Talanx reported.
Included in the deal are Liberty Seguros’ personal and small commercial businesses in Brazil, Chile, Columbia and Ecuador, according to the purchasing firm. Also included in the transaction is Liberty Specialty Markets’ direct insurance business in Brazil, Chile and Columbia.
Liberty Seguros had a top 5 position in Brazil’s auto insurance market and a top 10 position in the Brazilian overall P&C market during 2022, according to Talanx, which reported the company generated around $1.17 billion in gross written premium this past year.
Following the deal closing, HDI International will become the third-largest player in the Latin American P&C market.
“With the acquisition of these Liberty Mutual operations we are continuing our success story in Latin America,” Torsten Leue, chairman of the board of management of Talanx AG, said in a release. “The acquisition fits seamlessly into our strategy of achieving market-leading positions in our core markets through organic and inorganic growth. Alongside Europe, Latin America is one of our core regions in the retail business.”
Leue said the company expects to see a return on its investment in the first year after the expected closing.
“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,” Wilm Langenbach, CEO of HDI International, said in a release. “In addition, the acquisitions will allow us to achieve significant opportunities with our existing business in Brazil, Chile and Colombia.”
In 2022, Liberty Mutual was reportedly mulling the sale of its businesses in Spain, Portugal and Ireland in a divestment package estimated to be valued at more than $1 billion.
At the same time it has been divesting international business, Liberty Mutual has been shoring up its U.S. holdings, as demonstrated by its acquisition of State Auto Financial Corp. in 2022.
“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,” Tim Sweeney, Liberty Mutual Insurance president and CEO, said in a release.
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