Generali buying Liberty Mutual's Western European personal, small commercial businesses
Generali Group is buying Liberty Seguros’ operations in Ireland, Northern Ireland, Portugal and Spain for $2.5B in an all-cash deal.
Liberty Mutual Insurance Inc. is selling Liberty Seguros, S.A., its Spain-based personal lines and small commercial business, to Generali Group in a deal valued at $2.5 billion.
The deal includes Liberty Seguros’ operations in Ireland, Northern Ireland, Portugal and Spain. Liberty Mutual’s other European holdings, including its specialty, surety and reinsurance operations, are not included in this transaction and will continue operating as they have, the company reported.
In 2022, Liberty Seguros generated premiums in excess of $1.3 billion, according to the company. Liberty Seguros was Liberty Mutual’s largest non-U.S. operation with nearly 1,700 employees and branches throughout Western Europe.
According to Tim Sweeney, Liberty Mutual president and CEO, selling these units will improve the company’s operational focus and enhance the value proposition for policyholders in other markets.
Rumblings that Liberty Mutual was considering a sale of this business first reared in November 2022. At that time, it was expected the transaction would be valued at more than $1 billion.
The deal with Generali comes right on the heels of Liberty Mutual selling its personal and small business portfolios in Latin America to The Talanx Group subsidiary HDI International AG. That deal was valued at $1.48 billion and is expected to close early next year. Following closing, HDI International will become the third-largest P&C insurer in Latin America.
“Generali is acquiring a profitable insurance business in three growing European markets with very attractive characteristics that will create significant long-term value for all stakeholders,” Philippe Donnet, Generali Group CEO, said in a release.
Generali’s Ireland debut
The transaction will make Generali the fourth largest P&C insurer in Spain, consolidate its position as the second largest in Portugal and establish the company for the first time in Ireland and Northern Ireland markets.
The deal also aligns with Generali’s “Lifetime Partner 24: Driving Growth” strategy, which is centered on driving sustainable growth, enhancing earnings and leading as an innovator in the market, according to the company.
“This transaction underlines the group’s commitment to Spain and Portugal, while strengthening our European footprint, as we enter Ireland with an important market share,” Jaime Anchústegui Melgarejo, CEO international of Generali, said in a release. “The complementary, profitable and diversified nature of the business will also enable us to expand our agents and broker network and gain new operating expertise in the direct business.”
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