German insurer HDI moves up to number two in the property and casualty insurance market following the transaction, the company said.
The retail international division of the Talanx Group has completed its acquisition of Liberty Seguros.
The Brazilian business is focused on retail customers and small to mid-sized enterprises.
HDI said it was strengthening its market position in Brazil. The insurer has been present in the country since 1979 as HDI Seguros.
Based on the results for the full year 2022, HDI expects gross written premiums in Brazil to increase by at least €1.1bn.
“We are delighted over the quick and successful closing of the transaction in Brazil. This is a first decisive step in breaking into the top two P&C insurers in Latin America,” said Wilm Langenbach, the member of Talanx’s board of management responsible for the retail international division and CEO of HDI International.
“I would like to extend a warm welcome to our new colleagues, distribution partners and customers and I appreciate the trust they show in us. The combined scale, capabilities and talent will enable us to deliver an even stronger value proposition for our distribution partners and customers,” he added.
HDI International will consolidate the results of the acquired entity with effect from closing of the acquisition for the fourth quarter of 2023.
The purchase of the other Liberty Mutual companies in Chile, Colombia and Ecuador remains subject to satisfaction of customary closing conditions, including receipt of regulatory approvals, and is expected to close in the first half of 2024.
“With this transaction, we are becoming the second largest P&C insurer in Brazil” said Nicolas Masjuan, head of Latin America at HDI International. “We are excited to further enhance our position and our business model through the combination of HDI and Liberty in Brazil for the benefit of our partners and clients.”