Allianz buys SulAmérica auto insurance for US$741mn
Brazilian insurer SulAmérica is selling its automobile and property insurance portfolio to German insurance company Allianz for 3bn reais (US$741mn), the company’s largest investment in Brazil to date.
Allianz will not buy the portfolio directly from customers. Automobile and property activities in Brazil will first be detached from SulAmérica to form separate operations, and then the business will be transferred to Allianz.
As the conclusion of the transaction is conditioned upon approval from regulatory agencies and other compliance issues, the transfer should be fully completed within 12 months. Allianz expects to be the second largest automobile insurance provider in the world with the new operations.
“Brazil has much opportunity in terms of corporate and specialty business clients. It has a pool of creativity and people are open minded, helping to push forward new ideas,” says Franz Fehlner, Fleet LatAm advisory board member and head of international fleet for Allianz Technology.
With only about 30% of the vehicles in Brazil having more than mandatory insurance, there is much growth potential in the country. Insurance is one of the main expenses in operating any fleet car.