In each case, Talanx is acquiring more than 90 percent of the shares of the Generali majority shareholders. The purchase price for the shares is around EUR 30 million. The acquisition is subject to approval by the Colombian regulatory authority. The transaction is expected to close by the end of the year.
“For Talanx, the acquisition of Generali Colombia is a strategic step to open up the fifth largest Latin American market. For us, this means further strengthening our position in the target region. The companies are well positioned and have strong management, which will contribute to the Talanx Group's continued growth and success. I am very much looking forward to working with them,” says Torsten Leue, a member and Chairman of the Board of Management at Talanx International AG.
The companies being acquired, with their eight branch offices in the country and headquarters in Bogotá, have been operating successfully in the Colombian market since 1952. Generali Colombia Seguros Generales S.A. and the life insurer Generali Colombia Vida Compañia de Seguros S.A. jointly achieved gross premium volumes of around EUR 59 million (IFRS) and an EBIT of around EUR 2 million in 2016. A positive contribution to earnings is also anticipated for the next few years. Some 70 per cent of the portfolio relates to the property insurance business and around 30 per cent to life insurance.
Talanx is already represented in six Latin American countries through the HDI brand. In the target region, the Talanx Group achieved gross premium income of EUR 1.5 billion in 2016. EBIT stood at EUR 77 million. With a young population and a growing middle class, the country is an interesting emerging market, particularly for the Retail Division. From a fronting perspective, the new companies will also help Talanx underwrite business with the Industrial Lines Division in Colombia.
This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG’s control, affect Talanx AG’s business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialise, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement. Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.