Talanx Group expands its presence in Italy

Strategic goal: Enhancing diversification by growing the non-life insurance business
HDI Assicurazioni buys non-life insurer Amissima Assicurazioni from Amissima Holdings
HDI’s medium-term goal is to become one of Italy’s top 10 non-life insurers
Acquisition expected to be EPS accretive from 2022

The Talanx Group is expanding its business in Italy by making a bolt-on acquisition. HDI Assicurazioni, a subsidiary of HDI International AG, the Talanx Group’s Retail International Division, is buying all the shares of Italian non-life insurer Amissima Assicurazioni from Amissima Holdings (indirectly owned by investment funds managed by affiliates of Apollo Global Management, Inc.). In line with its strategy, HDI’s purchase enhances its diversification by expanding its non-life insurance business and will lift its Italian premium volume by approximately EUR 300 million to roughly EUR 2 billion. Roughly 30 percent of this figure will be attributable to the local non-life insurance business. The acquisition moves HDI up from 17th place to 11th place among Italy’s non-life insurers, measured in terms of market share, giving it the chance to reach the top 10 through organic growth. It was agreed not to disclose the amount of the purchase price. The transaction is expected to be accretive to earnings per share, and improve the Group’s return on equity, from 2022 onwards.

“We have had a successful presence in Italy – a profitable and important market for us – for a long time now. This bolt-on acquisition allows us to diversify our business activities by expanding our non-life insurance operations. It is in line with our strategy and will further enhance our position on the Italian market”, said Sven Fokkema, the member of Talanx AG’s Board of Management responsible for the Retail International Division. “Amissima is a perfect fit, since we want to expand our non-life insurance business. We are delighted to be acquiring this company, which has a great deal of potential and complements our activities well.”

Founded in 1920, Amissima was acquired by investment funds managed by affiliates of Apollo Global Management Inc. in 2015. The company’s premium volume of EUR 293 million puts it among Italy’s top 20 non-life insurers, and it employs approximately 300 people. HDI Assicurazioni’s roughly 400-strong workforce generates a premium volume of around EUR 1.7 billion (2019). EUR 1.3 billion of this figure is attributable to the life insurance business and EUR 400 million to non-life insurance.

The purchaser is HDI Assicurazioni. Talanx intends to fund the transaction from existing funds. The deal is expected to close in the first quarter of 2021, subject to approval by the relevant supervisory authorities.

Disclaimer

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.