German insurance major Allianz is engaged in negotiations to acquire the property and casualty and auto insurance arms of Brazilian insurer Sul América.
The move has been confirmed by Sul América in a recent securities filing. The insurer acknowledged that it has received nonbinding offer from Allianz.
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Both the companies are now in the process of discussing the details of the proposed deal.
If the proposed transaction materialises, Sul América will left with health, dental, life, pension, and asset management business.
Sul América said there is no certainty that the deal will finalise and it may still fall apart. The company will announce the details of the deal in due course.
Sul América’s auto insurance premiums rose to BRL844.6m ($219.4m) during the first quarter of 2019. All other insurance segments collected a premium of BRL50.7m ($13.2m).
Last month, Allianz agreed to acquire the general insurance operations of Liverpool Victoria Friendly Society (LV=) as well as that of Legal & General (L&G) for £365m ($461m) to bolster its presence in the UK.
The German insurer has also signed an agreement with Spanish lender Banco Santander to offload its 60% stake in the Allianz bancassurance joint venture (JV) Allianz Popular for €936.5m ($1bn).
