MDS Brazil, a reinsurance broker subsidiary of Ardonagh-owned MDS Group, intends to acquire D’Or Consultoria, a Brazilian broker specialising in health, dental, life insurance and pensions, from insurance company Rede D’Or Sao Luiz.

The deal is valued at $800m reais($156.2m) and awaits regulatory approvals including the Administrative Council for Economic Defence (CADE).

Currently, MDS Brazil manages premiums worth $4bn reais. The acquisition of D’Or Consultoria is expected to significantly enhance its position in the corporate benefits segment.

D’Or Consultoria brings a portfolio primarily composed of health plans catering to around 2.5 million users.

The merged entity is expected to manage more than $8bn reais in gross written premiums, positioning it as one of Brazil’s largest brokers.

MDS Brazil CEO Ariel Couto said: “This transaction marks an exciting evolution of our regional strategy fortifying our footprint, in the Latin American market, with cutting-edge solutions tailored to our clients’ needs.

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“The arrival of D’Or’s experienced leadership team and proprietary technology will significantly elevate our benefits and health proposition. Drawing on their legacy in the market and combining it with our own, MDS is poised to solidify our position as one of the leading brokers in Brazil and Latam.”

Both companies will retain their operational independence until the acquisition is approved.

Couto will lead the combined business, while the executive team of D’Or Consultoria, including CEO Bruno Iannuzzi, will remain to enable service continuity.

MDS said the deal forms part of its expansion strategy in Brazil and Latin America, following 12 previous acquisitions in Brazil and one in Chile over the past five years.

Ardonagh plans to finance the transaction using available liquidity.

D’Or Consultoria CEO Bruno Iannuzzi said: “We are excited to be announcing the next chapter for D’Or today, one which we believe will deliver long-term value for our people, customers and partners.

“The transaction will allow for a differentiated and more complete offering to our clients and market in general, while contributing for the development of the economy and the society of one the biggest economies and insurance markets in the world.”

Earlier this year, MDS Group named Alvaro Mengotti as an executive board member.

Mengotti latterly served as the chief international and reinsurance officer at March Risk Solutions and previously headed AIG Iberia for 12 years.