HANNOVER (dpa-AFX) - Insurance group Talanx is strengthening its business in Latin America with a multi-billion euro acquisition. The company is taking over the private customer business in Brazil, Chile, Colombia and Ecuador from U.S. insurer Liberty Mutual Insurance for the equivalent of around 1.38 billion euros, the MDax group announced in Hanover on Saturday. The subsidiaries acquired from Liberty Mutual, which operate under the name Liberty Seguros, together with 4,600 employees have a gross premium volume equivalent to 1.7 billion euros. The share price rose by around two percent in early Monday trading.

The acquisition significantly expands Talanx's presence in Latin America. In 2022, the subsidiary HDI International generated a premium volume of around 1.4 billion euros in Brazil, Chile and Colombia. In Chile, Talanx's acquisition of Liberty Mutual's business will make it number one in property insurance, and number two in Brazil, according to the company's own figures.

"The acquisition fits seamlessly into our strategy of achieving market-leading positions in our core markets through organic and inorganic growth," Talanx CEO Torsten Leue said. He added that the acquisition will improve the group's net income and return on equity already in the first year after the closing, which is expected for the first half of 2024.

In the future, 45 percent of the Private and Corporate Insurance International division will reportedly come from Latin America. The closing of the transaction is still subject to competition approvals./mne/hgo/men