Italian insurance major Generali has agreed to acquire Portuguese insurer Seguradoras Unidas and a smaller service company AdvanceCare in a transaction worth €600m ($674m).
As per the agreement, Generali will pay €510m for Seguradoras Unidas and €90m for AdvanceCare to Apollo Global Management.
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Entities majority owned by investment funds managed by certain affiliates of Apollo Global Management own majority stake in Seguradoras Unidas and AdvanceCare.
With a 15.5% market share, Seguradoras Unidas is the second largest non-life business company in Portugal.
The takeover of Seguradoras Unidas will make Generali the second largest non-life firm in Portugal with a market share of 18.7%.
In life-sector, the acquisition will enable the Italian insurer to use Seguradoras Unidas’s agency network to develop protection products.
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By GlobalDataWith a market share of around 30%, AdvanceCare is mainly operates in the healthcare sector. Generali said that AdvanceCare business model can be expanded in other countries to boost service-based revenues.
Generali CEO international Jaime Anchústegui Melgarejo said: “The transaction will enable us to optimise our strategic positioning in the country, to capture future growth opportunities, to achieve significant cost synergies through the integration of Generali Portugal and Seguradoras Unidas and to ensure the operational solidity of Europ Assistance in the Portuguese market.
“The acquisition of AdvanceCare, which has a diversified institutional customer base, will also help the Group to acquire strong know-how in the healthcare sector and a scalable platform to develop in other countries.
“These acquisitions are an important step in the implementation of the Group’s three-year strategy, which aims to strengthen our leadership in Europe.”
The transactions are subject to receipt of regulatory approvals.
Generali was reportedly engaged in negotiations to acquire the central European assets worth over €2bn of American insurer MetLife, Bloomberg reported in May.
