Transaction Now Expected to Close on October 31
ZURICH--(BUSINESS WIRE)--
ACE Limited (NYSE:ACE) announced that it has received all regulatory
approvals needed for closing its acquisition of the large corporate
property and casualty (P&C) business of Itaú Seguros, S.A. from Itaú
Unibanco S.A., a transaction that will make ACE the largest commercial
P&C insurer in Brazil. The acquisition, announced in July 2014 and
valued at approximately $630 million at current exchange rates, is now
expected to close on October 31, 2014, well ahead of the previously
announced timeframe. The transaction is expected to be accretive to
earnings immediately.
The large corporate P&C insurance business of Itaú Seguros is the market
leader in Brazil, focusing on a broad array of property and marine
coverages for Brazil’s largest and most sophisticated companies. With a
national presence, relationships with more than 600 brokers and 320
employees, the business had approximately $950 million in gross premiums
written in 2013.
“Itaú’s large corporate P&C insurance business complements and deepens
ACE’s longstanding presence in Brazil in a significant way,” said Evan
G. Greenberg, Chairman and Chief Executive Officer, ACE Limited. “The
business has national reach, extensive distribution, a diversified
portfolio and, importantly, an experienced, professional and talented
management team with an underwriting culture similar to ours. The
combination of our complementary skills, talent and capabilities should
prove powerful. We look forward to welcoming our new colleagues in
Brazil to the ACE family.”
ACE’s operations in Brazil currently include an established commercial
and personal lines P&C business, a significant accident and health
insurance business, as well as life insurance and reinsurance.
ACE Group is one of the world’s largest multiline property and casualty
insurers. With operations in 54 countries, ACE provides commercial and
personal property and casualty insurance, personal accident and
supplemental health insurance, reinsurance and life insurance to a
diverse group of clients. ACE Limited, the parent company of ACE Group,
is listed on the New York Stock Exchange (NYSE:ACE) and is a component
of the S&P 500 index. Additional information can be found at: www.acegroup.com.
Cautionary Statement Regarding Forward-Looking
Statements:
All forward-looking statements made in this press release, related to
the acquisition of the large P&C business of Itaú Seguros, S.A. or
otherwise, reflect ACE’s current views with respect to future events,
business transactions and business performance and are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Such statements involve risks and uncertainties, which may
cause actual results to differ materially from those set forth in these
statements. For example, ACE’s forward-looking statements related to
the large P&C business of Itaú Seguros, S.A. and the anticipated
acquisition could prove incorrect if the transaction were to not close,
if the large P&C business of Itaú Seguros, S.A. and its subsidiaries
were to perform differently than currently expected by ACE or if
anticipated expense-related efficiencies are not realized. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the dates on which they are made. The
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Source: ACE Limited