ACE to become #1 commercial P&C insurer in Latin America’s largest
market
ZURICH--(BUSINESS WIRE)--
ACE Limited (NYSE:ACE) announced today that it has reached a definitive
agreement to acquire the large corporate property and casualty (P&C)
business of Itaú Seguros, S.A. from Itaú Unibanco S.A. for approximately
$685 million. Upon completion of the transaction, ACE, which has a
longstanding presence in Brazil, will be the largest commercial P&C
insurer in the largest market in Latin America.
The Itaú Seguros large corporate P&C insurance business was established
in 2006 and has been 100% owned by Itaú Unibanco, Brazil’s largest
non-government bank, since 2009. In 2013, the business had approximately
$950 million in gross premiums written and an 18% market share, making
it Brazil’s leading commercial P&C carrier for the large corporate
market. The business, which focuses on a broad array of property and
marine coverages for large corporate accounts, has approximately 320
employees, a national distribution footprint and relationships with more
than 600 brokers.
“Brazil is a large and important market to ACE’s strategy in Latin
America. The addition of Itaú Seguros’s large corporate P&C insurance
business will complement and deepen our longstanding presence in Brazil
in a significant way,” said Evan G. Greenberg, Chairman and Chief
Executive Officer, ACE Limited. “This is a great opportunity to acquire
from one of the region’s largest and most highly regarded banks an
insurance market leader that has complementary business lines, national
reach, extensive distribution, a diversified portfolio and, importantly,
an experienced, professional and talented management team with an
underwriting culture similar to ours. We are delighted that they will be
joining ACE.”
ACE’s operations in Brazil currently include an established commercial
and personal P&C business, a significant accident and health insurance
business, as well as life insurance and reinsurance. The transaction,
which is subject to regulatory approval, is expected to be completed in
the first quarter of 2015 and be accretive to earnings immediately.
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