AXA has agreed to acquire 100 percent of with SulAmérica SA’s large industrial and commercial risks insurance subsidiary, SulAmérica Companhia de Seguros Gerais, for 135 million Brazilian real ($44.7 million ).
The subsidiary handles hull, marine cargo and property business, which will become part of AXA Corporate Solutions Brazil and Latin America (AXA CS Brazil). The transaction is subject to regulatory and antitrust approval and is expected to be completed in the fourth quarter of 2015.
This transaction will increase AXA’s position in the Brazilian market, AXA said, pointing to the fact that SulAmérica’s large risks insurance business is a significant player in the marine market—it is the second largest hull underwriter in Brazil. In addition, SulAmérica has a strong footprint in Rio and South Brazil, which complements AXA CS Brazil’s current coverage of the Sao Paulo state.
SulAmérica’s large industrial and commercial risks insurance operations has reported 12 percent average annual growth in terms of revenues in Brazil over the past two years, reaching BRL 220 million in 2014 ($72.9 million), AXA said in a statement.
Source: AXA Corporate Solutions