Expanding its presence in Portugal, Generali is in the process of acquiring a local insurance company and service platform from Apollo Global Management, in a deal valued at €600mn. Generali, as per the agreement, will acquire 100% of Seguradoras Unidas for €510mn and AdvanceCare for €90mn.
This takeover will work to increase Generali’s share life of the Portuguese non-life market to 18.7% and it will leverage Seguradoras Unidas’s agency network in the life market to help develop protection products. This is in line with its three-year 2021 strategy.
Meanwhile, AdvanceCare is a service platform operating primarily in the healthcare sector and it is Portugal’s second largest private player within the market resulting in a share of around 30%.
Since 1942 Generali has been present in Portugal and currently operates in the country’s life segment through Generali Vida Companhia de Seguros and in the non-life segment through Generali Companhia de Seguros.
Acting through its Investment Bank, Barclays PLC has been an exclusive financial advisor to Generali on the transaction process with Apollo. The law firms Gianni, Origoni, Grippo, Cappelli & Partners, Sullivan & Cromwell and Morais Leitão, Galvão Teles, Soares da Silva & Associados acted as legal advisors.
“With the acquisition of Seguradoras Unidas, Generali will become the second largest group in the Portuguese non-life segment,” said Jaime Anchústegui Melgarejo, CEO International of Generali.
“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,” he explained.
“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.”