Insurance group, Allianz has become a top three insurer in Brazil after announcing it had agreed to acquire automobile and other Property-Casualty operations from SulAmérica.

The acquisition will provide the new combined operations with a market share of around 15 percent in motor and 9 percent in Property-Casualty insurance and established Allianz as the number 2 in motor insurance.

The deal is expected to go through within 12 months following regulatory approval and Allianz have agreed a purchase price of BRL 3 billion (€667).

“With the acquisition of SulAmérica’s Property-Casualty operations, we have taken another major step in the strategic repositioning of our Latin American insurance businesses,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “We are attaining a clear leadership position to effectively compete in the growing Property-Casualty market of the largest economy in South America.”

“We are creating a new Allianz combining the best people of both sides and forming an outstanding team that will embrace the opportunities of the Brazilian market with full commitment and confidence,” added Eduard Folch Rue, Chief Executive Officer of Allianz Seguros S.A. (Allianz Brasil). “Our trademark will be the innovation, digitalization, and the service to our customers through our main partners, the brokers and advisors. We will combine the local know-how of SulAmérica with all the strengths that an international Group like Allianz has.”

The total premium income from the acquired entity totaled approximately €806 million in 2018, with €762 million stemming from motor and €45 million stemming from other Property-Casualty operations.

Pro-forma premium income of the combined entity is €1.5 billion with €1.2 billion related to Motor business.

“With a premium volume of approximately €16 billion and a growth rate of 6.0 percent in 2018 alone, the market for Property-Casualty insurance in Brazil is very attractive,” said the underwriter.