Hannover, São Paulo, 14 July 2005
Brazilian Talanx subsidiary HDI Seguros S. A. has entered into an agreement to take over the property and casualty insurer of HSBC Brazil, a subsidiary of the world's second biggest bank. An appropriate contract was signed today in São Paulo between HSBC Brazil and HDI Seguros S. A. The agreement also provides for long-term cooperation in bancassurance for property and casualty insurance in Brazil. The agreed total consideration is BRL 300 million (ca. € 106 million).
The premium income acquired amounting to nearly € 95 million now gives HDI Seguros € 167 million gross premium income. This puts the company among the ten biggest Brazilian property and casualty insurers. Dr. Christian Hinsch, director responsible for international property and casualty business on the Talanx Board of Management: "The additional sales channel is a major strategic step forward and it has significantly enhanced our potential for growth in Brazil." HSBC Brazil has 4.8 million customers and more than 2,000 points of sale.
Matthias Maak, board member of holding company HDI International responsible for international HDI companies: "The market share of HDI Seguros in property and casualty insurance is 3.1% after the takeover and as much as 4.9% for motor insurance."
HSBC hived off the property and casualty insurance company from HSBC Seguros S.A. for purposes of the transaction to form a new company, which will then be taken over by HDI Seguros, pending approval of the local authorities.
Latin America is a designated growth market for retail business at Talanx and Brazil has a key role in this strategy. The market in Brazil - calculated across all sectors - currently has a volume of more than € 15 billion.