Boston-based Liberty Mutual Group announced today that its Brazilian subsidiary, Liberty International Brasil Ltda, has signed an agreement to buy 100 percent of Indiana Seguros, S.A.
Monetary terms were not disclosed. Liberty said the acquisition is subject to regulatory approval in Brazil, and all parties are working to achieve the earliest possible closing date.
Based in Sao Paulo, Liberty Seguros S.A. has 76 branch offices around the country with more than 1,000 employees who serve 600,000 clients and nearly 10,000 brokers.
Liberty said once the transaction is completed, Liberty Brazil will become the 10th largest property and casualty insurer in the Brazilian insurance market, with a market share of 3.2 percent, a portfolio of more than one million clients and net written premium of $580 million.
The transaction will make Liberty Brazil the 6th largest auto insurer in the market, with a 6.4 percent market share, according to the carrier. Liberty Brazil also provides home and life insurance.
Edmund F. Kelly, chairman, president and chief executive officer of Liberty Mutual Group, said Indiana Seguros' “$180 million in net written premium and more than 500 employees will expand our presence significantly in the most important cities in Brazil.”
Founded in 1943 by the Afif family, Indiana Seguros's main product is private passenger auto, sold through car dealers and retail producers throughout the country.
Additionally, Indiana Seguros writes homeowners and life insurance–both individual and group. The company's current shareholders are the Afifs, with 60 percent, and the Bradesco Group, with 40 percent. Both Guilherme Afif Domingos and Claudio Afif Domingos will continue to serve on the board of Indiana Seguros.
Liberty Mutual Group noted that earlier this year it had invested in SIIF Energies do Brasil and Rosa Dos Ventos–collectively, the country's largest wind power plant projects.
The insurer said the company's role as the largest private participant in the two projects, along with this latest acquisition, reaffirms its commitment to the Brazilian insurance industry and to Brazil, generally, as an attractive economy for investment.
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