facebook
linkedin
twitter
About Us
  • Economy
  • Banking
  • Securities
  • Insurance
  • Commodities
  • Public Sector
  • Tourism
  • Startup
  • Real Estate
  • Retail
  • Law & Justice
  • Events
Genearli Colombia office in Bogotá. (Credit: Jared Wade)

Generali Sells Colombian Insurance Business to Talanx Group for $35 Million USD

by Jared Wade
July 21, 2017
Comment: Off

The Generali Group has agreed to sell its Colombian insurance operations to the Talanx Group of Germany for approximately $35 million USD.

In the transaction, the Italian insurance giant will be offloading its stake in both Generali Colombia Seguros Generales S.A. and its subsidiary Generali Colombia Vida Compañia de Seguros S.A. pending regulatory approval. Talanx Group, which is based in Hanover and owns the HDI brand in Latin America, said that it expects the sale to close before 2018.

The deal represents a transfer of a 91.3% holding in Generali Seguros, which has a property insurance focus, and a 93.3% holding of life insurer Generali Vida to the Talanx Group, the Trieste-based company said in a statement.

The sale highlights the differing strategies of the two European companies. While Generali, whose Colombian business had total premium income of around €59 million in 2016, or less than 1% of the local insurance market, no longer sees Latin America as a core segment, Talanx is eager to grow in the region. The German firm already operates in six Latin American nations with its HDI arm.

“For Talanx, the acquisition of Generali Colombia is a strategic step to open up the fifth largest Latin American market,” said Torsten Leue, chairman of the board of management at Talanx International AG. “For us, this means further strengthening our position in the target region. The companies are well positioned and have strong management.”

The Bogotá-based Generali Colombia has been operating since 1952 and has eight branches throughout Colombia. About 70% of the portfolio that Talanx is acquiring is made up of property business with the remaining 30% being on the life side.

“With a young population and a growing middle class, the country is an interesting emerging market, particularly for the retail division,” said Talanx in a statement. “From a fronting perspective, the new companies will also help Talanx underwrite business with the industrial lines division in Colombia.”

For Generali, the small scale of the operations in Colombia meant that it feels the company will be better served by focusing on other markets. “These transactions are another step forward in the rebalancing of Generali Group geographical presence across the world,” said Frédéric de Courtois, CEO of the company’s global business lines and international group. “We are making good progress in the rationalization of our geographical footprint pursuing our strategy to make Generali a simpler and smarter company.”

Along the same lines, Generali has completed its previously announced plan to sell its business in Guatemala. The insurer sold Aseguradora General S.A., a Guatemala City-based firm primarily working in property and casualty lines, to the Neutze family, who the company described as “long-term trusted local partners.”

The Generali Group stated that it will “remain active in Guatemala with its international business lines,” however. The ongoing work will be in relation to Generali Employee Benefits, Generali Global Corporate and Commercial, and Europ Assistance, according to the firm.

Photo: The office of Genearli Colombia in Bogotá. (Credit: Jared Wade)

DON'T MISS OUT: The only English-language Colombia news that's strictly business, markets, & investment!
Join global executives & investors by subscribing to our FREE weekly updates
I agree to have my personal information transfered to MailChimp ( more information )
We will never spam you or share your email address ¡Nunca Jamás!
Share on FacebookShare on TwitterShare on Google+
Send to Kindle

Comments

comments

About the Author
Jared Wade is editor in chief of Finance Colombia. He is a Bogotá-based journalist with 15 years of experience covering topics including business, financial services, Latin America, and sports. Email him at jared.wade(at) financecolombia.com or follow him on Twitter at @Jared_Wade.
  • google-share

Related Posts

off

Interview: Ducati Continues to Grow in Colombia with New Importer and Expansion Plans for Cali, Bucaramanga

Posted On October 14, 2018
, By Loren Moss
Pope Francis and Colombian President Juan Manuel Santos embrace at the Casa de Nariño in Bogotá. (Credit: Presidencia de la República)
off

Colombian President Duque Will Meet with Pope Francis at the Vatican on October 22

Posted On September 7, 2018
, By Jared Wade
Coffee beans from Don Elias finca in Salento, Colombia. (Credit: Jared Wade)
off

Three Colombian Coffee Growers to Compete for Illy’s ‘Best of the Best’ Beans Award in New York

Posted On August 25, 2018
, By Jared Wade
Colombian Peso Exchange Rate



RECENT

POPULAR

COMMENTS

Cabify Secures $70 Million USD Loan from IDB Invest

Posted On February 8, 2019
Justin Trudeau in Canada (Photo credit: Adam Scotti / PMO)

Canada Pledges $40 Million USD in Aid for Venezuelans

Posted On February 5, 2019

Colombian President Duque Calls on Maduro to Step Down, Recognizes Opposition Head as Venezuela's Legitimate Leader

Posted On January 23, 2019
AV MRO (Photo credit: Avianca)

Avianca Transported more than 30.5 Million Passengers in 2018

Posted On January 23, 2019

Colombia-Based Tecnoglass Announces Joint Venture with Saint-Gobain, New Glass Factory

Posted On January 11, 2019
Homicide Crime Photo Courtesy Geralt Pixabay

Colombia's Homicide Rate Reaches 30 Year Low In 2014

Posted On January 5, 2015

Colombia Raises Monthly Minimum Wage To $644,350 (US $270 as of Jan.20) For 2015

Posted On January 20, 2015
Cartagena Shoreline - Photo Credit: Loren Moss ©2013

Cartagena Is New JetBlue Destination From Fort Lauderdale

Posted On January 1, 2015

Hilton Worldwide Launches Colombia's First Hilton Garden Inn, Barranquilla, Atlántico

Posted On January 7, 2015

Understanding Petroleum Production Acronyms, Phrases & Abbreviations

Posted On January 24, 2015

[…] Con el aumento, el el nuevo...

Posted On December 31, 2017

[…] Cardinal Compañía de Seguro...

Posted On March 30, 2017

[…] 2015, Hilton added a $210...

Posted On July 6, 2016

[…] company begin preparing to be...

Posted On July 2, 2016

[…] international airport...

Posted On June 18, 2016

Don’t Miss Out! Subscribe Now:

Watch This!

CONSIDER ADVERTISING WITH US



Newsletter

Contact Us

  1. Name *
    * Please enter your name
  2. Email *
    * Please enter a valid email address
  3. Message *
    * Please enter message
Copyright 2014-2018 Finance Colombia All Rights Reserved.