Italian insurance major Generali has agreed to acquire Portuguese insurer Seguradoras Unidas and a smaller service company AdvanceCare in a transaction worth €600m.
Seguradoras Unidas, also known as Tranquilidade, is the second largest non-life business operator in Portugal with a 15.5% market share in the segment.
As per the agreement, Generali will pay €510m for Seguradoras Unidas and €90m for AdvanceCare to Apollo Global Management.
Entities majority owned by investment funds managed by certain affiliates of Apollo Global Management own majority stake in Seguradoras Unidas and AdvanceCare.
Currently Generali operates in the Portuguese market through life insurer Generali Vida Companhia de Seguros, non-life company Generali Companhia de Seguros, and assistance firm Europ Assistance Portugal.
"With the acquisition of Seguradoras Unidas, Generali will become the second largest group in the Portuguese non-life segment," said Generali's international chief executive Jaime Anchústegui Melgarejo. The takeover will give Generali a market share of 18.7% in that segment.
In life-sector, the acquisition will enable the Italian insurer to use Seguradoras Unidas's agency network to develop protection products.
With a market share of around 30%, AdvanceCare is mainly operates in the healthcare sector. Generali said that AdvanceCare business model can be expanded in other countries to boost service-based revenues.