HDI buys Sompo’s retail operation in a transaction worth more than BRL 1 billion

HDI buys Sompo’s retail operation in a transaction worth more than BRL 1 billion

HDI Seguros, one of the largest insurance companies in the country, has just closed the purchase of part of Sompo’s Brazilian operations. The transaction will be paid entirely in cash, in an amount exceeding R$ 1 billion – the exact amount was not informed. The agreement was negotiated over the last four months and will give HDI, of German origin, a strong position in branches and regions of the country where it was not previously present or had a timid presence.

Upon completion of the transaction, Sompo, of Japanese origin, will focus on corporate insurance in the Brazilian market. The company will spin off its “retail” businesses to pass them on to HDI. Last year, the group had already sold the health area to SulAmérica, which is in the process of selling it to Rede d’Or.

“There are three pillars that made the most sense for us in this acquisition: a greater stake in the city of São Paulo, synergy and diversification in various branches,” HDI’s CEO told Broadcast (Grupo Estado’s real-time news system). , Eduardo Dal R. Currently, the company has a strong presence in the market in the South Region, where it is the leader, and operates in the interior of São Paulo.

The purchase will change the size and diversify HDI’s portfolio in the country. Today, the company has about 85% of its portfolio focused on auto insurance, and with the acquisition, it expects to jump from sixth to fourth place in the segment. In this segment alone, the insurance company will receive a portfolio with R$ 1 billion in premiums, and will increase from 1.7 million to 2.3 million customers.

The other part, with BRL 1.8 billion in premiums, includes branches such as residential, housing and life insurance, which gained evidence after the covid-19 pandemic and in which HDI should see the value of the portfolio increase. multiply about ten times. In residential insurance, it will go from 500 thousand to 1 million insured properties.

Among all the rationalists, the arrival in the capital of São Paulo is seen as a driving force for the company’s business in the country. “Assuming that (the state) São Paulo has 34% of GDP (Brazilian)we have an audacious ambition for the State of São Paulo, and for the metropolitan corridor of São Paulo”, said the executive.

With the acquisition, HDI will receive 740 Sompo employees, in addition to a network of brokers and partnerships with banks. The insurer has been constantly evaluating assets, but saw Sompo as a unique opportunity. “Brazil no longer has so many assets to be traded. We want to grow and we believe a lot in Brazil”, said Dal Ri.

In the ranking of the National Confederation of Insurance Companies (CNSeg), HDI occupied the 13th position in the sector in February, considering the collection in the previous 12 months and without the DPVAT and supplementary health. Sompo was in 17th position.


Despite being less “hot” than other segments, such as technology, the insurance sector was the target of one of the biggest acquisitions announced this year so far: the purchase of SulAmérica by Rede D’Or, a transaction valued at R$ 15 billion . Other smaller acquisitions have been taking place, most also focused on health. HDI, however, must stay out of this field.

“The group, internationally, does not operate in the health sector. Like all the others, it requires a very large scale,” said Dal Ri. According to him, the company is working to enter other products, such as agricultural insurance and mass-market insurance – lower-ticket products that are generally sold as a complement to others, such as cyber insurance or card insurance.

In these two branches, entry will be through the organic route, that is, without acquisitions, at least initially. In other cases, however, HDI continues to assess opportunities in the market. “We have a very important growth agenda in Brazil”, commented the company’s CEO. In the world, HDI is a giant in the sector, which collected 5.1 billion euros in premiums in 2021.

The purchase of Sompo’s retail operation still depends on approvals by the Administrative Council for Economic Defense (Cade), the Private Insurance Superintendence (Susep) and bodies in the two companies’ countries of origin.

HDI was advised by BTG Pactual.

Estadão Content

Related post

The 12 months Elon Musk noticed his fortune shrink by $132 billion

The 12 months Elon Musk noticed his fortune shrink…

Amid the widespread fall in company stocks in the United States, most billionaires watched their fortunes shrink in 2022. But the…
PetroRecôncavo pays virtually BRL 1 billion for Maha belongings in Brazil

PetroRecôncavo pays virtually BRL 1 billion for Maha belongings…

PetroRecôncavo has just purchased the assets in Brazil of Maha Energy, an oil company listed on the Stockholm Stock Exchange which…
To compete with McDonald’s, it created a ‘storage’ hamburger store that now earns BRL 50 million

To compete with McDonald’s, it created a ‘storage’ hamburger…

Camila Guerra is the founder of American Burger, a chain of hamburgers she opened with just R$800 and which today has…

Leave a Reply

Your email address will not be published. Required fields are marked *