Generali acquires Liberty Seguros from Liberty Mutual for €2.3bn

Written by Dan McGrath

16/6/2023

Generali is set to strengthen its property and casualty insurance (P&C) position in Spain and Portugal after acquiring Liberty Seguros’ profitable operations from Liberty Mutual for €2.3bn.

Liberty Seguros is primarily a P&C focused company, benefiting from a growing motor business and a diversified product mix with over €1.2bn of premiums in 2022. It also has around 1,700 employees and 5,600 intermediaries across three markets. The company operates through agents, brokers and direct channels, as well as bancassurance agreements and partnerships.

The purchase of the Spanish P&C company will also see Generali enter the Ireland and Northern Ireland markets, with Seguros Liberty also having operations in these areas.

As a result of the transaction, which is in line with Generali’s ‘Lifetime Partner 24: Driving Growth’ strategy, the company will reach fourth position in the Spanish P&C market, whilst consolidating its position in Portugal to second. The company will enter Ireland with a top 10 market share positioning, which is an appealing opportunity to further expand the group’s European footprint in a profitable and attractive market.

The transaction is expected to generate additional economies of scale through Generali Group thanks to cost reduction, IT optimisation and the cross-selling of the company’s products.

The estimated impact on the Generali Group’s regulatory solvency ratio is approximately -9.7 percentage points, leaving Liberty Seguros in a solid capital position, with its solvency ratio in excess of 330% as of 31 December 2022.

Generali Group CEO, Philippe Donnet, said: “Thanks to the acquisition of Liberty Seguros we are accelerating the implementation of our “Lifetime Partner 24: Driving Growth” strategy, taking advantage of a unique opportunity that will deliver sustainable growth, strengthen our leadership position in Europe, and boost P&C growth. Generali is acquiring a profitable insurance business in three growing European markets with very attractive characteristics, that will create significant long-term value for all stakeholders. Thanks to this transaction, Generali is better placed than ever to be the Lifetime Partner of customers throughout Europe.”

CEO, international at Generali, Jaime Anchústegui Melgarejo, added: “This transaction underlines the Group’s commitment to Spain and Portugal, while strengthening our European footprint, as we enter Ireland with an important market share. The complementary, profitable and diversified nature of the business will also enable us to expand our agents and broker network and gain new operating expertise in the direct business.”

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