ZURICH--(BUSINESS WIRE)--ACE Limited (NYSE:ACE) announced that it has received all regulatory approvals needed for closing its acquisition of the large corporate property and casualty (P&C) business of Itaú Seguros, S.A. from Itaú Unibanco S.A., a transaction that will make ACE the largest commercial P&C insurer in Brazil. The acquisition, announced in July 2014 and valued at approximately $630 million at current exchange rates, is now expected to close on October 31, 2014, well ahead of the previously announced timeframe. The transaction is expected to be accretive to earnings immediately.
The large corporate P&C insurance business of Itaú Seguros is the market leader in Brazil, focusing on a broad array of property and marine coverages for Brazil’s largest and most sophisticated companies. With a national presence, relationships with more than 600 brokers and 320 employees, the business had approximately $950 million in gross premiums written in 2013.
“Itaú’s large corporate P&C insurance business complements and deepens ACE’s longstanding presence in Brazil in a significant way,” said Evan G. Greenberg, Chairman and Chief Executive Officer, ACE Limited. “The business has national reach, extensive distribution, a diversified portfolio and, importantly, an experienced, professional and talented management team with an underwriting culture similar to ours. The combination of our complementary skills, talent and capabilities should prove powerful. We look forward to welcoming our new colleagues in Brazil to the ACE family.”
ACE’s operations in Brazil currently include an established commercial and personal lines P&C business, a significant accident and health insurance business, as well as life insurance and reinsurance.
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of ACE Group, is listed on the New York Stock Exchange (NYSE:ACE) and is a component of the S&P 500 index. Additional information can be found at: www.acegroup.com.
Cautionary Statement Regarding Forward-Looking Statements:
All forward-looking statements made in this press release, related to the acquisition of the large P&C business of Itaú Seguros, S.A. or otherwise, reflect ACE’s current views with respect to future events, business transactions and business performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, ACE’s forward-looking statements related to the large P&C business of Itaú Seguros, S.A. and the anticipated acquisition could prove incorrect if the transaction were to not close, if the large P&C business of Itaú Seguros, S.A. and its subsidiaries were to perform differently than currently expected by ACE or if anticipated expense-related efficiencies are not realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.