A wholly-owned subsidiary of Sompo International Holdings Ltd. has officially signed an agreement to acquire Brazil’s Fator Seguradora, a company specializing in corporate insurance and commercial risk management solutions, with particular strengths in the property, guarantee and financial sectors.
The transaction is still subject to customary regulatory approvals. Sompo said the acquisition, once completed, would represent an important step in its strategy to strengthen its position in the Brazilian corporate insurance market by expanding its portfolio of specialized, high value-added solutions.
Pending regulatory approval, the two companies will continue to operate independently and there will be no changes to day-to-day operations. Their commercial teams will maintain normal business activities to ensure continuity of services to brokers and clients.
Value Capital acted as financial advisor and Mattos Filho acted as legal advisor to Sompo. KPMG Brazil provides actuarial and operational consulting services.
Fator Seguradora was advised by Goldman Sachs as financial advisor and Machado Meyer as legal advisor.
Alfredo Lalia Neto, CEO of Sompo Brazil, commented: “This transaction is fully consistent with our sustainable growth strategy and our ambition to expand our presence in technology areas with higher added value.
“Fator Seguradora has a strong and recognized presence in product lines such as guarantees and finance, which are growth segments for Sompo.
“This complementarity accelerates our ability to expand in these markets while broadening the range of sophisticated solutions available to clients and strengthening relationships with our broker partners.
“We are building a consistent growth trajectory based on specialization, technology discipline and closeness to the market. The combination of our businesses not only represents greater scale but, most importantly, our enhanced ability to address the increasingly complex needs of our enterprise customers.
“We remain focused on ensuring a smooth transition, maintaining the value of our relationships with clients and brokerage partners, and maintaining the excellence that defines Sompo’s performance.”
Alessa Quane, CEO of International Markets, said: “Brazil is a strategically important market for Sompo and this transaction reflects our disciplined approach to expanding our business based on strong customer demand, technology opportunities and long-term value creation.
“Fator Seguradora’s capabilities complement our existing platform in Brazil and support our ambition to further strengthen our professional and corporate insurance services in international markets.”
