Sompo International’s wholly owned Brazilian subsidiary, Sompo, has signed an agreement to acquire local peer Fator Seguradora.
The value of the transaction has not been disclosed and the deal remains subject to approval by the relevant regulatory authorities.
According to the translated version of the announcement, the acquisition is part of Sompo’s strategy to expand its presence in the corporate insurance market by widening its portfolio of specialised solutions.
The company said the deal will strengthen its position in business lines in which Fator Seguradora has consolidated operations and recognised expertise, particularly property, guarantee and financial lines.
It said completion of the transaction is expected to further reinforce its market position.
Until the regulatory approval process is finished, both companies’ operations will remain unchanged.
Sompo and Fator Seguradora will continue to operate independently, and their commercial teams will maintain normal engagement with brokers and customers to ensure continuity and stability of service.
Sompo Brazil CEO Alfredo Lalia Neto said: “The operation is fully aligned with our sustainable growth strategy and the ambition to expand our relevance in technical segments with higher added value.
“Fator Seguradora has a consistent and recognised performance in lines such as guarantee and financial lines, segments that represent important growth opportunities for Sompo.”
In April this year, Sompo and UK digital motor insurer Zego entered a partnership to examine and build telematics-based insurance products for Japan.
The partnership is intended to bring together the Japanese group’s insurance experience and market understanding with Zego’s technology platform and AI capabilities.
Last year, Sompo Holdings reorganised its business into two global segments – Sompo Property and Casualty (re)insurance (Sompo P&C) and Sompo Wellbeing.
Sompo P&C brought together the insurance and reinsurance operations of Sompo International Holdings with its commercial and consumer property and casualty (P&C) operations in Japan.
Sompo Group originated in Japan and has been active in the insurance market for more than 138 years, with operations across five continents.
“Sompo agrees to acquire Fator Seguradora in Brazil” was originally created and published by Life Insurance International, a GlobalData owned brand.
