Generali Leads Bids for Portuguese Insurer Tranquilidade

02 Jul 2019, 04:10 PM IST

(Bloomberg) -- Assicurazioni Generali SpA has emerged as the frontrunner to acquire Apollo Global Management’s Tranquilidade, the second-largest non-life insurer in Portugal, people familiar with the matter said.

The Italian insurer offered the highest bid for Tranquilidade and is poised to enter final negotiations on terms of a purchase, according to one of the people. A deal could value Tranquilidade at almost 600 million euros ($682 million), the person said, asking not to be identified because the information is private.

Apollo also received final offers from Spain’s Grupo Catalana Occidente SA, Ageas and Allianz SE, the people said. Shares of Generali gained 0.4% in Monday trading, while Italy’s benchmark FTSE MIB Index was up 0.1% at the close in Milan.

Tranquilidade is the commonly used name for Seguradoras Unidas, which also holds the Acoreana and Logo brands. No final agreements have been reached, and another bidder could still emerge, the people said.

Representatives for Generali, Ageas and Allianz declined to comment, while a representative for Apollo couldn’t immediately comment.

A spokesman for Catalana said the company is always on the lookout for opportunities, especially in relation to assets “that would allow us to add value and strengthen our position, whether in a specific segment of the business or in a geographical area.”

Large life insurance firms are using acquisitions to diversify, adding products such as car and home insurance. Allianz and Generali have also made offers for some of Banco Bilbao Vizcaya Argentaria SA’s non-life insurance businesses, people familiar with the matter said in March.

Apollo bought Tranquilidade in 2015 for an undisclosed sum. It’s a remnant of defunct Portuguese bank Banco Espirito Santo SA, which collapsed after companies held by the family controlled Espirito Santo Group became mired in bad debt.