Brazilian insurer SulAmerica acquires Sompo Saude for $40 mln (updated)
30/12/2021 12:12
(Recasts with SulAmerica confirming the deal)
SAO PAULO, Dec 30 (Reuters) - Brazilian insurer SulAmerica
SA SULA11.SA has reached a deal to acquire 100% of Sompo
Saude, a subsidiary of Japan's Sompo Holdings Inc 8630.T in
Brazil, it said in a securities filing on Thursday.
SulAmerica agreed to pay 230 million reais ($40.33 million)
for Sompo, the filing said.
Sompo Saude currently holds 116,000 clients in Brazil,
mainly in the state of Sao Paulo, according to the buyer.
SulAmerica said the move is part of a strategy to grow its local
health and dental insurance business.
SulAmerica expects to obtain an additional 650 million reais
per year in revenue from the acquisition, it said, adding that
it also sees cost savings arising from the transaction, without
elaborating.
The deal still requires approval from Brazilian regulatory
bodies, SulAmerica said.
Newspaper Valor Economico was first to report on the
acquisition.
($1 = 5.7032 reais)
(Reporting by Gabriel Araujo; editing by Jason Neely)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))