Ardonagh swoops on Brazilian broker for LatAm expansion
Ardonagh Group has acquired a Brazilian broker for approximately £123 million that it intends to fund through the group’s available liquidity.
A subsidiary of the Ardonagh-owned MDS Group, MDS Brazil, intends to acquire D'Or Consultoria, a health, dental, life insurance and pensions broker from Rede D’Or Sao Luiz. SA.
The transaction is subject to approval by the Administrative Council for Economic Defense (CADE), including regulatory approvals. Until then, the companies will continue to operate independently.
The joint operation will be led by Ariel Couto, chief executive officer (CEO) of MDS Brazil. The D’Or Consultoria executive team, led by CEO Bruno Iannuzzi, will remain with the company.
Ardonagh said MDS Brazil manages around R$4 billion (£0.62 billion) in premium and the combined operation will manage more than R$8 billion (£1.3 billion) in gross written premiums.
The company said the acquisition is part of MDS’ expansion plan in Brazil and Latin America, adding to 12 acquisitions carried out in the country and one in Chile in the last five years.
Jose Manuel Fonseca, CEO of MDS Group, said: “I am thrilled to welcome this exceptional team of benefits experts into MDS. Their deep industry knowledge and commitment to service excellence combined with the scale of MDS globally will unlock many new opportunities to deliver value to our customers in Brazil.”
Couto said: “This transaction marks an exciting evolution of our regional strategy fortifying our footprint, in the Latin American market, with cutting-edge solutions tailored to our clients’ needs. The arrival of D’Or’s experienced leadership team and proprietary technology will significantly elevate our benefits and health proposition. Drawing on their legacy in the market and combining it with our own, MDS is poised to solidify our position as one of the leading brokers in Brazil and Latam.”
Iannuzzi added: “We are excited to be announcing the next chapter for D’Or today, one which we believe will deliver long term value for our people, customers and partners. The transaction will allow for a differentiated and more complete offering to our clients and market in general, while contributing for the development of the economy and the society of one the biggest economies and insurance markets in the world.”
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