MDS Brazil expands with acquisition of life and pension brokers | Insurance business America
The $120 million deal will be funded from available liquidity
reinsurance
By Kenneth Araullo
MDS Brazil, a reinsurance brokerage subsidiary of Ardonagh-owned MDS Group, has announced its intention to acquire D’Or Consultoria, a broker specializing in health, dental, life insurance and pensions, from Rede D’Or Sao Luiz.
The transaction, valued at R$800 million (US$123 million), is subject to approval by the Administrative Council for Economic Defense (CADE) and other regulatory approvals. Ardonagh plans to fund the acquisition using the group’s available liquidity.
Upon completion, Ariel Couto, CEO of MDS Brazil, will lead the joint operation. D’Or Consultoria’s leadership team, led by CEO Bruno Iannuzzi, will remain with the company to ensure continuity of services and continued business growth.
Currently, MDS Brazil manages approximately R$4 billion (US$0.62 billion) in premiums. With the acquisition of D’Or Consultoria, MDS Brazil is poised for significant expansion in the corporate benefits sector.
D’Or Consultoria now serves around 2.5 million users with its health plan portfolio. The combined company will manage more than R$8 billion (US$1.3 billion) in gross written premiums, positioning itself as one of the largest brokers in Brazil focused on risk management and advisory. Until regulatory approval is granted, both companies will continue to operate independently of each other.
This acquisition is part of MDS’s expansion strategy in Brazil and Latin America and complements the twelve acquisitions in Brazil and one in Chile in the last five years.
Jose Manuel Fonseca, CEO of MDS Group, said he was pleased to welcome the D’Or team, highlighting their industry expertise and commitment to service.
“Their extensive industry knowledge and commitment to service excellence, combined with MDS’s scale globally, will open up many new opportunities to add value to our customers in Brazil,” he said.
Ariel Couto, CEO of MDS Brazil, said the transaction strengthens its regional strategy and strengthens its presence in the Latin American market with advanced solutions tailored to customer needs.
“The arrival of D’Or’s experienced leadership team and proprietary technology will significantly increase our value and healthcare offering. “MDS builds on its legacy in the market and combines it with our own. With this, MDS is poised to consolidate our position as one of the leading brokers in Brazil and Latin America,” said Couto.
Bruno Iannuzzi, CEO of D’Or Consultoria, also expressed excitement about the new chapter for D’Or, believing that it will provide long-term added value for employees, customers and partners.
“The transaction will enable a more differentiated and comprehensive offering for our customers and the market in general, while contributing to the development of the economy and society of one of the largest economies and insurance markets in the world,” said Iannuzzi.
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2024-05-17 13:00:00
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