Germany's insurer Allianz SE will acquire Brazil's Sul America SA auto and property insurance portfolio for 3 billion reais ($734 million).
The deal represents Allianz' largest investment ever in Brazil, the insurer said, and is expected to close within a year.
"Insurance in Brazil is expected to grow more than the GDP over the next years, as insurance penetration is very low," said Eduard Folch, chief executive of Allianz' Brazilian unit, in a phone interview.
Sul America will carve out its auto and property operations into a new company that will be acquired by Allianz, Folch said.
