Generali Is Front-Runner to Buy Portugal Insurer Tranquilidade: Sources

Assicurazioni Generali SpA has emerged as the front-runner 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 the Portuguese company 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.

The parties haven’t yet reached a final agreement on terms of the deal, and another bidder could still emerge. Representatives for Generali declined to comment and officials for Apollo didn’t respond to requests for comment.

Allianz SE and Ageas were also among suitors invited to make second-round offers for the business, people familiar with the matter said in April. Tranquilidade is the commonly used name for Seguradoras Unidas, which also holds the Acoreana and Logo brands.

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.

–With assistance from Sonia Sirletti.