Ace is set to become the number one commercial property and casualty (P&C) insurer in Latin America’s largest market after acquiring a Brazilian company.

Ace Ltd announced that it has reached a definitive agreement to acquire the large corporate P&C business of Itaú Seguros, S.A. from Itaú Unibanco S.A. for approximately $685 million.

Ace stated: “Upon completion of the transaction, Ace, which has a long-standing presence in Brazil, will be the largest commercial P&C insurer in the largest market in Latin America.”

Ace, which is one of the worlds largest multi-line property and casualty insurers and has operations in 54 countries, explained that the Itaú Seguros large corporate P&C insurance business was established in 2006 and has been 100 percent owned by Itaú Unibanco, which is Brazil’s largest non-government bank, since 2009. “In 2013, the business had approximately $950 million in gross premiums written and an 18 percent market share, making it Brazil’s leading commercial P&C carrier for the large corporate market.

“The business, which focuses on a broad array of property and marine coverages for large corporate accounts, has approximately 320 employees, a national distribution footprint and relationships with more than 600 brokers.”

ACE chairman and CEO Evan Greenberg said: “Brazil is a large and important market to Ace’s strategy in Latin America. The addition of Itaú Seguros large corporate P&C insurance business will complement and deepen our long-standing presence in Brazil in a significant way.

“This is a great opportunity to acquire from one of the region’s largest and most highly regarded banks and (an) insurance market leader that has complementary business lines, national reach, extensive distribution, a diversified portfolio and, importantly, an experienced, professional and talented management team with an underwriting culture similar to ours.

“We are delighted that they will be joining Ace.”

Ace’s current operations in Brazil include an established commercial and personal P&C business, a significant accident and health insurance business, as well as life insurance and reinsurance.

The transaction is subject to regulatory approval but is expected to be completed in the first quarter of 2015, and be accretive to earnings immediately.