Allianz in Advanced Talks to Acquire Portugal's Caravela Seguros

German insurance and asset-management group Allianz is in advanced discussions to acquire Caravela Seguros, a Portuguese insurer, after submitting an offer for the business, according to market reports. The potential deal would extend Allianz's presence in southern Europe and add to a run of strategic activity as one of the world's largest insurers looks to deepen its position in selected markets. Allianz, based in Munich, operates across general insurance, life and health cover, and asset management through units including PIMCO and Allianz Global Investors, and has posted record operating profit in recent quarters. Bolt-on acquisitions of regional insurers can give large groups additional scale, local distribution and a broader customer base, while offering the acquired business access to the buyer's capital, technology and underwriting expertise. The reported talks come as European insurers navigate a landscape shaped by higher interest rates, competition for growth and rising investment in artificial intelligence and digital distribution. Terms of any transaction, including price and regulatory approvals, would determine its impact, and Allianz is due to report its second-quarter results in early August, when investors will look for further detail on its strategy and dealmaking appetite.