Telefónica is reportedly in talks with potential buyers over the sale of its insurance and reinsurance business for around €100 million (US$117 million), as the Spain-based group continues to review its asset portfolio and simplify its operations under its Transform & Grow strategic plan. (See Telefónica boss pledges ‘tough decisions’ to cut €3B and hopes for M&A.)
According to the Economista news site, possible buyers of Telefónica Seguros include German insurance group Allianz, which is already a Telefónica partner. Both companies have a stake in German fiber wholesale operator Unsere Grüne Glasfaser (UGG). Furthermore, Telefónica has an agreement through BBVA Allianz to offer home insurance to its customers.
Other interested parties are said to include AXA, Generali and Zurich. Sources at Telefónica have declined to comment on the matter.
Telefónica Seguros has a presence in Spain, Germany and the United Kingdom (via Virgin Media O2) and provides services from mobile phone and device insurance through to cyber insurance for businesses, digital protection and home insurance.
The unit was launched in 2004 and initially registered in Luxembourg. In 2021, it relocated its operations and legal headquarters to Spain. According to reports, the business currently generates around €200 million ($233 million) in premiums annually, mostly through insurance for high-end mobile devices, especially iPhones and Samsung phones.
Ensuring success ahead
A sale of Telefónica Seguros might seem surprising given its long tenure at the group, as well as the facility it provides to generate income from alternative sources. Furthermore, services such as protection against cyberattacks are increasingly in demand.
In addition, Telefónica would be less able to respond to rival offers in this field. For example, Zegona-owned Vodafone Spain provides the Vodafone Care service that offers a dedicated digital insurance service for smartphones, tablets, and smartwatches. The service was launched in 2020 in partnership with Assurant General Insurance.
In 2025, MasOrange, which is now fully owned by the Orange Group, formed a ten-year strategic agreement with Zurich Seguros that made Zurich the sole insurance provider for MasOrange. The two companies estimated that the agreement will reach more than 7.5 million policies among MasOrange customers with a cumulative sales target of more than €1.5 billion ($1.75 billion) in ten years.
However, reports say a possible divestment of Telefónica Seguro is viewed in a positive light by the markets as it aligns with the operator’s strategic roadmap, offloads a non-core operation and creates some financial headroom that could be channeled into core areas.
In November, Telefónica CEO Marc Murtra outlined his much-anticipated five-year plan for growth and cost efficiency. Under the Transform & Grow plan, the operator aims to reduce total costs by €3 billion ($3.5 billion) by 2030, simplify its operating model with smaller corporate functions, and strengthen the businesses in its four markets – Brazil, Germany, Spain and UK – with hopes for in-market consolidation in each.
Telefónica has already raised billions in capital by offloading units in Latin America, primarily to major regional consolidators such as Millicom. (See Trump’s Venezuela foray complicates Telefónica’s LatAm exit.)
For the first half of 2026, Telefónica reported total revenue of €16.39 billion ($19.13 billion), up 1.7% year-on-year, and an adjusted EBITDA of €5.77 billion ($6.7 billion), up 3.8%, driven by strong performance in Spain and Brazil. However, the operator’s reported net profit was weighed down by a €265 million ($309 million) restructuring provision for its German unit in the second quarter of the year.
Telefónica has continued to reduce its net financial debt, which stood at €25.27 billion ($29.49 billion) in June, 8.4% lower than at the end of June 2025. The group also said it is on track to meet all its financial targets for 2026, which have been confirmed or upgraded.
