Allianz Group has concluded a deal to promote a majority stake in its Russian enterprise to native firm Interholding, proprietor of Zetta Insurance coverage.
The conclusion of the deal, which was introduced in June 2022, will see the switch of full management of Allianz’s total Russian operations to Zetta Insurance coverage.
The transfer will finish Allianz’s involvement within the operation of its Russian enterprise.
It’s going to consequence within the merger of Zetta Insurance coverage, JSC Allianz Insurance coverage Firm and Allianz Life Insurance coverage Firm.
Allianz will proceed to carry a minority stake of 49.9% within the merged entity, which can present each company and retail shoppers with totally different insurance coverage providers.
The sale is anticipated to have a $440.32m detrimental affect on Allianz’s internet revenue.
It was accomplished after Allianz mentioned final 12 months that the deal was postponed on account of regulatory hardship.
On the time of asserting the deal, Allianz mentioned: “The transaction is estimated to have a detrimental affect of about €0.4bn on Allianz’s revenue and loss account, largely because of the reclassification of detrimental overseas trade affect from shareholders’ fairness.
“The Allianz Group’s solvency capitalisation and money place won’t be impacted.
“The settlement, which follows Allianz’s choice to reduce operations in Russia, is aimed toward guaranteeing continuity for shoppers and workers.”
Zetta Insurance coverage is claimed to have over 120 factors of gross sales in Russia, with greater than 6,500 brokers in over 150 Russian cities.
The agency caters to a couple of million prospects, in addition to small and medium enterprise shoppers.