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 would 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 is able to present each company and retail purchasers with completely different insurance coverage providers.
The sale is predicted to have a $440.32m unfavorable affect on Allianz’s internet revenue.
It was accomplished after Allianz mentioned final 12 months that the deal was postponed resulting from regulatory hardship.
On the time of saying the deal, Allianz mentioned: “The transaction is estimated to have a unfavorable affect of about €0.4bn on Allianz’s revenue and loss account, largely because of the reclassification of unfavorable international trade affect from shareholders’ fairness.
“The Allianz Group’s solvency capitalisation and money place is not going to be impacted.
“The settlement, which follows Allianz’s choice to cut back operations in Russia, is geared toward guaranteeing continuity for purchasers and workers.”
Zetta Insurance coverage is alleged 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 multiple million prospects, in addition to small and medium enterprise purchasers.