Allianz considering selling stake in Saudi subsidiary
Allianz is considering selling its controlling stake in Riyadh-based insurer Allianz Saudi Fransi in an effort to streamline its portfolio and raise cash
According to Bloomberg, Allianz is working with an adviser about the ‘potential disposal’ of its stake in Allianz Saudi Fransi. Bloomberg credited an unnamed source on the matter who ‘asked not to be identified because the matter is private’.
Allianz Saudi Fransi has experienced an approximately 44-per-cent drop in shares over the course of this year, seeing its overall value sink to around US$231 million.
The unnamed source also reported that ‘deliberations are in the early stages, and Allianz could still decide to retain the asset’, but that ‘other insurers have expressed a preliminary interest in acquiring the business’.
The business was established in 2007 as a joint venture between Allianz and Saudi Arabian financial services provider Banque Saudi Fransi. It offers a range of products, including travel and motor insurance, as well as corporate health and marine insurance services.
When consulted on the matter by ITIJ, Allianz's Head of Topics and Financial Communication, Holger Klotz said: "As a matter of principle Allianz does never comment on market speculation or rumours."
If Allianz chose to sell, it would be following in the footsteps of fellow insurer AXA, who completed the sale of its 50 per cent shareholding in AXA Gulf, as well as its 34 per cent shareholding in the AXA Cooperative Insurance Company, to the Gulf Insurance Group in September 2021.
By contrast, Europ Assistance, a Generali subsidiary, announced its acquisition of a 74.6-per-cent majority share of Middle Eastern assistance firm Gulf Assist in June 2022.