Allianz to sell majority share in its Russian operations
The Allianz Group has announced that it will sell a majority stake in its Russian operations to Interholding LLC, which owns Moscow-based insurer Zetta Insurance
Following the completion of the transaction, Allianz will hold a minority 49.9 per cent stake in the combined company, pending the approval of relevant regulatory bodies.
The transaction is expected to have a €400 million negative impact on Allianz’s worldwide profit and loss account, ‘largely due to the reclassification of negative foreign exchange impact from shareholders’ equity’.
However, Allianz added: “The Allianz Group’s solvency capitalization and cash position will not be impacted.”
The agreement follows Allianz’s decision to scale back its operations in Russia following the start of the country’s invasion of neighbouring Ukraine, and is designed to ‘ensure continuity’ for both clients and employees.
The company is the latest international insurer to announce plans for a reduced presence in the country. It follows a similar announcement by the Zurich Insurance Group, which agreed to sell its Russian business to 11 members of the unit’s team in May 2022.