Allianz expects €200m loss from unit sale: Report

German insurer Allianz expects to book a loss of around €200 million from the sale of private bank Oldenburgische Landesbank to US private equity firm Apollo, Reuters reported on June 25.

Allianz did not immediately respond to a request for comment by Intelligent Insurer.

The insurance giant said that it has sold its entire stake in Oldenburgische Landesbank, amounting to around 90.2 percent of the bank, for €300 million to Bremer Kreditbank.

Apollo purchased Bremer Kreditbank in 2014.

The insurer said the loss did not affect its profit outlook for the year, because it had already taken it into account, according to Reuters.

It added that the sale would improve its Solvency II ratio, and that this was one of the reasons for the move.

“As part of the Renewal Agenda, Allianz Deutschland is increasing its focus on its core business of insurance and investment management, making the sale of OLB a logical step,” said Manfred Knof, CEO of Allianz Deutschland.

“However, banks remain an important distribution channel for us as an insurer. That’s why Allianz Deutschland will continue to cooperate with OLB to distribute insurance,” Knof added.

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