Allianz shuffles Russian assets, remains quietly in-country
Allianz said it will send its stake in its Russian operations to a Russian insurance holding, but in a non-cash deal that leaves it with a 49.9% stake in unspecified combined assets.
Allianz called it an asset "sale," but it will take no cash remuneration and will end up with a 49.9% stake in an unspecified "combined company.”
“The Allianz Group has agreed to sell a majority stake in its Russian operations to Interholding LLC, the owner of Russian P/C insurer Zetta Insurance. Upon the completion of the transaction, Allianz will hold a minority stake of 49.9 percent in the combined company.”
Allianz named no price nor valuation, but did admit that the deal has no impact on the group's cash or solvency position.
“The transaction is estimated to have a negative impact of about 0.4 billion euros on Allianz's profit and loss account, largely due to the reclassification of negative foreign exchange impact from shareholders’ equity. The Allianz Group's solvency capitalization and cash position will not be impacted.”
The deal was, however, described as a step to “scale back operations in Russia” while still “ensuring continuity for clients and employees.”
A spokesperson for Allianz, who declined to name the structure of the eventual combined entity, framed the "scaling back" in terms of visible presence and operational control.
“From owning 100% of our Russian operations, Allianz will go to becoming a minority stakeholder in the combined company. Allianz will also not elect any representatives to the combined company’s board or have any management or operational control. In addition, the Allianz brand will no longer be in Russia, as we will hold a minority stake,” Allianz spokesperson Kirti Pandey told Intelligent Insurer.
Interholding's Zetta Insurance has more than 120 points of sales in Russia, with over 6,500 agents in more than 150 Russian cities. The company, which has over 1 million customers in addition to small and medium enterprise clients, has partnerships with 350 car dealers and 30 commercial banks in the country.
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