Home Finance Allianz to keep 49.9% stake in Russian operations after sale

Allianz to keep 49.9% stake in Russian operations after sale

by Enochadmin

FRANKFURT, June 3 (Reuters) – The insurer Allianz (ALVG.DE) stated on Friday it will promote a majority stake in its Russian operations to the proprietor of a Russian insurer because it sought to pare its footprint within the nation after the invasion of Ukraine.

Allianz, which had already stopped accepting new enterprise in Russia, final month flagged that it will very possible totally exit the nation. learn extra

However with Friday’s introduced deal, Allianz stated it will retain a 49.9% stake.

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Allianz stated the sale was to Interholding, the proprietor of Russia’s Zetta Insurance coverage. It didn’t disclose monetary particulars.

The partial sale would end in a 400 million euro ($429.80 million) hit to Allianz’s web revenue, the corporate stated.

Firms have been scrambling to shed property in Russia because the invasion, which Russia has known as a “particular operation”.

“The settlement, which follows Allianz’s determination to cut back operations in Russia, is aimed toward guaranteeing continuity for purchasers and staff,” Allianz stated.

Allianz in 2021 generated 0.17% of revenues from its Russian operations.

A spokesperson stated that the closure of the sale and ensuing monetary affect have been anticipated later this 12 months.

($1 = 0.9307 euros)

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Reporting by Tom Sims and Christina Amann; Modifying by Miranda Murray and Bradley Perrett

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