The war in Ukraine continues to deal economic blows to the European economy, as at Allianz.
The German insurance giant Allianz will suffer a loss of around 400 million euros by selling the majority stake in its Russian operations, a consequence of its withdrawal from the country following the war in Ukraine. After selling its stake to Russian company Interholding, Allianz will own 49.9% of the joint venture, the insurer said in a statement on Friday. This operation will weigh on its accounts, probably those of the third quarter once obtained the approval by the competent authorities.
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No information was given on the sale price, except that the operation will be “neutralin terms of cash flow. In other words, it is essentially an exchange of shares and Allianz will find itself a minority investor in the entity, without having a representative on the board of directors. The agreement “aims to ensure continuity for customers“whose contracts in progress will continue to be handled by the buyer, “and employees», Specifies the insurer.
The Munich resident announced at the beginning of March that he no longer wanted to take out new insurance business in Russia or invest there for his own account. Interholding owns insurer Zetta Insurance, which has more than 120 outlets in Russia with more than a million customers, including commercial banks and car dealerships.
Allianz has followed a different path from its Swiss competitor Zurich Insurance, which announced in May the complete sale of its Russian business to 11 members of its local team. The business will continue independently under a different brand, while Zurich will no longer conduct business activities in Russia.
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