The Allianz Group has agreed to sell a majority stake in its Russian operations to LLC, the owner of Russian property and casualty (P&C) insurer Zetta Insurance.
The move, which follows Allianz’s decision to scale back its operations in Russia, is aimed at “ensuring continuity for clients and employees,” the company says.
There have been widespread withdrawals from Russia by insurers and other businesses following the country’s widely-condemned invasion of Ukraine, which has sparked unprecedented levels of Western sanctions.
Upon completion of this transactions, Allianz will retain a minority stake of 49.9% in the combined Russian operations.
The transaction is expected to have a negative impact of about €400 million on Allianz’s profit and loss account, largely due to the reclassification of negative foreign exchange impact from shareholders’ equity.
However, the Allianz Group’s solvency capitalization and cash position will not be impacted, it assured.
Interholding-owned 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.