Allianz Group has agreed to sell a majority stake in its Russian operation to Interholding for an undisclosed sum.
The deal involves property and casualty insurer Zetta Insurance, which has more than 120 points of sales in Russia, with over 9,500 agents in more than 150 cities in the country, and has over a million customers.
Upon completion, Allianz said it will hold a minority stake of 49.9% in the combined company. The sale is subject to regulatory approvals.
Allianz estimates the deal to have a negative impact of about €400m (£341m, $428m) on its profit and loss account, “largely due to the reclassification of negative foreign exchange impact from shareholders’ equity”.
It added that the sale “is aimed at ensuring continuity for clients and employees”, after its decision to scale back operations in Russia following the invasion of Ukraine.
Prior to this deal, Allianz has been steadily expanding its global presence with a €207m acquisition in Greece in February 2022, and with the creation of a pan-African joint venture with Sanlam in May 2022.
