Allianz sells majority stake in Russia


Interholding takes over the majority of the Russian business.

(Photo: ullstein bild/Getty Images)

Frankfurt Allianz is not withdrawing completely from Russia, but is significantly reducing its involvement there. The Dax group is selling a majority stake in its Russian business to Interholding, the owner of Russian property insurer Zetta Insurance.

The insurer did not name a price. However, the transaction will probably burden the income statement with 400 million euros. The Munich group announced this on Friday.

According to the information, Allianz will still own 49.9 percent of the combined company after the closing of the transaction. However, it is still subject to the approval of the supervisory authorities. The insurer expects a conclusion in the second half of the year.

At the presentation of the quarterly figures in mid-May, Allianz CFO Giulio Terzariol said that a complete departure from Russia was very likely after the country’s troops invaded Ukraine at the end of February. In 2021, business in Russia accounted for almost 0.2 percent of the Allianz Group’s gross written premiums.

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The aim of the now sought-after solution with a minority stake is to ensure continuity for customers and employees, as can be seen from the announcement. The alliance apparently wants to ensure that the business will be continued properly by the new partner. He left it open whether the Dax group wanted to reduce its stake in the company in the future or sell it entirely.

Other insurers are also withdrawing from Russia

The negative impact on the income statement is primarily due to the reclassification of negative currency effects already recognized in equity, it said. In concrete terms, this means: Valuation losses, which were previously only reported in equity, must be realized through the partial sale of the business and also shown in the income statement.

According to Allianz, this has no impact on the solvency capital and the cash position. A future dividend payment to the shareholders should not be affected by this, for example.

According to Allianz, Zetta Insurance has more than 120 points of sale in Russia, with more than 6,500 agents in more than 150 Russian cities. In addition to small and medium-sized companies, the insurer serves more than one million customers.

A number of insurers had recently withdrawn from Russia. The Swiss group Zurich recently announced that it was selling its Russian business to eleven employees. The property and casualty insurer will continue under a different brand, and the Zurich Group will no longer have business in Russia.

The Talanx subsidiary HDI International had sold its Russian life insurance unit to Sovcombank before the start of the war.

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