Allianz sells businesses in Russia – economy

Allianz is selling much of its business in Russia. Interholding, the owner of the insurer Zetta Insurance, acquires a majority stake. Allianz will then have a 49.9 percent stake in the combined company that has yet to be created. The Russian supervisor has yet to agree. Allianz announced that the agreement reached with Interholding aims to guarantee the continuity of clients and employees.

The sale will entail a charge of 400 million euros for the Munich insurer. One of the reasons for this is the foreign exchange losses that are realized on reclassification.

Although Allianz is not completely withdrawing from the Russian market, the brand will no longer play a role in the newly created company, a spokeswoman said. When the results of the first quarter were presented, there was still talk of an expected complete withdrawal.

Allianz’s Russian subsidiaries are various companies in the areas of property and casualty insurance, life insurance and wealth management. The volume of premiums in 2021 amounted to 258 million euros.

Meanwhile, Allianz shares rose slightly on Friday to €196.24. In recent weeks, the insurer has had to deal with the fallout from a serious fraud scandal in the US that cost around $6 billion in damages and fines. In addition, the subsidiary Allianz Global Investors (AGI) will not be able to offer investment funds in the USA for ten years.

The company’s share price has weathered the scandal remarkably well: Since the beginning of the year, the Dax has lost 9.57 percent, but Allianz’s share has only lost 6.45 percent. The main reason is CEO Oliver Bäte’s determination to steadily increase dividends despite the crisis and to support the share price with share buybacks worth billions.

In the US, AGI has pleaded guilty to allegations of fraud by the Department of Justice and the US Securities and Exchange Commission. Corporate management would like to get rid of the scandal as quickly as possible. But it won’t be that easy: the trial against Gregoire Tournant, the administrator of the collapsed fund structure, began this week in New York. According to Allianz, he is the main person responsible for the fraud. But Tournant has pleaded not guilty to all charges. The process could uncover many details about who in the group knew how much about the practices.

.

Leave your vote

Leave a Comment

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.