18 May 2023 12:51

Allianz closes deal to sell Russian division to Interholding

MOSCOW. May 18 (Interfax) - Allianz Group has closed the deal to sell a controlling 50.1% stake in its Russian division to Interholding, owner of Zetta Insurance LLC, the German insurance group reported.

After the conclusion of a lengthy approval process, Allianz is handing over complete control of its Russian portfolio to Zetta Insurance and ending participation in the operations of the business, the group said in a press release.

As a result of the deal, Zetta Insurance Group will include Zetta Insurance LLC, JSC Allianz Insurance Company and Allianz Life Insurance Company LLC, which will provide a full line of insurance services to both corporate and retail customers. All current policies of the acquired companies will remain in force.

Interholding was owned by Olma Investment Company chairman Oleg Yachnik as of 2019, data from the Unified State Register of Legal Entities showed.

Munich-based Allianz SE, Europe's largest insurance company, closed 2021 with revenue of 148.5 billion euros. The group entered the Russian market in 1990 and has been working under its global Allianz brand in the country since 2012.

The group had two companies in Russia, JSC Allianz and Allianz Life LLC. The former ranked 43rd among Russian insurers in 2021, according to Central Bank data. The company's premiums slumped 8% to 4 billion rubles in 2021, while payouts jumped 45.7% to 1.7 billion rubles. The company's market share by premiums shrank to 0.25% from 0.3% in 2020.

Allianz Life ranked 19th among Russian insurers by premiums in 2021, when its premiums grew by 12.3% to 17 billion rubles and payouts jumped 32.4% to 9.6 billion rubles. The company's market share by premiums edged down to 0.9% in 2021 from 1% in 2020. Among life insurers, the company ranked 13th in 2021, as its life insurance premiums grew by 15.4% to 6.5 billion rubles and life insurance payouts rose 38.1% to 2.2 billion rubles.

Zetta Insurance ranked 26th among Russian insurers by premiums in 2021, when its premium revenue grew by 19.7% to 8.8 billion rubles and payouts rose 14.9% to 3.8 billion rubles. The overall level of payouts decreased to 42.6% from 44.4% in 2020. The company's market shrank by premium revenue remained unchanged at 0.5% in 2021.

Zetta Insurance, formerly Zurich Insurance, is a universal insurer that has been operating on the Russian market since 1993. The company has been operating under the Zetta Insurance brand in Russia since February 2015.