The deal won't impact solvency capitalization or cash position, Allianz reported. (Credit: Benjamin Girette/Bloomberg)
(Bloomberg) — Allianz SE will take a hit of about 400 million euros ($430 million) to profit from the sale of a majority of its Russian operations, part of a retreat from the country in the wake of the war in Ukraine.
Allianz, which is selling the stake to Interholding LLC, will own 49.9% of the combined company after the transaction, the Munich-based company said in a statement on Friday. The deal won't impact its solvency capitalization and cash position.
A negative foreign exchange rate is the primary driver of the losses, the company reported.
Allianz earlier this year stopped insuring new business and making new investments in Russia on behalf of its own investment portfolio following the country's invasion of Ukraine.
Interholding is the owner of Russian insurer Zetta Insurance, which has more than 120 points of sales in Russia, with over 6,500 agents in more than 150 Russian cities, according to Allianz. The company caters to more than 1 million customers in addition to small and medium enterprise clients.
Zurich Insurance Group AG agreed to sell its Russia business to 11 members of the unit's team, as the company decided to exit the heavily sanctioned nation. The insurer said last month that the business will operate independently under a different brand.
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