Insurer Allianz said on Friday it would sell the majority stake in its Russian operations to the owner of a Russian insurer as it tries to reduce its footprint in the country after the invasion of Ukraine.
Allianz, which has already stopped accepting new business in Russia, said last month that it would most likely leave the country completely.
But with the agreement announced on Friday, Allianz said it would keep a 49.9% stake.
Allianz said the sale was to Interholding, the owner of the Russian company Zetta Insurance. He did not disclose financial details.
The partial sale would result in a $ 400 million ($ 429.80 million) impairment of Allianz’s net profit, the company said.
The companies have struggled to give up assets in Russia since the invasion, which Russia has called a “special operation.”
“The agreement, which follows Allianz’s decision to reduce operations in Russia, aims to ensure the continuity of customers and employees,” Allianz said.
Allianz generated 0.17% of revenues from its operations in Russia in 2021.
A spokesman said closing the sale and the resulting financial impact are expected by the end of this year.
(1 USD = 0.9307 euros)
(Reporting by Tom Sims and Christina Amann; Editing by Miranda Murray and Bradley Perrett)
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Russia Allianz
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