Allianz proposes to acquire European Reliance General Insurance for €207m

Allianz SE has offered to acquire European Reliance General Insurance Company, a Greek insurer, for a sum of around €207 million.

The German insurance giant is offering a price of €7.8 per share to the shareholders of European Reliance General Insurance.

Allianz has signed share purchase agreements (SPAs) to first acquire a stake of 72% in the Greek insurer and subsequently launch a combined voluntary tender offer (VTO) to buy out remaining shares.

The SPAs have been signed by Allianz with the Greek insurance company’s executives and the CEO who hold a combined stake of 20.02%, European Bank for Reconstruction and Development (EBRD) which has a stake of 15.54%, and other shareholders who hold a stake of 36.7%.

The voluntary tender offer will be initiated after the approval of the 72% stake acquisition from the Bank of Greece, the Hellenic Competition Commission, as well as the Hellenic Capital Market Commission.

Allianz proposes to acquire European Reliance General Insurance for €207m. Photo courtesy of Allianz.

European Reliance General Insurance has gross written premiums (GWP) of €223 million. The Greek insurance company has a network of 110 retail offices and 5,667 agents.

Allianz said that the deal is in line with its strategy to expand its franchise by making use of its scale and expertise.

According to the German insurance giant, the combination of European Reliance General Insurance with the former’s Greek subsidiary Allianz Hellas will result in the fifth largest insurance firm in Greece on the basis of GWP and the fifth largest life/health insurer in the region.

Furthermore, the acquisition is expected to help Allianz to further grow in the Greek market and expand via new product offerings, customer pools, and distribution channels.

Sergio Balbinot — Allianz board of management member said: “This is an exciting opportunity for Allianz to elevate its position in the attractive Greek insurance market with an ideal entity such as European Reliance.

“I look forward to welcoming European Reliance’s employees to the Allianz Group after all the regulatory clearances are granted. Together, we will have deep sector knowledge and be well-placed for success.”

Following the completion of the takeover, European Reliance General Insurance CEO Christos Georgakopoulos will be the CEO of the combined company.