German headquartered global insurer and asset manager Allianz is to acquire 72% of Greek insurer European Reliance for €207m.
European Reliance, currently the largest independent insurance undertaking in Greece, has 223 million euros in gross written premiums with a network of 110 retail offices and 5,667 agents.
In a statement, Allianz said the deal is the continuation of its stated strategy to grow its franchise by leveraging its scale and expertise.
Allianz will pay €7.80 per share or approximately €207m to acquire all the outstanding shares of European Reliance via the SPAs and a combined Voluntary Tender Offer (VTO).
Following the approval by the Bank of Greece, the Hellenic Competition Commission and the Hellenic Capital Market Commission, Allianz said it intended to publish the approved Information Circular and proceed with the VTO for the shares in European Reliance at the same price. The shareholders can then tender their shares within the VTO acceptance period.
European Reliance, once combined with Allianz Hellas, would become the first in Property-Casualty insurance, the fifth largest insurance company in Greece based on GWP and the fifth largest Life/Health insurer.
This would empower the company to pursue further growth in the Greek market and expand through new product offerings, distribution channels and customer pools.
Once the transaction is completed, European Reliance's CEO Christos Georgakopoulos will assume the role of CEO of the combined company.
Sergio Balbinot, member of the board of management of Allianz "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."
