Allianz on Friday announced the signing of share purchase agreements (SPAs) to acquire 72 per cent of European Reliance General Insurance Company SA, a leading Greek insurer with 223 million euros in gross written premiums (GWP), with a network of 110 retail offices and 5,667 agents.
The transaction is the continuation of Allianz Group’s stated strategy to grow its franchise by leveraging its scale and expertise, the insurer stated in a release.
Allianz will pay 7.80 euros per share or approximately 207 million euros 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 would 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.
The 7.80 euros per share bid represents a 15.7 per cent premium to Friday's closing price, Allianz 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," Allianz management board member Sergio Balbinot said.
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, empowering the company to pursue further growth in the Greek market and expand through new product offerings, distribution channels and customer pools.
As part of the transaction, European Reliance will be combined with Allianz Hellas, the insurer's Greek unit. The merged entity will then be led by European Reliance CEO Christos Georgakopoulos, Allianz said.