Allianz to acquire Aviva Poland for €2.5bn

Allianz is to acquire Aviva Poland in a deal worth €2.5bn, making Allianz the fifth-largest insurer in Poland and consolidating its leading position in central and eastern Europe (CEE). The deal values the acquired business at €2.7bn. The agreement will see Allianz purchase the life and non-life insurance operations, as well as the pension and asset management business, from Aviva Group and acquire a 51%-each stake in Aviva’s life and non-life bancassurance joint ventures with Santander. Allianz said it is set to become number two in CEE in terms of operating profit. Aviva Poland comprises Aviva’s interests in life insurance business in Poland and Lithuania, and its Polish general insurance, asset management and pensions businesses, including a portfolio of financial advice, digital distribution and price-comparison businesses. “This agreement represents an important step for Allianz to accelerate its success story of strong profitability growth in the CEE region and scale-up in Poland, which is the largest CEE market with 38 million inhabitants and GDP of approximately $600bn. Through the transaction, Allianz will double its revenues in the attractive Polish insurance market and achieve a well-balanced business mix between property/casualty and life insurance,” said Allianz. Oliver Bäte, chief executive officer of Allianz SE, said: “We are delighted to further strengthen visibility of the Allianz brand in central and eastern Europe, and pursue our successful growth strategy in the region. By combining our insurance and digital expertise and strong investments in technological innovation, customers will benefit from our innovative products and outstanding services.” Klaus-Peter Roehler, member of the board of management of Allianz SE responsible for insurance in German-speaking countries and CEE, said: “We are very pleased to enter into this agreement as the acquisition of Aviva’s business will reignite growth in Poland and produce a scale effect in the entire CEE region. With a customer-first approach to design and distribution, and using innovation and technology as key enablers to deliver customer satisfaction, we see this as a fantastic opportunity to strengthen our footprint.” Aviva said it will now focus on its strongest businesses in the UK, Ireland and Canada, where it has leading market positions and strong growth potential. The divestment of Aviva Poland is the eighth transaction Aviva has announced in the past eight months, and concludes the planned refocus of the group’s portfolio. Amanda Blanc, chief executive officer of Aviva, said: “The sale of our Polish business is an excellent conclusion to the refocusing of our portfolio announced just eight months ago. The sale of our eight non-core businesses will generate total cash proceeds of £7.5bn. We have made significant progress with our debt reduction plan and in due course we will make a substantial return of capital to shareholders. Our strategic focus is now on our strongest businesses in the UK, Ireland and Canada, where we have leading market positions and strong growth potential.” Subject to receipt of required regulatory approvals, the transaction is expected to complete within the next 12 months.

Allianz to acquire Aviva Poland for €2.5bn

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