Allianz today announced an agreement to acquire Polish life and non-life insurance operations, as well as pension fund and asset management operations from the Aviva Group and acquire 51% of shares in companies offering life and non-life bancasurrance products, which are joint ventures of Aviva and Santander.
Allianz will become the second largest insurance company in Central and Eastern Europe in terms of operating profit, and will be on track to create another key region in the Allianz Group. The deal, worth EUR 2.5 billion, will result in an increase in revenues immediately after closing, including a dividend payment of EUR 0.2 billion at a price of EUR 2.7 billion.
Allianz announced that thanks to the transaction, it will double its revenues on the attractive Polish insurance market and achieve the desired balance of the non-life and life segments in its operations.
In particular, Aviva’s strong focus on the dynamic and profitable Polish life insurance market will significantly contribute to the improvement of Allianz’s operating profitability. Moreover, a strong network of exclusive agents and long-term joint-venture cooperation with Santander in the bank assurance segment will expand the distribution base and strengthen Allianz’s market position.
In terms of the total value of gross written premium, Allianz will be the fifth largest insurance company in Poland, advancing to the second place in the life insurance category, it was noted.
If the required regulatory approvals are obtained, the transaction is expected to close within 12 months.
Aviva CEO Amanda Blanc said in a press release that the group is now focusing on its strongest companies in the UK, Ireland and Canada, where it has market leadership and strong growth potential.
“The sale of our Polish business is a perfect end to the reorientation of our portfolio announced just eight months ago. The sale of our eight non-core businesses will generate a total cash flow of £ 7.5 billion. We have made good progress on our debt relief plan and in a timely manner. we will make a significant return of capital for shareholders “- said Blanc.
According to Aviva Polska, the change of ownership is an evolutionary process. The first stage will last until Allianz obtains the required regulatory approvals, after which Allianz will formally become the owner of Aviva companies in Poland. In the second stage, the new owner, in dialogue with the Aviva team in Poland, will shape the common future on the Polish market.
Until the transaction is finalized and further joint arrangements, Avivy companies in Poland will operate under their own brands as before.
“The transaction values Aviva’s total assets in Poland at EUR 2.7 billion, or PLN 12.5 billion. It is therefore the largest such transaction on the Polish insurance market, which confirms the high assessment of our achievements over the past years” – emphasized the president of the Aviva Group in Poland, Adam Uszpolewicz.
As emphasized, today’s information does not mean any changes for Aviva’s customers in Poland. So they don’t need to take any action. Polish regulations protect the rights and interests of clients of financial institutions in the event of a change of owner.
The relationship with Aviva’s insurance agents and sales managers remains unchanged, as do the principles of their cooperation with customers. Aviva’s cooperation with banks, brokers, multi-agencies and other business partners remains unchanged.
“We are opening a new chapter in the nearly 30-year history of Aviva in Poland. Our modern business model and the effective work of the entire Aviva team have been highly appreciated. We are starting the next stage of development, respecting the achievements of our company to date. Acquiring such a strong and reliable owner strengthens our position and attractiveness for clients. Together, we will be a very strong and competitive participant in the Polish insurance and financial market “- said Uszpolewicz.
