gaining full control of its German life insurance unit, Allianz
Lebensversicherungs (Allianz Leben), is a key element of its
European rationalisation strategy. However, Allianz Leben’s more
than 10,000 minority shareholders have proved stubborn, most having
rejected a $900 million cash offer made by Allianz in January 2007.
This left Allianz holding 92.58 percent of Allianz Leben, a
marginal increase from the 91.03 percent it owned prior to the
offer, and significantly below the 95 percent required in terms of
the German Stock Corporation Act to undertake a compulsory buyout
of minority shareholders.
Allianz has finally circumvented the obstacle presented by
minorities following an agreement reached with an investment
management company to acquire sufficient additional shares to lift
its stake in Allianz Leben above 95 percent. Allianz is to proceed
with a cash offer to minorities at a price equal at least the
weighted average price of Allianz Leben shares during a period of
three months dating back from 18 January 2008. The offer price will
adhere to German intrinsic value accounting standards.
“The buyout of Allianz Leben’s minority shareholders, which now has
become possible, clearly reduces the complexity of our strategic
portfolio,” said Allianz Deutschland’s CEO, Gerhard
Gaining full control of Allianz Leben will complete Allianz’s
acquisition of full control of its major European units. In 2006
Allianz gained full control of its Italian unit, Riunione Adriatica
di Sicurità, at a cost of $7.3 billion. In 2007 full control was
gained of French unit Assurances Générales de France at a cost of
Allianz Leben is Germany’s biggest life insurer and has a market
share of approximately 24 percent. In 2006 Allianz Leben generated
gross written premium income of €13 billion ($19 billion) and
generated net income of €440 million. Total assets under management
stood at €128 billion at the end of 2006.