Allianz sells controlling stake in Russian business to local firm

(Reuters) — Allianz has finalized a deal to sell a majority stake in its Russian operations to local company Interholding, which owns Russia’s Zetta Insurance, Allianz Russia said Thursday.

After a lengthy approval process, Allianz will transfer full control of its Russian portfolio to Zetta Insurance Group, Allianz Russia said. It did not disclose financial details.

Allianz said in November the deal was being delayed by regulators.

Zetta Insurance, Allianz and Allianz Life will be merged into one company following the deal, it added.

Allianz stopped accepting new business in Russia soon after Moscow sent tens of thousands of troops into Ukraine and said a full exit was likely, but it later said it would retain a 49.9% stake in its Russian business but cease participating in the unit's operating activity.

The partial sale would result in a €400 million ($440.32 million) hit to Allianz's net profit, the company has said.