Allianz AG, Europe's largest insurer, yesterday announced it had taken over a majority stake in Allianz President Life Insurance (統一安聯人壽), a joint venture it formed in 1999 with Uni-President Group (統一集團), Taiwan's biggest food company.
Uni-President agreed to offload its 47 percent share to its long-term partner as part of the conglomerate's strategy of focusing on its core business, according to Uni-President spokeswoman Selina Wu (吳旭慧).
Allianz now controls 97 percent of the nation's sixth-largest life insurer, with the remaining 3 percent remaining in private investors' hands, said Nicole Chien (
Deal
The deal, with each share being valued at NT$15, is worth around NT$1.7 billion (US$51.8 million), although the company refused to confirm a figure.
The insurer will be renamed Allianz Life Taiwan, with its Chinese name as yet undecided, Chien added.
It reported gross premiums of NT$54.4 billion last year, making a market share of 3.7 percent.
"The deal will allow us to further strengthen financial management, international investment know-how and corporate governance of the company," said Bruce Bowers, CEO of Allianz Asia Pacific, in a press statement.
This is the second major acquisition for Allianz this year in Asia, following the recent investment in Commerce Assurance Berhad, a major general insurer in Malaysia.
Strategy
"We have a clear strategy for profitable growth in Asia Pacific. We want to expand consistently and continuously in all of our chosen markets through organic growth and selected acquisitions," said Werner Zedelius, board member of Allianz SE (Munich), and responsible for growth markets.
The Financial Supervisory Commission yesterday said it welcomed Allianz's acquisition of remaining stake owned by Uni-President.
Hsu Chin-chou (許欽洲), deputy director-general of the commission's Insurance Bureau, said Allianz President has reported the transaction to the regulator and that the commission was happy to see the local stake be taken over by a renowned international company.
Uni-President first unveiled plans to offload its stake in the venture in October last year.
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