Allianz Buys 45% Stake In Large Russian Insurance Company

Allianz is acquiring the shares in ROSNO from the Moscow-headquartered financial and industrial holding company Sistema, and from other shareholders. (Allianz says in the release announcing the deal that Sistema's major shareholder is Vladimir Evtuchenkov, the comopany's chairman.)

Allianz says the investment represents a significant step for its expansion in the Russian market, where it has operated since 1991 with Ost-West-Allianz, a company that specializes on large industrial clients. OWAZ will remain independent and will continue to focus on its niche market, the company says.

"The stake in ROSNO will allow Allianz to participate more significantly in the local corporate clients market and the market for personal lines?especially the growing health insurance and private provision business," Allianz says in a statement.

"The Russian insurance market plays an important and driving role in the CIS and has enormous growth potential," Michael Diekmann, the Allianz management board member responsible for, among other things, Central and Eastern Europe as well as Asia, says in a company statement. "By acting now, we can secure our first-mover advantage in this market."

"With this transaction, Sistema brings another significant foreign investor to the Russian market, which is positive for our economy," says Evgenij Novitsky, president of Sistema. "We look forward to working with Allianz to contribute to the development of the insurance sector in Russia."

Allianz says the Russian market has enormous growth potential. "For example, less than 1% of the population has a life insurance contract and less than 5% owns private health insurance," the company says. "While the average annual amount spent on insurance products per person in, for example, Poland and Hungary lies at $107 and $113, respectively, this sum in Russia only amounts to approximately $30."