Allianz sells S. Korean life insurance and investment arms

Allianz has agreed to sell its South Korean life insurance unit and Allianz Global Investors Korea to China’s Anbang Insurance Group.

Allianz sells S. Korean life insurance and investment arms

|

The sale comes after the Munich-based insurance company’s chief executive, Oliver Baete, put the South Korean businesses under review in a bid to release capital and focus on the firm’s more profitable businesses, reports Bloomberg.

Unconfirmed reports have suggested that Anbang could pay around $3m (£2.1m, €2.6m) for both businesses.

Beijing-based Anbang has been one of China’s most acquisitive conglomerates with purchases focused on real estate and insurance assets. Less than a week ago, the company withdrew a $14bn takeover bid for US hotel operator Starwood.

Acquisition spree

The Allianz deal marks Anbang’s second acquisition of a South Korean insurer and suggests that the company is refocusing on its core business.

Anbang bought a controlling stake in Tongyang Life Insurance for KRW1.13trn last year, also agreeing to buy HRG Group’s Fidelity & Guaranty Life for about $1.6bn in November, to expand in the US.

In early 2015 the company was granted approval to purchase Dutch insurer Vivat, having acquired Belgium-based insurer Fidea the previous year.