RUSSIA: ALLIANZ P/C business units' merger approved

18 August 2011 —
moscova4The Federal Anti-Monopoly Service and Federal Service for Financial Markets from Russia recently issued the official approval for the merger of ALLIANZ Russia and IC Progress Garant with OJSC IC ROSNO.The integration is a logical step towards implementation of ALLIANZ Group's strategic plans in Russia, aiming to set up a highly profitable company supported by the capital of ALLIANZ SE. The consolidated company is scheduled to commence operation in Q1 2012.

In addition, this decision underlines the importance of Russia as one of the fastest growing markets for ALLIANZ Group. "By bringing together the strengths and best practices of the three companies, we enter a new development stage, giving Russian clients the opportunity to access the whole range of ALLIANZ products from insurance to asset management", stated Bruce BOWERS, regional CEO of ALLIANZ in Central and Eastern Europe.

The integration process will be controlled by Hakan DANIELSSON, President of OJSC IC ROSNO, who will head the newly consolidated company. "Today, the Russian assets of ALLIANZ Group in Russia consist of OJSC IC ROSNO, one of the market leaders and a trendsetter in medical insurance, OJSC IC Progress Garant, a growing and profitable company, and CJSC Insurance Joint Stock Company ALLIANZ, a leading insurer of industrial risks. By consolidating strengths and successes of all three companies, we are entering a new development phase, enabling the Russian clients to use the advantages of Allianz's advanced international expertise, thus ensuring financial stability and high service quality", notes DANIELSSON.

Hannes CHOPRA, former CEO of OJSC IC ROSNO, has been appointed Chairman of the Board of Directors of ROSNO and will retain this position in the new company. Oleg PYATAKOV, Chairman of the Board of OJSC IC Progress Garant, will retain this position up to the consolidation, where after he will be appointed Vice President of the new company and will be in charge for business development in the CIS markets at ALLIANZ CEEMA.

ALLIANZ entered the Russian market in 1990 by founding the company «OST-West Allianz» (later CJSC Insurance Joint Stock Company Allianz). At the time, it was one of the first foreign insurers to be granted licenses for life and non-life insurance operations. OST-West Alliance specialized in servicing large industrial-sector companies. In July 2001, ALLIANZ acquired 45.47% of ROSNO shares, and in 2007 it became the major shareholder of ROSNO Group, thus largely expanding Allianz's presence in the Russian market.

On 21 May 2007, ALLIANZ SE completed the purchase of 100% of the authorized capital of the Russian insurer Progress-Garant. ROSNO Group is one of the largest insurance groups in Russia. It comprises the universal federal-level insurance company OJSC IC ROSNO and its subsidiaries: OJSC ROSNO-MS, OJSC RC ROSNO Centre, ICJSC Medexpress, OJSC Allianz ROSNO Asset Management, and SLC Allianz Ukraine.

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