The Allianz Group has agreed to sell a majority stake in its Russian operations to Interholding, the owner of Russian P/C insurer Zetta Insurance. Upon the completion of the transaction, Allianz will hold a minority stake of 49.9% in the combined company.

The transaction is subject to regulatory approvals.

The transaction is estimated to have a negative impact of about 0.4 billion euros on Allianz's profit and loss account, largely due to the reclassification of negative foreign exchange impact from shareholders' equity. The Allianz Group's solvency capitalization and cash position will not be impacted.

The agreement, which follows Allianz's decision to scale back operations in Russia, is aimed at ensuring continuity for clients and employees.

Interholding-owned Zetta Insurance has more than 120 points of sales in Russia, with over 6,500 agents in more than 150 Russian cities. The company, which has over 1 million customers in addition to small and medium enterprise clients, has partnerships with 350 car dealers and 30 commercial banks in the country.