Allianz to take over European Reliance

Allianz said on Friday it will pay about €207 million euros to acquire Greek insurer European Reliance, a move that will create the country’s fifth-largest insurer based on gross written premiums.

The €7.80 per share bid represents a 15.7% premium on Friday’s closing price, Allianz said, adding it was entering share purchase agreements covering 72% of European Reliance’s shares and will launch a takeover bid for the remaining stake.

“This is an exciting opportunity for Allianz to elevate its position in the attractive Greek insurance market with an ideal entity such as European Reliance,” Allianz management board member Sergio Balbinot said.

As part of the transaction, European Reliance will be combined with Allianz Hellas, the insurer’s Greek unit.

The merged entity will be led by European Reliance CEO Christos Georgakopoulos, Allianz said. [Reuters]