Allianz Pulls Out of Joint Venture with VTB
The ROSNO insurer, Allianz’s recent acquisition, has sold the VTB-ROSNO insuring company, a joint venture with VTB (formerly known as Vneshtorgbank). This firm was once regarded as one of the most promising alliances in bank insurance with plans to gain 10 percent on the insurance market in Russia.
Allianz bought ROSNO, a major Russian insurance company, in late February. Under the deal, the Russians were to sell 50 percent and one stock in VTB-ROSNO to the VTB bank, ROSNO’s first deputy head Vladimir Gurdus told Kommersant Tuesday. The stake is estimated to be worth $8 million.
VTB-ROSNO was set up in early 2006. Stockholders put $16 million in the company last year. The insurer had a strategic goal to occupy 10 percent of Russia’s insurance market before 2010.
The deal between VTB and ROSNO has not as yet been finalized, ROSNO’s Director General Hannes Chopra said Tuesday. He also added that his company would like to continue cooperation with VTB.
“VTB-ROSNO is a small company, and Allianz does not need a VTB brand to sell its products,” said Alexander Grigoryev, head of the Ingosstrakh insurer. Other experts note that VTB is most likely to take a lot of efforts to develop its insurance subsidiary.
www.kommersant.com
All the Article in Russian as of Mar. 14, 2007
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