RIYADH: German insurer Allianz is planning to sell its Saudi Arabia unit, as the firm eyes streamlining its portfolio and raising cash, Bloomberg reported quoting people familiar with the matter.
According to the report, Allianz is currently working with an adviser to sell its controlling stake in Allianz Saudi Fransi Cooperative Insurance Co.
To date this year, shares of Allianz Saudi Fransi have dropped about 44 percent and the company’s market value currently stands at roughly $231 million.
The people who wished to stay anonymous noted that some insurers have expressed preliminary interest in acquiring the business.
They, however, made it clear that deliberations are still at their early stages, and Allianz may even decide to retain the asset.
Allianz Saudi Fransi was established in 2007 and is a joint venture of Allianz Group and Banque Saudi Fransi. According to its annual report, Allianz holds 51 percent of the firm’s shares.
