Allianz replaces UnipolSAI in UniCredit's insurance venture Incontra

UnipolSai Assicurazioni SpA

07/07/2023 17:37

MILAN, July 7 (Reuters) - UniCredit  CRDI.MI  said on
Friday it was ending a non-life insurance venture with UnipolSAI
 US.MI  as it strengthened its relationship with Germany's
Allianz  ALVG.DE , a top shareholder and insurance partner.
    UniCredit said it would buy the 51% stake the Italian
insurer owned in their local joint-venture Incontra, and then
sell 50% of Incontra to Allianz, thereby replacing UnipolSAI
with Allianz as a partner.
    Taking over at UniCredit after the bank underwent years of
restructuring, Chief Executive Andrea Orcel has been working to
build new sources of revenue. He wants in particular to increase
the weight of fees, such as those banks earn on the sale of
insurance products.
    Though UniCredit and Allianz will each own half of Incontra,
the German insurer will have control thanks to shareholder
agreements, UniCredit said in a note.
    The bank said it expected to close the transaction by the
end of the year with negligible impact on its capital base.
    UniCredit and Allianz have partnered in 'bancassurance'
since 1996. In January 2022 they announced a framework agreement
that strengthened their ties in Italy, Germany and central and
eastern Europe.
    At that time Allianz and UniCredit extended their
partnership in Italy to 2027 under a deal that gives the bank
the option to bring the insurance business in house from next
year. Orcel has said that whether it does so will depend on the
regulatory backdrop.
    "This new agreement is fully coherent with the 2022
arrangements between UniCredit and Allianz," the bank said,
adding that it simplified the set-up and added flexibility.
    Allianz is UniCredit's second biggest shareholder with a
3.6% stake.
    Earlier this year Allianz openly backed UniCredit's new pay
policy, which entails a 30% pay rise for Orcel and top
executives if they outperform targets, though some funds managed
by Allianz voted against the policy.

 (Reporting by Valentina Za, editing by Gavin Jones)
 ((valentina.za@thomsonreuters.com; +39 02 6612 9526;))