Allianz plans to buy rest of Euler Hermes for $2.2bn

FRANKFURT: German insurer Allianz plans to buy the shares in credit insurer Euler Hermes it does not yet own for around 1.85 billion euros ($2.2 billion).

Allianz said on Monday that it struck a deal to buy 11.3 percent of Euler Hermes' stock for 122 euros per share in cash, taking its holding to 74.3 percent of shares.

It plans to make a public takeover offer for the remaining stock, excluding treasury shares, at the same price, a 21 percent premium to Friday's closing price.

"Increasing ownership in Euler Hermes is therefore a logical step for Allianz to deploy capital in strategic businesses delivering solid operating performance, and to strengthen positions in core home markets and in property and casualty in particular," Allianz said in a statement.

The deal will add about 1 percent to group earnings per share immediately after closing, Allianz said. It said the deal would have no impact on its 2 billion euro share buyback programme.

Euler Hermes said in a statement that its supervisory board would meet to deliver a formal opinion regarding Allianz's offer during the last days of December.