Describing it as an “important move,” insurance giant Allianz has today confirmed it has raised its stake in Euler Hermes.
The Germany-based insurer now boasts a 92.43% stake in what it dubbed “the world’s largest credit insurer.”
“Allianz is pleased to have further increased its engagement at the end of the tender offer that closed on February 13,” its statement read. “Including the purchase of shares prior to the launch of the tender offer, Allianz has acquired an additional 29.43% of Euler Hermes share capital, representing a total investment of approximately 1.5 billion euros.”
The company outlined that the investment would allow Allianz to deploy capital in the business and strengthen its property and casualty position.
Allianz originally launched a tender offer for the shares in Euler Hermes that it did not already own back in January. According to its statement, at the close of the tender offer, “the remaining float on the market was 2,610,884 shares, representing 6.12% of Euler Hermes share capital.”
It is expected that the transaction will not impact Allianz’s planned share buy-back program, which stretches up to two billion euros.