The financial terms of the transaction were not disclosed.
Established in April 2003, the alliance was the first Sino-foreign fund management JV approved to be set up in China.
In a statement, the insurer said: “This step is in line with Allianz’s strategy to focus on its fully owned asset management activities in China.”
Allianz’s decision comes as the Chinese Government has opened the country’s asset management industry to greater ownership by foreign companies, reported Reuters.
The divestiture is subject to approval from the China Securities Regulatory Commission and other regulatory authorities.
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Chinese investment bank Guotai was the original partner with Allianz when the JV was established 20 years ago.
In 2017, Guotai sold its 51% stake in the fund manager to China Pacific Insurance in a deal valued at 1.04bn yuan ($143.03m).
With the decision, Allianz China Life Insurance became the first wholly foreign-owned life insurance entity in China.
Last week, Allianz signed a deal to acquire Tua Assicurazioni for €280m ($296.38m).
Tua Assicurazioni, a unit of Italian insurance giant Generali, is engaged in offering property and casualty (P/C) insurance solutions in Italy.
Through the acquisition of the Generali unit, Allianz hopes to bolster its distribution capabilities in Italy.
Announcing the deal, Allianz CEO Giacomo Campora said: “The acquisition of Tua Assicurazioni perfectly fits within our strategy, growing our footprint in P/C with a focus on retail and SMEs.”