German insurer Allianz has signed a share purchase agreement (SPA) to buy a 72% stake in European Reliance General Insurance Company (European Reliance).

As per the agreement, Allianz will pay €7.80 for each share of European Reliance or nearly €207m to buy all the outstanding shares of the Greek insurer via SPA and a combined Voluntary Tender Offer (VTO).

With €223m in gross written premiums (GWPs), European Reliance operates a network of 110 retail offices and 5,667 agents.

The deal is part of Allianz Group’s plans to grow its business by capitalising on scale and expertise, which will allow it to further its growth in the Greek market and expand by leveraging new product offerings, distribution channels and customer pools.

The German insurer noted that European Reliance’s merger with Allianz Hellas will result in the creation of the largest P&C insurer, the combined entity will become the fifth largest insurance company in Greece based on GWP and the fifth largest life/health insurer.

Allianz SE board of management member Sergio Balbinot said: “This is an exciting opportunity for Allianz to elevate its position in the attractive Greek insurance market with an ideal entity such as European Reliance.

“I look forward to welcoming European Reliance’s employees to the Allianz Group after all the regulatory clearances are granted. Together, we will have deep sector knowledge and be well-placed for success.” 

Allianz plans to go ahead with the VTO once it receives clearance from the Bank of Greece, the Hellenic Competition Commission and the Hellenic Capital Market Commission.