Allianz to Integrate Italian Units

February 2, 2007

Germany’s Allianz announced that the Boards of Directors of its Italian subsidiary companies, RAS, Lloyd Adriatico and Allianz Subalpina, have adopted a project to integrate their Italian operations.

“Integration will be achieved through the creation of a single company, Allianz S.p.A., that will operate on the market with three different brands (‘Allianz RAS’, ‘Allianz Lloyd Adriatico’ and ‘Allianz Subalpina) and three separate distribution networks,” said the announcement on the Group’s web site (www.allianz.com).

The consolidation is the next logical step for Allianz, after it acquired the remaining minority shares in the companies, and formed a Societas Europaea – Allianz SE -; one of the first transnational insurance companies to be formed under EU rules (See IJ web site, Sept. 13, 2005 and Dec. 26, 2006).

In a joint press release the three companies noted that their combination would form “the second largest insurer in Italy, with a total market share of 13 percent (P&C plus life) and over six and a half million customers.” Generali remains Italy’s largest insurer.

“The integration will allow Allianz to serve the Italian market, its second largest based on premiums, with a broad range of insurance and financial products in line with world-class standards,” the bulletin continued. “In addition, it will enable a more effective customer service and new organic growth opportunities. The integration process is also a timely and tangible answer to the announced deregulation of insurance distribution in Italy.”

The completion of integration process is expected by fall 2007, “depending on both Shareholders’ meetings approval and clearance by regulatory authorities,” the announcement continued.

The announcment noted that as part of the consolidation Allianz S.p.A will “have a significant representation of independent directors and ensure continuity. The company will be chaired by Enrico Cucchiani, member of Allianz SE Management Board; Giuseppe Vita and Giovanni Gabrielli will be Vice Chairmen; Paolo Vagnone will be CEO. Paolo Vagnone, currently CEO of RAS and Chairman of Allianz Subalpina, will be appointed CEO of Lloyd Adriatico at the next Board meeting.”

The announcement further explained that from fall 2007 the current brands “RAS” and “Lloyd Adriatico” will migrate to “Allianz RAS” and “Allianz Lloyd Adriatico”. “Allianz Subalpina” brand will not undergo any changes. Their distribution networks are to remain separate, with each one operating with its current contract, brand and sales management structure.

“We will leverage and share best competences and talents of all three companies: the managers in charge of key integration work streams will also be immediately in charge of running operations in all three entities”, noted Enrico Cucchiani, member of the Management Board of Allianz SE and designated Chairman of the new company. “This will allow us to remove organizational uncertainties, typical of integration processes, and to reach the expected results faster. We are committed to creating the leading player in the Italian market in terms of product innovation, quality of service and value creation.”

He added that “Italy is important for Allianz not only in terms of revenues and profitability but also for the know-how contribution of local management to the rest of the Group; a clear example is the Trieste-based center of competence in Motor product and tariff development. The integration project announced today eliminates fragmentation of efforts and sets the tone for enhanced growth and success.”

Topics Allianz

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