The European Partnership Takes Off; Allianz-AGF Deal Cleared

The merger task force of the European Union earlier this month approved the friendly takeover of 51 percent of Assurances G‰n‰rales de France (AGF) by Allianz AG. The decision clears the way for AGF's consolidation into the Allianz Group, effective back to April 1, 1998.

Allianz chairman Dr. Henning Schulte-Noelle and AGF chairman Antoine Jeancourt-Galignani welcomed the green light from Brussels. "A new global player with a strong European home base is born," the Allianz chairman says. "Now we can fully dedicate our energies to making this alliance work and to making use of existing potential to add value to the new Allianz Group, which in turn will benefit our shareholders, customers and employees."

"We are fully determined to make the most of this association in the interest of all AGF parties concerned," adds Jeancourt-Galignani.

Now Allianz and AGF will proceed with the implementation of this partnership. In Spain the operations of Allianz RAS, AGF Union-F‰nix and Ath‰na will join forces. At present these companies are examining the legal details for a merger. This will create the third largest insurance group in the Spanish market, with premium income of PtaS 200 billion, financial assets of PtaS 500 billion and 2.5 million customers.

Allianz and AGF also decided to merge the two regional head offices of the companies in Singapore and to integrate the companies' industrial insurance business for large corporate customers in the Asia-Pacific region into one unit in Singapore. A French desk will serve large French corporate clients throughout this region.