Allianz Stock: Nears €3 Billion Viridium Acquisition

Allianz is poised to significantly strengthen its position in the German life insurance market through an exclusive negotiation to acquire Viridium for approximately €3 billion. The Munich-based insurance giant has reportedly outmaneuvered several competitors, including Athora (linked to Apollo Global Management), though the exact timing for completing the deal remains undisclosed. This strategic move would build upon Allianz's impressive financial performance from the previous year, during which the company achieved record revenue and profit figures. The insurer has already rewarded shareholders with increased dividends and a billion-euro share buyback program. For Allianz, which described its last quarter as "by far the most successful of all time," this acquisition represents another component in its ongoing expansion strategy and could unlock additional upside potential for its stock.

Viridium's Valuable Portfolio Management

Viridium has established itself as a specialist in acquiring closed portfolios of old life insurance policies. As a consolidator, the company leverages economies of scale to reduce costs and optimize investment results, generating improved profits while offering policyholders higher returns. Currently managing assets exceeding €67 billion, Viridium increased its net profit to €342 million in 2023. Originally acquired by investment firm Cinven from Lloyds Banking Group for approximately €300 million in 2013, the company has grown steadily through various acquisitions, including a German division of Italian insurer Generali.

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Source StockWorld