Allianz has signed a binding settlement to promote its 51% stake in its Saudi Arabian unit, Allianz Saudi Fransi (AzSF), to Abu Dhabi Nationwide Insurance coverage Firm (ADNIC).

United Arab Emirates-based multiline regional insurer ADNIC has agreed to pay SR499m ($133.06m) for the stake.

Allianz mentioned the deal is not going to affect the purchasers and workers of AzSF or its solvency capitalisation and money place.

Arrange in 2007, AzSF is a three way partnership between Banque Saudi Fransi and Germany’s Allianz.

For the German insurance coverage main, the deal is a part of its technique to streamline its operations within the Center East market.

The corporate mentioned its international strains enterprise together with Allianz World Buyers, PIMCO, Allianz Commerce, Allianz Companions and Allianz Re will proceed to function in Saudi Arabia.

ADNIC expects the deal to enhance its monetary efficiency, enhance shareholder worth and enhance its aggressive place within the Gulf Cooperation Council insurance coverage markets, particularly in Saudi Arabia.

In a inventory alternate announcement, ADNIC mentioned: “The transaction suits essentially throughout the core of the corporate’s [ADNIC’s] strategic pillars as it’ll permit it to additional prolong its presence into the Saudi Arabian market, ship and optimise working mannequin efficiencies between the corporate and the goal firm [AzSF], and enhance its shopper retail portfolios as a considerable proportion of the goal firm’s buyer base comes from this section.”

Topic to regulatory approval, the deal is predicted to shut within the coming months.

Earlier this month, Allianz and Sanlam secured regulatory approval to launch a pan-African firm, SanlamAllianz.