Italian financial institution UniCredit has reached a share buy deal to terminate its non-life insurance coverage enterprise with UnipolSai Assicurazioni.

Below the deal, UniCredit will purchase 51% of the issued share capital of Italian P&C insurance coverage agency Incontra.

Following the completion of the deal, UniCredit will promote 50% of Incontra to German insurance coverage main Allianz, thereby changing UnipolSai with Allianz as its accomplice.

For the sale, each UniCredit and Allianz have signed a distinct share buy settlement.

Upon the closing of this deal, UniCredit’s stake in Incontra will improve from 49% to 50%.

Allianz may even personal a 50% stake in Incontra, together with management of the corporate.

The monetary phrases of each offers weren’t revealed and await customary authorisations from the related authorities.

They’re anticipated to be accomplished by the tip of this yr.

In line with UniCredit, the offers can have an insignificant capital impression on it.

In an announcement, UniCredit stated: “The underlying choice of UniCredit’s administration is aligned with the strategic plan ‘UniCredit Unlocked’ aimed to simplify the present bancassurance set-up and to extend flexibility.

“This new settlement is totally coherent with the 2022 preparations between UniCredit and Allianz.

“The completion of the sale and buy between UnipolSai Assicurazioni and UniCredit shall terminate a fruitful partnership, which has been of satisfaction for each events.”

The newest improvement follows a multi-country framework deal reached between UniCredit and Allianz in January final yr.

The deal was geared toward strengthening collaboration between the corporations.