Oliver Bäte is serious about his announcement to clean house at Germany’s largest insurance firm Allianz and get rid of loss makers.
The contracts to sell Allianz Life Insurance Korea and Allianz Global Investors Korea were signed in at the company’s headquarters in Munich on Tuesday. The buyer is Chinese insurance group Anbang, which is paying more than $3 million, or €2.6 million, for the loss-making company.
The price tag is relatively low as the South-Korean business was a burden on Allianz, and there are even additional costs involved in selling the subsidiary. With the sale, the company is posting a loss of up to a few hundred million euros, an Allianz spokesman told the Reuters news agency.
Still, the company’s departure from South Korea is unlikely to be difficult for Mr. Bäte, who has headed Allianz for more than a year. In 2016, the South Korean business posted an operating loss of €244 million.