Allianz seals 7.5bn-euro buyouts

Allianz is one of the world's leading insurers

German financial services giant Allianz is to spend 7.5bn euros ($9.7bn) buying out minority shareholdings in two of its leading European subsidiaries.

Allianz is to acquire the 42% stake it does not own in French insurer AGF and the 9% outstanding holding in Allianz Leben, Germany's top life insurer.

Allianz said the moves would improve client service and boost profits.

Allianz is best known for owning Cornhill Insurance, a UK home and life insurer and Germany's Dresdner Bank.

Allianz employs more than 175,000 staff worldwide with activities across insurance and banking.

It has been consolidating its diverse businesses and last year cut 700 jobs in Germany.

Both AGF and Allianz Leben are focusing increasingly on the private pension market in Europe.

"The transactions will strengthen Allianz's position in its core home markets and business lines," said its chief executive Michael Diekmann. Allianz's shares fell 0.7% to 153.1 euros in early trading in Frankfurt in response to the news.