ALIZF - Allianz agrees to reinsure $35B in liabilities unlocking $4.1B in value

Allianz's (OTCPK:ALIZF) U.S. subsidiary Allianz Life enters into a reinsurance agreement with affiliates of investment firm Sixth Street for a $35B fixed index annuity portfolio, the company says in a release. Shares of ALIZF gain nearly 2% so far on Friday. This transaction, which is the biggest so far for Allianz Life (OTCPK:ALIZF) in terms of size of life back books, will unlock $4.1B in value and free up regulatory capital. Additionally, the deal is expected to improve the company's solvency II ratio by about 9 percentage points to 216%, on a pro-forma basis. The agreement will also maximize Allianz Life's (OTCPK:ALIZF) competitive advantage as an asset gatherer, enabling it to pursue growth in core markets and expand through new product offerings, distribution channels and customer pools, the company says. Meanwhile, Allianz's (OTCPK:ALIZF) asset management business will "benefit from the brand and reach of Allianz Life, with increased growth in assets under

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Allianz agrees to reinsure $35B in liabilities, unlocking $4.1B in value