Germany-based insurer Allianz has reportedly agreed to a $700m deal with Goldman Sachs, in a bid to hedge part of its interest in China Pacific Insurance Group (CPIC).


Reuters reported that the deal will allow Allianz to hold on to its current interest in CPIC and lock in profits from investments made by the insurer in the Chinese firm in 2009 and 2011.

As part of the deal, Allianz will sell 147.7 million Hong Kong-traded shares of CPIC at HK$36.77 each to Goldman in future.

Representatives from both firms declined to comment on the deal.

Allianz first purchased stake in CPIC in 2009 and increased its interest further by acquiring $855m worth of shares from equity firm Carlyle Group in 2011.

As per Hong Kong stock exchange data, Allianz currently holds 243.2 million CPIC shares.

Image: Image: Allianz’s current head office in Munich. Photo: courtesy of Oliver Raupach.