Allianz Global Automotive and Volkswagen Financial Services (VW FS), a wholly-owned subsidiary of Volkswagen, have signed a letter of intent, agreeing to strategically expand their 60 year-old partnership, to strengthen their international cooperation and focus on emerging markets.

According to the Allianz, the aim is to considerably expand joint activities at international level, and allowing both the companies to be exploited. The focus will be on the BRIC growth markets (Brazil, Russia, India and China).

As part of the letter of intent, both partners have agreed not only to focus more on profitability, but also to expand the business model from a qualitative perspective with focus on growth.

Michael Diekmann, CEO of Allianz, said: Business with automotive manufacturers is a key global growth market in the highly competitive auto insurance business. We want to use the recent global strategic positioning of this business area to offer our automotive partners and their customers even better services in the future.

Karsten Crede, head of global automotive, member of the board of Allianz Versicherungs, said: The partnership between Allianz and Volkswagen is a win-win situation for both partners. By offering tailored products and multi-channel sales, we can provide our insurance customers with significant added value and at the same time we can help the Volkswagen Group to live up to the promise behind its brand name by offering quality and service.