The European Commission has granted permission for the proposed acquisition of UnipolSai's P&C insurance business by Germany-based global insurer Allianz.

After reviewing the transaction under the normal merger review procedure, the Commission said that it would not raise competition concerns citing limited overlaps.

Earlier in March this year, Allianz Italy said that it will buy the property and casualty (P&C) insurance business and distribution capacity from an Italian insurer UnipolSai with premiums of €1.1bn.

As per terms of the agreement, Allianz will acquire the business for EUR440m which includes 729 agencies and 500 employees servicing 1.5 million customers in Italy.

Allianz Italy CEO, Klaus-Peter Röhler, said: "I am pleased that we were able to reach this agreement with UnipolSai. Our new customers will benefit from our innovative product and service offer and from our digital business model."

"This transaction provides us with an excellent opportunity to be closer to our customers and potential new customers in the Italian market."

Unipol said that it is divesting the assets to meet Italian regulators. Italy’s antitrust officeers had ordered Unipol to dispose of a portfolio of assets with premiums worth about €1.7bn after it agreed to buy troubled rival Fondiaria-SAI in 2012.

Allianz Italy has nearly 5,000 staff and serves more than six million customers through a multi-channel network with approximately 2,200 insurance agents, 1,600 financial advisors, 1,500 bank branches of bancassurance partners and with the direct company Genialloyd.