Voya plans to buy majority of Allianz’s U.S. asset management business

Could 17 (Reuters) – U.S. insurance plan prepare provider Voya Financial Inc (VOYA.N) mentioned on Tuesday its financial investment management unit would consider more than “a substantial bulk” of Germany-dependent Allianz’s (ALVG.DE) asset administration organization in the United States.

The announcement arrives just after Allianz agreed to pay out about $6 billion and its U.S. asset administration unit agreed to plead guilty to fraud over the collapse of its multibillion dollar Structured Alpha cash amid current market turmoil brought on by the COVID-19 pandemic. read through additional

Voya explained it has entered into a memorandum of knowledge with Allianz World-wide Investors (Allianz GI), the asset management division of Allianz. Under conditions of the proposed partnership, Allianz GI would get a stake of up to 24% in Voya’s expenditure management organization.

Voya stated it is anticipating a obtain settlement to be finalized in the subsequent number of weeks.

Just after the deal, Voya’s investment administration unit will take care of approximately $370 bln of assets, the enterprise reported. The planned acquisition will involve no external funding or use of Voya’s surplus cash, it added.

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Reporting by Niket Nishant in Bengaluru Editing by Krishna Chandra Eluri

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