Allianz To Delist From NYSE, Some European Exchanges

Allianz SE (AZ), Europe's largest primary insurer by gross premium income, Tuesday said it would delist from the New York Stock Exchange and other European stock exchanges in a move to reduce reporting complexities.

The U.S. delisting will affect its American Depositary Shares and 8.375% undated-subordinated callable bonds for which the last trading day will likely be around Oct. 23, Allianz said.

Subsequently, it will also delist ordinary shares on the London, Milan, Paris and Swiss stock exchanges to focus on the Frankfurt Xetra trading platform as the market with the highest liquidity, used by the majority of international investors.

Allianz said the decision won't affect its strategy nor its geographic presence in markets, but that it is an adjustment to international stock trading practices.

"Allianz adjusts to international trading practices and by doing so reduces the complexity of its presence in the capital markets," Chief Financial Officer Paul Achleitner said. "The vast majority of international investors already uses our listing in Frankfurt to buy and sell Allianz shares."

Allianz noted that in recent years, trading of Allianz shares on non-German stock exchanges accounted on average for significantly less than 5% of the total trading of Allianz shares, despite the fact that approximately 70% of Allianz shares are held by investors outside of Germany.

The delistings are likely an efficiency-boosting measure as they will reduce reporting requirements, said Merck Finck analyst Konrad Becker, who rates the share at buy.

The fact that less than 5% of shares was traded outside Xetra despite the majority of foreign shareholders signals that the U.S. listing likely didn't meet expectations such as broadening the shareholder base, raising attention for the share and using the share as acquisition currency, Becker said.

He said the decision will concentrate liquidity and raise the trading volume on Xetra, but said the impact would be limited.

The decision doesn't mean that Allianz will exit from the U.S. market, but it could encourage other players to rethink their U.S. listing, Becker said.

Company Web site: www.allianz.com

-By Ulrike Dauer, Dow Jones Newswires; [phone]; [e-mail]