ING Canada and Allianz Group today announced the closing of their previously announced share purchase agreement for the acquisition by ING Canada of Allianz’s Canadian property and casualty insurance operations.

The purchase price amounts to $370 million, which is expected to be financed partly through the proceeds of the planned initial public offering of ING Canada shares.

Under the terms of the agreement, ING is acquiring Allianz of Canada Inc. and its subsidiaries Allianz Insurance Company of Canada, group insurer Trafalgar Insurance Company of Canada as well as Canada Brokerlink, a network of insurance brokerages operating in Ontario and Alberta.

Allianz will however retain its Canadian industrial lines business, which is part of Allianz Global Risks (AGR).

On a pro forma basis, as if the acquisition had occurred on Jan. 1, 2004, ING Canada’s direct written premiums for the first nine months of 2004 would have amounted to $3.152 billion with total assets as at Sept. 30, 2004 of $8.941 billion.

The Allianz acquisition with its portfolio of personal and small to medium commercial lines business is expected to reinforce ING’s position in its core businesses and expand its national presence.

ING Canada is the largest provider of property and casualty insurance in Canada based on direct premiums written in 2003. Its principal insurance products are automobile, property and liability insurance.