In addition to transfering a 6.5-per cent stake in Ergo to Munich Re, Allianz said it also planned to transfer a 6.9-per cent stake in American Re Corporation to Munich Re, the insurance firms said in a joint statement.

The move would make Munich Re the sole owner of American Reand give it a total 60.6 per cent stake in Ergo, Germany's second largest primary insurer, the statement said.

After the move, Allianz will control a 3.7-per cent stake in Ergo, the insurance firms said.

In return, Allianz will receive a 15.6-per cent stake in US insurance group Allianz of America from Munich Re, making Allianz the sole owner of Allianz of America.

Allianz will also receive from Munich Re an almost 3.9 per cent stake in Allianz Lebensversicherungs AG, making Allianz the majority shareholder inthe firm with 50.3 per cent of shares, the statement said.

The move reduces Munich Re's stake in Allianz Leben to around 40.6 per cent, the statement said.

Allianz management board chief Henning Schulte-Noelle said the moves would allow a clearer corporate structure for both Allianz and Munich Re, and improves the strategic positions of both firms in Germany and the United States.