Allianz: The Iberian Project

In December 2007, the Allianz Group created a special taskforce to study the possible integration of the subsidiaries in Spain and Portugal. The different alternatives to be analyzed ranged from a complete merger of the two companies to sharing only some key back-office operations. Although companies in both countries had similar products and structures, their operational philosophies were rather different, since Spain had decentralized many activities to the agents and branches while Portugal had centralized them in a large back-office operation. These difference posed a significant challenge for the integration. The case describes the context, business models and organizational structures of Allianz in both countries, and discusses the pros and cons of each different alternatives.