Allianz SE (ALV.XE) plans to buy primary insurer Provinzial Nordwest Holding AG, an insurer owned by German public-sector savings banks, daily Financial Times Deutschland reports Friday, without citing sources.

According to the newspaper, Allianz is offering 2.25 billion euros ($2.91 billion), equivalent to Provinzial's book value, and Chief Executive Michael Diekmann met the insurer's three owners recently to discuss the offer.

Spokespeople for Allianz and the savings banks in Westphalia-Lippe declined to comment on the report. Spokespeople for Provinzial and the other savings banks weren't immediately available to comment on the subject.

According to the newspaper, Allianz's market share in core German business segments is either stagnant or declining, which in the past has prompted the company to make acquisitions in that country. The last time it made an acquisition in Germany was 1994, when it bought insurer Vereinte, the newspaper reports.

Newspaper website: http://www.ftd.de

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