German insurer Allianz plans to buy the shares in credit insurer Euler Hermes it does not yet own for around €1.85 billion. 

Allianz said that it struck a deal to buy 11.3% of Euler Hermes' stock for €122 per share in cash, taking its holding to 74.3% of shares. 

It plans to make a public takeover offer for the remaining stock, excluding treasury shares, at the same price, a 21% premium to Friday's closing price. 

"Increasing ownership in Euler Hermes is therefore a logical step for Allianz to deploy capital in strategic businesses delivering solid operating performance, and to strengthen positions in core home markets and in property and casualty in particular," Allianz said in a statement. 

The deal will add about 1% to group earnings per share immediately after closing, Allianz said. 

It said the deal would have no impact on its €2 billion share buyback programme. 

Euler Hermes said in a statement that its supervisory board would meet to deliver a formal opinion regarding Allianz's offer during the last days of December.