Allianz has made an approach to buy the remainder of the shares available in Euler Hermes for €1.85bn.
The insurance giant says a deal has already been agreed for 11.3% of Euler Hermes' stock at €122 per share, taking its stake in the credit insurer up to 74.3%.
Euler Hermes' remaining stock is also the subject of a public takeover by Allianz at the same price, an offer that is currently under the consideration by the Euler Hermes board.
"Increasing ownership in Euler Hermes is 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.
Plans for Allianz's takeover were originally revealed in June this year, with stocks in French company Euler Hermes immediately leaping to a four-year high.
The two companies' backgrounds are intertwined, with Euler Hermes having formed in 2002 when the Euler Group completed the acquisition of Hermes from Allianz.