UPDATE 1-Commerzbank, Generali insurance accord to end

(adds date of expiry, Generali co-CEO comments)

MILAN, Aug 31 (Reuters) - Italy's Assicurazioni Generali (GASI.MI) will end its insurance partnership with Commerzbank that accounts for 4-5 percent of new business in the country now the German bank has struck a deal with rival Allianz (ALVG.DE).

Generali's co-chief executive Sergio Balbinot added on Sunday that the insurer saw the deal as a good strategic move for Commerzbank (CBKG.DE), in which it holds a 10 percent stake.

Allianz has agreed to sell its Dresdner Bank unit to Commerzbank and become the new bank's biggest shareholder.

Commerzbank, in its statement on Sunday detailing the accord with Allianz, said its "previous partnership in the insurance sector with Generali will expire in 2010."

Balbinot said Generali was "open to discussing a solution on this matter that would safeguard the interests of all parties concerned."

The new bank created by Dresdner's sale to Commerzbank will offer Allianz' insurance products through an exclusive sales agreement, Allianz said in a separate statement.

Balbinot said the transaction "makes strong strategic sense for Commerzbank."

"As major investors in Commerzbank our group's priority has been to ensure any transaction represents proper value for all our own shareholders. We believe this agreement fulfills that requirement," he added.