Deutsche Financial institution and its asset administration arm DWS Group are weighing the potential for taking a “vital” minority curiosity in insurance coverage firm Frankfurter Leben Gruppe, reported Bloomberg.
The insurance coverage consolidator is majority-owned by Fosun Worldwide.
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Such a transfer would mark Deutsche Financial institution’s return to the life insurance coverage house because it withdrew from the sector roughly ten years in the past.
Sources cited by the information company point out that each Deutsche Financial institution and DWS are contemplating injecting capital into Frankfurter Leben in trade for a stake within the firm.
Discussions stay at a preliminary stage and there’s no certainty that any deal shall be finalised.
Frankfurter Leben at present oversees round 700,000 insurance policies and manages investments totalling roughly €13bn ($15.5bn), with a workforce of 170.
If an settlement is reached, Frankfurter Leben could also be positioned to increase its acquisition efforts and doubtlessly restart providing new life insurance coverage insurance policies, the sources stated.
One potential acquisition goal could possibly be Zurich Insurance coverage Group’s German life insurance coverage enterprise, which has round $20bn (SFr15.34bn) in belongings and is at present up on the market.
Different insurance coverage portfolios at present on supply embody Condor, owned by R+V Versicherung, in keeping with sources.
Moreover, Athora Holding, which is backed by Apollo World Administration, is reported to be contemplating a sale of its German division after going through challenges within the native market, the information publication added.
Spokespeople for Deutsche Financial institution, DWS and R+V refused to touch upon the matter.
Fosun didn’t instantly reply to enquiries exterior normal enterprise hours in Hong Kong.
Deutsche Financial institution’s potential return to life insurance coverage would reverse a method that noticed it divest from the sector over the previous decade, together with previous gross sales of Abbey Life to Phoenix Life.
The financial institution additionally bought its German insurance coverage enterprise, Deutscher Herold, to Zurich Insurance coverage in 2002, the identical portfolio now reportedly being positioned available on the market by Zurich.
DWS has beforehand proven curiosity in coming into the life insurance coverage house and managing related belongings.
