The latest acquisition for Frankfurter Leben Group;
The Frankfurter Leben Group, an independent insurer of life insurance portfolios, is acquiring its competitor Athora Deutschland in its seventh transaction. DWS Group will accompany the transaction as a long-term financing partner and work strategically with Frankfurter Leben. The acquisition of Athora Deutschland strengthens the position of the Frankfurter Leben Group, which was founded in 2015, as a specialist in portfolio management and contributes to market consolidation.
“Business as a portfolio insurer thrives on efficiency – in the interests of customers and investors. With the acquisition of Athora Deutschland, we are underlining our ambition to have the best approach to this,” says Dr. Christian Wrede, CEO of Frankfurter Leben Holding GmbH & Co. KG. “DWS’s commitment confirms our stance. At the same time, the strategic partnership with one of the leading asset managers in the insurance sector opens up further development prospects for us.”
High efficiency in capital investment
The management of investments for the insured is one of the core tasks of settlement platforms. The increasing regulatory requirements require a great deal of know-how and access to international investment solutions. The cooperation between Frankfurter Leben and DWS makes it possible to take advantage of corresponding economies of scale and also to gain efficiency in capital investment.
For DWS, the partnership with Frankfurter Leben strengthens two strategically attractive growth areas: business with institutional insurance customers and alternative investments.
“We see existing platforms as a growth area in which we can contribute our know-how in a targeted manner. We are therefore pleased to be able to support Frankfurter Leben, an experienced partner in the consolidation of the German life insurance market,” says Dr. Stefan Hoops, CEO of DWS Group. “With our many years of experience as a leading provider of customer-oriented pension solutions in our home market and our investment expertise in the field of alternatives, DWS is ideally positioned to become the preferred partner for the management of the alternative investments of the Frankfurter Leben Group. This will strengthen our institutional insurance business and expand our presence in the growing market for insurance investments. At the same time, our investment expertise can help to achieve additional performance for Frankfurter Leben’s clients.”
Customer-oriented and cost-effective contract management
“As a specialized portfolio manager with many years of experience in the German market, Frankfurter Leben is ideally positioned to continue leading Athora Germany’s run-off business,” says Todd Solash, CEO of the Athora Group. “The Athora Group continues to focus on expanding its market presence and organic growth in the countries where we operate. Therefore, we are convinced that this transition is the best long-term path for all parties involved.”
The Frankfurter Leben Group offers efficient and cost-effective life insurance contract management that is geared to the long-term goals of policyholders. Customers benefit from a lower cost burden, a profit-sharing in line with the market and very good customer service. Together with the Athora portfolios, Frankfurter Leben will serve around 800,000 customers and an investment volume of around EUR 17 billion in the future. The merger with Athora can achieve further cost advantages. In addition, Athora customers benefit from the migration to modern IT systems and lean administration.
“Overall, we are creating a win-win situation for everyone involved. The reforms in old-age provision are intensifying competition between life insurers and asset managers and increasing the pressure to consolidate. We are ideally positioned for this,” sums up Frankfurter Leben CEO Wrede.
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