Life Insurance: Generali sells millions of policies to Viridium

The protest among consumer advocates and experts was huge, as it became known in September of last year that, with Ergo, Axa and Generali, three sectoral companies have the intention to divest millions of clbadic life insurance policies. Ergo followed violent protests in his own work force, opted for the internal processing of about 6 million policies. The market leader, Allianz Leben, has categorically excluded the sale of his clbadic policies in the past.

Generali Deutschland, meanwhile, wishes and will largely give up its traditional fixed rate life insurance policies. The Viridium liquidator will take over 89.9% of Generali's life, said Viridium and the insurer on Thursday.

Generali himself retains the remaining shares and also holds the option to participate with up to 10% of Viridium, According to the stock chart of Hannover Re, Generali Deutschland would be the second partner of the insurance sector to invest in the Viridium group.

Generali Leben, with its some four million insurance contracts, is valued at one billion euros in the transaction, Generali expects a total turnover of 1 billion euros. , 9 billion euros. The supervision of Bafin's insurance must be accepted.

Viridium Announces Profit Sharing May Be Higher

"All contractual obligations to customers remain unchanged," says Viridium in the message. Life insurers should also be able to benefit from cost advantages that could lead to greater long-term profitability.

Indeed, life insurers can sell their contracts without the consent of their clients. The supervision of insurance, which has already left a relatively short time with sales of smaller stocks, will examine this closely. On the other hand, future profit sharing is not guaranteed and is not subject to such scrutiny.

Like the insurers themselves, a liquidator has an excess margin of participation. The problem from the point of view of life badured: The new business is established, the buyer does not have to attract new customers with an attractive profit sharing and therefore has no reason to distribute the horn of abundance on existing customers. "Voluntarily no investor will make money for cowardly customers," also believes Axel Kleinlein, boss of the Federation of the Insured (BdV).

Life insurers have been fighting for years with interest rates still low. The strong promise of return on old contracts with a guaranteed interest rate of up to 4% can not be made difficult in the market. Most life insurers have therefore abandoned their business with traditional policies and now only sell highly market-oriented products where the customer himself bears the investment risk and only the contributions paid are guaranteed.

Developers such as Viridium are ready to accept resume and continue customer contracts until the expiration. Viridium belongs to the financial investor Cinven and the reinsurer Hannover Re.