(Jan 29): Deutsche Bank AG and its asset manager DWS Group are considering taking a significant minority stake in a Fosun International Ltd-controlled life insurance consolidator, people familiar with the matter said, potentially marking the German lender’s return to the market.
The bank and DWS could inject fresh capital into Frankfurter Leben Gruppe to become a shareholder, the people said, asking not to be identified because the information is private. Frankfurter Leben manages about 700,000 insurance contracts with an investment portfolio of around €13 billion (US$15.5 billion, or $19.58 billion). It has about 170 employees.
With the backing of Deutsche Bank and DWS, Frankfurter Leben could pursue a more ambitious acquisition strategy and potentially resume writing new life insurance policies, the people said. Zurich Insurance Group AG’s German life insurance portfolio, which has about US$20 billion in assets and is being put up for sale, could be among the potential targets for Frankfurter Leben, some of the people said.
Other life insurance portfolios that are available in the market include the so-called Condor portfolio owned by R+V Versicherung, the people said. Athora Holding Ltd, backed by Apollo Global Management Inc, is considering selling its German unit after struggling to win sizable business in the market, Bloomberg News reported earlier this month.
Deliberations are ongoing and there’s no guarantee a deal would take place, the people said. Representatives for Deutsche Bank, DWS and R&V declined to comment, while Fosun didn’t immediately respond to a request for comment outside of Hong Kong business hours.
For Deutsche Bank, a return to life insurance would mark an about-face after it exited the business entirely about a decade ago, selling its Abbey Life unit to Phoenix Life. In 2002, the largest German lender also sold its domestic life insurance operations, known as Deutscher Herold, to Zurich Insurance — the same portfolio the Swiss company is considering selling.
See also: Prudential to pause Japan life insurance sales after misconduct revelation
Alongside its full-year results Thursday, DWS said it will use a “substantial” part of its €1 billion excess capital for a special dividend in 2027, subject to “organic and inorganic growth initiatives”.
DWS has for some time explored a move into life insurance and the management of related assets. The Frankfurt-based fund manager has previously teamed up with Prudential Financial Inc and PG3 AG — the family office of Partners Group Holding AG’s founders — on a potential bid for Viridium, Germany’s largest life insurance consolidator. A consortium including Allianz SE and BlackRock Inc bought Viridium last year.
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