2 February 1998
Press Release
Commercial Union set to acquire Berlinische Leben
Munich Re - the majority shareholder - and Allianz AG plan to sell their stakes totalling just under 95% in Berlinische Lebensversicherung AG, Wiesbaden, to Commercial Union plc, based in London. A letter of intent to this effect has been signed. The sales price for 100% of the company will be DM 570m.
Berlinische, with premium income of approx. DM 830m in 1997 and a marked focus on credit life business, ranked in 1996 among the top 30 life insurers in Germany. It has a share of around 1% of the German life market, and its in-force sums insured amount to approx. DM 29bn.
Munich Re holds 64.6% and Allianz 30% of Berlinische's share capital. The company paid a dividend of 22% for 1996.
Commercial Union is one of the largest UK based composite insurers and operates worldwide. Its premium volume for 1996 was £ 8,242 m.
The transaction is expected to be completed in the first half of 1998 after conclusion of the due diligence procedures and regulatory approvals.