Munich Re acquires Allfinanz, a leading provider of software for life insurance companies
2007/11/12
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Munich Re has acquired 100% of the shares of Allfinanz, a software company headquartered in Dublin, for €48m in cash. Allfinanz is a leading provider of web-based business processing and underwriting automation software to the life insurance industry.
The acquisition follows on from the implementation of a global marketing and co-operation agreement between Allfinanz and Munich Re, which successfully started earlier this year.
Allfinanz software can significantly improve the sales processes of life insurance companies, as it allows them to issue policies to most clients in one efficient, automated process. Following the collaboration between Allfinanz and Munich Re, the software incorporates Munich Re medical underwriting questions that have been designed to be as short and simple as possible for potential customers to answer. The software, together with the underwriting rules, enables insurance companies to win more business and decrease the cost of the sales process.
By combining Munich Re’s expert underwriting rules and reinsurance services with Allfinanz’s software solutions, life insurers have access to leading-edge technology enabling them to process large volumes of business more efficiently. Insurers can expect greater in-depth analysis of their business data and processes, leading to continued improvements in the underlying underwriting rules and processes.
Allfinanz will retain its brand and continue to be run as a separate company within the Munich Re Group. It currently has a staff of 58 across its offices in Dublin and Sydney.
Dr. Wolfgang Strassl, Munich Re Board member for life and health reinsurance business: "The combination of the Allfinanz leading-edge technology with Munich Re’s global reach and superior risk management skills represents a unique opportunity that will add significant value for our clients in the life insurance sector. Munich Re will participate in the growing profitability of Allfinanz and will also benefit directly through improved quality of its reinsurance business and by higher volumes achieved through clients favouring the combined Munich Re Allfinanz solution. Thus, the acquisition of Allfinanz forms an integral part of our global life strategy and the Changing Gear initiative."
David Wall, Chief Executive of Allfinanz, says: "The acquisition by Munich Re is an endorsement of our success so far and our unrivalled track record. This combination will accelerate our ability to innovate and produce exceptional solutions for all our customers."
Münchener Rückversicherungs-Gesellschaft
signed Dr. Strassl signed Dr. Lawrence
Founded in 1987, Allfinanz is the market leader in providing new business processing and underwriting automation software to the life insurance industry. By electronically capturing application details and automating the underwriting process, Allfinanz solutions deliver Straight Through Processing (STP) for life insurers, and in so doing slash costs and drive greater profitability.
Allfinanz has enabled STP and "instant issue" at insurers and banks worldwide, who are now able to approve up to 80% of new applications at the point of sale for a variety of life insurance products across a range of distribution channels (including intermediary, call-centre, bancassurance, agent and direct channels). This has been accompanied by a significant reduction in new business acquisition costs – by up to 85% in some cases. Allfinanz is headquartered in Dublin, Ireland, and has a regional office in Sydney, Australia, as well as support offices in the UK, the US, Hong Kong and South Africa.
Learn more at www.allfinanz.com.
The Munich Re Group operates worldwide, turning risk into value. In the financial year 2006, it achieved a profit of €3,519m, the highest since the company was founded in 1880, on premium income of approximately €37bn. The Group operates in all lines of business, with around 37,000 employees at over 50 locations throughout the world and is characterised by particularly pronounced diversification, client focus and earnings stability. With premium income of around €22bn from reinsurance alone, it is one of the world's leading reinsurers. Its primary insurance operations are mainly concentrated in the ERGO Insurance Group. With premium income of almost €17bn, ERGO is one of the largest insurance groups in Europe and Germany. It is the market leader in Europe in health and legal expenses insurance, and 33 million clients in 25 countries place their trust in the services and security it provides. The global investments of the Munich Re Group amounting to €177bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.
This media information contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of Munich Re. The company assumes no liability to update these forward-looking statements or to make them conform to future events or developments.