Financing your savings and investment business

From organic growth via new product sales to strategic acquisition of whole portfolios or companies

Financing against future flows to support growth

Whether considering the capital and liquidity needs generated from the regular sale of new savings and investment products to retail consumers, or considering a single strategic financing requirement associated with an acquisition or an extraordinary dividend, Munich Re has the financial resources and portfolio analysis capabilities to support such client needs.

Savings and investment portfolios typically generate steady streams of revenue and regulatory surplus from the realization of fee income on fund-linked business, to the shareholder participation in portfolio investment returns.

In either case, such revenues may emerge over many years consistent with the long term nature of insurance savings business.

As a strong financial institution with an understanding of life insurance portfolio dynamics over the long term, Munich Re is a preferred partner for the provision of strategic capital financing against savings and investment portfolios, supporting our clients’ growth ambitions.

Financing situations come in many shapes and sizes

Strategic M&A

The acquisition of closed block life insurance companies has been a dominant strategic theme within the sector for almost 20 years. Over that time, Munich Re has extended capacity to acquirers to finance purchase considerations with long term repayment signatures well matched to the expected emergence of profits from the acquired businesses.

Tactical portfolio acquisition

Sometimes portfolios change hands independently of a traditional company share purchase process. In such scenarios, Munich Re remains equally capable of evaluating the expected performance of the business to be transferred and providing well matched financing against those future flows.

Intra-group capital management

Whether managing capital dynamics between an insurance subsidiary with a bank sector parent or addressing technical ring-fencing constraints within a multi-entity insurance group, the tools used for savings product portfolio financing can often be deployed to solve capital management challenges such as dividend blockers or non-economic capital framework deductions.

New business acquisition costs

Whether it is the financing of agent commissions or initial contract set-up expenses, the ongoing growth of a successful product often comes with an ongoing initial capital and liquidity strain. Munich Re new business financing facilities provide the certainty of committed capital with flexible utilisation according to achieved business volumes week after week, month after month, year after year.