Munich Re acquires Allfinanz.
November 2007Munich Re has acquired 100 percent of the shares of Allfinanz, a software company headquartered in Dublin for 48m Euros 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 started earlier this year. By combining Munich Re's expert underwriting rules and reinsurance services together with Allfinanz's software solutions, life insurers throughout the world have access to leading edge technology enabling them to process large volumes of business more efficiently. In addition to increased efficiencies, insurers can expect greater in-depth analysis of their business data and processes leading to continued improvements to the underlying underwriting rules and feedback on many measures impacting insurers' profitability.
Allfinanz will retain its brand and continue to be run as a separate company within Munich Re Group. It currently has a staff of 58 across its offices in Dublin and Sydney.
David Wall, Chief Executive of Allfinanz, says: "Allfinanz is now recognised as the market leader in the delivery of new business processing solutions to the life insurance industry. We have achieved this through our unrivalled track record of successful delivery coupled with the most sophisticated solution available in the market today. The acquisition by Munich Re is an endorsement of this success and we will continue to focus our energies on our core competency of technology delivery, while now being able to leverage the extensive global reach and risk management from Munich Re. This combination will accelerate our ability to innovate and produce exceptional solutions for all our customers."
Dr. Wolfgang Strassl, Munich Re Board member for life and health reinsurance business: "The combination of 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."