Fidelis Insurance Ireland DAC, a local subsidiary of the specialty re/insurer, has provided a B2B credit default insurance solution for German mortgage company Wüstenrot Bausparkasse AG.
Formed in 1999 from the merger of the two traditional companies Wüstenrot and Württembergische, the W&W Group develops and brokers protection, home ownership, risk protection and asset formation.
The German mortgage market has been experiencing a boom for several years, and from the point view of the bank’s internal risk management, the discrepancy between the purchase price and the determined mortgage lending value is particularly pronounced in Germany.
Simon Crone, Chief Underwriting Officer at Fidelis Insurance Ireland, explained that a credit default insurance will optimise “both aspects and ultimately lead to a lower-risk product range.”
“Credit default insurance also expands the product range in mortgage financing and optimises the lenders’ earnings opportunities,” add Anke Lämmerzahl and Thomas Ehrhardt, managing directors of REMCI Finance GmbH, which is brokering the partnership and will manage it in the future.
Fidelis Insurance Holdings Limited is a privately-owned Bermuda-based holding company, which, through its subsidiaries, is a global provider of specialty insurance and reinsurance products.
