Reinsurance firm Swiss Re and financial investment firms Resolution Group and Cinven have expressed interest in acquiring two Ergo and Generali German life insurance portfolios, sources told Reuters.
Munich Re’s primary insurance affiliate, Ergo, and Generali’s German subsidiary are among carriers – increasingly driven by record-low interest rates and stringent European capital holding rules – to consider the sale of their portfolios of 6 million and 4 million policies in run-off, respectively.
An Ergo spokeswoman told Reuters the firm was still deciding whether to sell the life portfolio, but would soon reach a conclusion.
Swiss Re and Cinven declined to comment.
Financial services groups specializing in the run-off of life insurance policies acquire policies until their expiry and aim to turn a profit by measures such as cutting administrative costs.
Ergo’s run-off life portfolio boasts assets of about $65 billion, while Generali’s is around $46.5 billion.
The sales of the Ergo and the Generali portfolios would mark the largest ever sale of closed books, according to Reuters.
