Under the deal, Allianz Benelux will transfer classical life retail insurances along with 4,500 mortgage loans
Allianz Benelux (Belgium) has signed a deal with Monument Re for transferring a closed book portfolio to the latter’s subsidiary Monument Assurance Belgium (MAB).
Under the deal, the subsidiary of German insurer Allianz, has agreed to transfer classical life retail insurances along with 4,500 mortgage loans and also to transfer the associated operations within 18 months upon receiving regulatory approvals.
The portfolio to be transferred has 95,000 policies with technical provisions of €1.4bn under Solvency II.
Allianz said that since the early 2000s it had stopped writing new business for the portfolio. The German insurer revealed that the classic life Assubel contracts that were underwritten before 1988 are out of scope.
The priority of Allianz and Monument Assurance Belgium will be for minimising the effect of the transfer for clients as well as brokers. Considering this, Allianz Benelux has committed to continue in serving the clients over a period of 18 months and ensuring a seamless transfer of the portfolio.
As per the terms of the agreement, all the associated assets and liabilities of the respective portfolio will be transferred to the Monument Re subsidiary, with the protection of the policyholder rights.
Monument Re Group CEO comments on the deal with Allianz Benelux
Monument Re Group CEO Manfred Maske said: “We look forward to welcoming the policyholders to Monument and would like to take the opportunity to assure them of our commitment to maintaining the high quality service and security that they have enjoyed at Allianz.
“We view Belgium as a key market for Monument Re and we are very pleased to now have the opportunity to take a significant step in realizing our ambitions.”
According to Allianz, as Monument Assurance Belgium is specialised in acquiring and managing classical life portfolios in Europe, its expertise, focus, and growing scale put it in a position to generate sustainable benefits for the policyholders.
The deal is said to be in line with the German insurer’s strategy in Belgium to manage its insurance portfolio actively towards modern life insurance products with an attractive value proposition for its customers.
Allianz Benelux Belgium CEO said: “With its strong track record in acquiring and integrating policies and policyholders, we believe MAB is the ideal candidate to take over this portfolio.
“Allianz remains fully committed to Belgium and this transaction is consistent with our priorities to serve customers with our core innovative unit-linked and protection solutions.”
The closing of the deal is subject to regulatory approval.