Talanx enters into strategic partnership with Swiss Life

The two companies will co-operate in distribution through AWD

Talanx Group, a Germany-based insurance group, has entered into a strategic partnership with Swiss Life to facilitate co-operation in key areas. Accordingly, Talanx is purchasing a long-term participation of up to 9.9% in Swiss Life. Talanx will also acquire a stake of 8.4% in MLP from Swiss Life.

The two companies will co-operate in distribution through AWD, in the international business with life insurance solutions, in life reinsurance, in operations involving selected products in certain defined areas, and in the reciprocal use of public investment funds.

With this partnership, Talanx aims to further strengthen its market position in the private clients segment in Germany and internationally, and to expand its existing business relations with AWD. Through the partnership Swiss Life intends to drive international growth and to improve its market position in Germany further, following its acquisition of AWD and the stake in MLP.

Talanx already owns 2.9% of Swiss Life and, subject to the approval of the relevant governing bodies, will acquire another 3% from Swiss Life’s own holdings. Talanx will further build up this stake in Swiss Life by purchasing shares on the market. Talanx is not seeking a seat on Swiss Life’s board of directors.

Together with the 1.5% share accumulated in recent months, Talanx now holds a total of 9.9% in MLP. Swiss Life intends to reduce its remaining participation in MLP from 15.9% to below 10%, and is currently holding discussions with potential buyers and MLP. Independently of each other, Swiss Life and Talanx will each seek to co-operate with MLP within the new structure. Both companies will fully respect MLP’s current business model as an independent financial services and asset management provider, said Swiss Life.

As part of the co-operation agreement, it is envisaged that Talanx will become one of AWD’s key product partners.

All arrangements between Swiss Life and Talanx remain subject to the approval of Talanx’s governing bodies.