Deutsche Postbank AG, Bonn, is to reposition itself in the insurance sector, and has agreed on the sale of its insurance business to Talanx AG, Hanover. The purchase price for the units is €550 million. Pending approval from the antitrust and supervisory authorities, the companies expect the transaction to be concluded in the fall of this year.
The transaction includes two main elements: BHW Lebensversicherung AG, Hamelin, as well as the 50% stake in PB Versicherung AG, Hilden. At the same time, Postbank and Talanx have concluded a long-term marketing cooperation agreement in the field of life insurance and accident insurance. This gives both companies a high degree of planning stability.
Dr. Wolfgang Klein, Chairman of the Board at Postbank says: “I am very happy that we will be able to continue working closely with Talanx, our partner of many years standing. This will give Postbank access to the expertise of Germany’s third-largest insurance group. As our partnership already extends back many years, no major changes to sales processes will be necessary. We will not have any frictional losses. Postbank’s strengths in sales will be combined with the know-how and expertise of Talanx.”
Postbank expects that, together with Talanx, it will achieve considerable double-figure growth rates in sales in the coming years, thereby also generating growth in the commissions from this segment.
Strategic re-alignment of its insurance business will allow Postbank to continue systematically its focus on product areas in which cost advantages can be achieved by means of appropriate economies of scale. In particular, the Bonn-based bank wants to act as a producer in the area of checking accounts, and savings, building society and property finance products. “However, we will mainly concentrate on the sustained expansion of our sales strength and on increasing our knowledge of the customer,” emphasizes Dr. Klein.
In light of the strategic alignment of Postbank as a bank with pension products and a customer base totaling almost 15 million, Dr. Klein emphasized the strategic significance of the insurance business for his company. “This high policy weighting demands the best solution. We are now combining the sales power of Postbank with its 850 branches and 4,300 field consultants with the product know-how and expertise of Talanx.”
In principle Talanx will be the exclusive partner of Postbank in the life and accident insurance business, both in the branches and field sales. In the investment advice area of field sales, Postbank will continue to do justice to the increasingly complex demands of its customers in the best-select approach thanks to various partners, including PB Versicherung. The cooperation agreement offers Postbank attractive remuneration for the new business which it mediates for Talanx as well as extensive sales support measures and a high degree of customer protection.
In addition, with the attractive provision arrangement in the context of the cooperation and ongoing above-average growth in new business, Postbank expects a positive net commission income effect in subsequent periods.
PB Versicherung brand to be retained
Postbank and Talanx have agreed that the products will continue to be offered under the PB Versicherung brand which has been established for the customers. As Dr. Klein says, “This establishes a sense of continuity for our customers and stands for the trust they have in the Postbank brand. They will clearly receive the advise, the product and a uniform service from a single source.” The two partners now want to standardize the product range and offer the best of two worlds. “We will fashion the products PB Versicherung and BHW Leben in such a way that we can always make our customers a competitive offer with regard to the yield or flexibility.”
Talanx and Postbank also achieved agreement on the future of the location and the job security of the almost 100 employees of BHW Leben in Hamelin. The employees will not experience any adverse changes to the wage agreement or company agreement to the end of 2009.
Postbank started its successful cooperation with Talanx AG in 1999. Each company holds a 50% stake in PB Versicherung AG and PB Lebensversicherung AG, both based in Hilden. During the takeover of the BHW Group in early-2006, Postbank also acquired BHW Lebensversicherung AG, Hamelin.
