The transaction includes a portfolio of 95,000 policies with technical provisions of €1.4bn (£1.2bn) under Solvency II. Allianz stopped writing new business for this portfolio early 2000s. The classic life Assubel contracts which were underwritten prior to 1988 are out of scope.
Allianz and Monument said its priority is to “minimise the impact” of the transfer for both clients and brokers. Therefore, Allianz added it “remains committed” to continue providing high quality services to clients over a period of 18 months and ensuring a seamless transfer of the portfolio.
Under the agreement, all related assets and liabilities of the respective portfolio will be transferred to Monument, with protection of the policyholder rights.
Allianz added that the sale supports its strategy in the area to actively manage its insurance portfolio towards modern life insurance products with an attractive value proposition for Allianz’s customers.
The market share of Allianz in the country remains unchanged at around 6%. Allianz said it also remains committed to the Belgian Market, focusing on open books. Allianz’ employees will not be impacted by the transaction.
Kathleen Van den Eynde, CEO Belgium of Allianz Benelux, said: “With this sale Allianz creates leverage to grow. It will further reduce our operational complexity and strengthen our already solid financial position. 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. We will focus on continuing our growth path in Life, Health, Employee Benefits and further developing our Property-Casualty offering. We look forward to achieving our market ambitions together with our brokers.”
Manfred Maske, CEO of Monument Re Group, added: “We are pleased to announce this transaction, which remains subject to regulatory approval. 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. Following earlier acquisitions of four other Belgian portfolios this transaction with Allianz helps us to substantially increase scale and confirms Monument Assurance’s position as a leading consolidator in the Belgian market.”