The primary insurance arm of reinsurance giant
Munich Re is looking to offload two key life insurance books, according to reports.
It was reported in Handelsbatt on Monday that Ergo wants to sell the life insurance books of Victoria Leben and Ergo Leben, with the paper quoting two sources “familiar with the matter.”
“Management wants to collect non-binding bids in mid-November,” the report stated.
A Reuters report added that a decision will be made on indicative offers – and then the company will decide whether their six million insurance policies will be sold or not.
It was stated back in September that Ergo was considering a sale of the life insurance units as insurers struggle to pay guaranteed returns to clients amid low interest rates. Several insurers have offloaded life insurance operations and both of these units have already ceased underwriting for new business.
It is expected that several run-off specialists will bid for the units with the aim of cutting administrative costs in order to return a profit.
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