BUSINESS
Allfinanz acquired by Munich Re
12-11-2007
by Deirdre McArdle
Dublin-based firm Allfinanz has been acquired by reinsurance firm Munich Re for EUR48 million in an all-cash deal.
Allfinanz, which develops web-based business processes and underwriting software for the life insurance industry, employs 58 people at its headquarters in Dublin and a regional office in Sydney, Australia. As part of the deal Allfinanz will maintain its brand and will operate as a separate company within the Munich Re group.
"Allfinanz is now recognised as the market leader in the delivery of new business processing solutions to the life insurance industry. We have achieved this through our unrivalled track record of successful delivery coupled with the most sophisticated solution available in the market today," said David Wall, CEO of Allfinanz.
Wall believes the acquisition by Munich Re will help Allfinanz make its products available to a wider global audience, and enable it to speed up innovation at the firm.
Earlier this year the two companies implemented a global marketing and co-operation agreement, and this acquisition seems to be the next logical step in the firms' partnership.
Allfinanz claims its software improves the sales processes of life insurance companies. The software automates sales processes by electronically capturing application details and also automating the underwriting process.
"The combination of the Allfinanz leading-edge technology with Munich Re's global reach and superior risk management skills represents a unique opportunity that will add significant value for our clients in the life insurance sector," said Dr Wolfgang Strassl, Munich Re Board member for life and health reinsurance business.
"Munich Re will participate in the growing profitability of Allfinanz and will also benefit directly through improved quality of its reinsurance business and by higher volumes achieved through clients favouring the combined Munich Re Allfinanz solution. Thus, the acquisition of Allfinanz forms an integral part of our global life strategy and the Changing Gear initiative."
Allfinanz was founded in 1997 and counts HSBC, Standard Life, Prudential, The Hartford, Metropolitan Life, Liverpool Victoria and Bank of Ireland among its customers.
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