Allianz has no plans to join rivals in selling run-off life insurance

[MUNICH] Germany's Allianz has no plans to follow rivals by putting life insurance books up for sale, a senior official said on Wednesday.

Reinsurer Munich Re's Ergo unit is considering options for its insurance businesses Victoria Leben and Ergo Leben, which have ceased underwriting new business, it said last week.

And peer Generali earlier this year also put its German life insurance portfolio up for sale as it restructures in Europe, sources close to the matter said.

A handful of smaller portfolios of the roughly 90 German life insurers have already changed hands, including those of Arag Leben, Delta Lloyd, Basler Leben, Heidelberger Leben and Skandia.

"For Allianz, this (a divestment of existing portfolios) is not on the agenda," Allianz Leben head Markus Faulhaber said in a note to Allianz sales people seen by Reuters.

"We want to win new clients not get rid of them."

Allianz has a market share of 20 per cent in German life insurance and due to its large client volume is able to generate needed returns more easily than its small peers, say analysts.

REUTERS