BF Rückversicherung acquired by AXA Liabilities Managers
AXA Liabilities Managers is buying the German non-life run-off company BF Rückversicherung.
Its bid was accepted by the German states of Berlin and Brandenburg, who owned the company.
BF Rückversicherung is the former reinsurance arm of German-based and state-owned Feuersozietät. After the sale and the transfer of the direct insurance business at the end of 2003, BF Rückversicherung ceased writing new business and was put into run-off. It was owned by the states of Berlin and Brandenburg. The company wrote reinsurance of aviation, property and satellite risks. Its gross reserves total close to 70 million euros.
The deal is AXA Liabilities Managers' first external market transaction since it was founded in 2001.
“The operational track record and platform we have built over the years enable us to seize growth opportunities outside AXA today,” said Cédric de Linares, President and CEO of AXA Liabilities Managers. “As one of the leaders in our industry, we are happy to bring our expertise and distinct value proposition to the market. BF Rückversicherung, which is made up of 100% non-life reinsurance liabilities, is a perfect fit with our core business and strategy. We plan to use our tried and tested proactive approach to manage this new portfolio: a combination of value generation and professionalism which has been successful for us and for AXA since 2001.”
Rolf Urselmann, CEO of BF Rückversicherung said: “Seeing that BF Rückversicherung’s activity had been stabilised over the last years, the states of Berlin and Brandenburg decided to look for a partner who could provide full closure on the business and manage the portfolio with utmost professionalism. AXA Liabilities Managers provided solutions aligned with both these objectives.”
The transaction is subject to approval by the Berlin senate, the Berlin parliament, and the German insurance regulator BaFin. In parallel, BF Rückversicherung will be converted into a stock company. It is expected that the transaction will close in spring 2010.