Dublin-headquartered Allfinanz, which makes underwriting automation software for the insurance business, has been acquired by €22bn-a-year German insurer Munich Re for €48m in cash, it emerged this morning.
The origins of the acquisition stem from a global marketing agreement between Allfinanz and Munich Re that began earlier this year.
The strategic rationale behind Munich Re’s acquisition of 100pc of Allfinanz’s shares is that life insurers around the world will have access to technology that will allow them to process large volumes of business more efficiently.
As well as this insurers will be able to access in-depth analysis of their own business data and processes.
“Allfinanz is now recognised as the market leader in the delivery of new business processing solutions to the life insurance industry,” explained David Wall, chief executive of Allfinanz.
“The acquisition by Munich Re is an endorsement of this success and we will continue to focus our energies on our core competency of technology delivery, while now being able to leverage the extensive global reach and risk management from Munich Re,” Wall added.
Under the terms of the deal Allfinanz, which was set up in 1987 and employs 58 people in Dublin and Sydney, will retain its brand and identity and continue to be run as a separate company within Munich Re.
“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,” said Dr Wolfgang Strassl, board member for Munich Re’s life and health reinsurance business.
“The acquisition of Allfinanz forms an integral part of our global life strategy and the Changing Gear initiative,” Strassl added.
By John Kennedy