Deutsche Bank AG and its asset management division, DWS Group, are reportedly considering investing fresh capital into Frankfurter Leben, a life insurance consolidator controlled by Fosun International. According to a Bloomberg News report on Wednesday, the investment would be in exchange for a significant minority stake. Neither Reuters, nor DWS could immediately verify the report, and a DWS spokesperson declined to comment.
Deutsche Bank, Frankfurter Leben, and Fosun have not yet responded to requests for comment. Frankfurter Leben manages approximately 700,000 insurance contracts with an investment portfolio valued at about 13 billion euros. Deutsche Bank is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany. DWS Group is an asset management company, also headquartered in Frankfurt, Germany.
A backing from Deutsche Bank and DWS could provide Frankfurter Leben with the resources to accelerate its acquisition strategy. Additionally, the capital injection could enable the company to potentially resume writing new life insurance policies, according to the report. The move comes as the insurance sector faces increasing pressure to consolidate and adapt to changing market conditions.
Frankfurter Leben focuses on consolidating and managing existing life insurance portfolios. Further details regarding the potential investment, including the size of the stake and the amount of capital being considered, remain undisclosed. Investors will be watching closely for any official announcements from the involved parties.
