GERMANY/NETHERLANDS - The German life insurance and Pensionskassen business of Dutch Delta Lloyd will not be taking on any new clients.

Delta Lloyd, which is part of the Aviva group, pointed out in the 2008 annual report of the Pensionskasse that it had been struggling with a "low membership and the comparatively slow business with new customers" in its occupational pension scheme.

It also sold off its pension consultancy in Germany last year while in the previous year it sold off its German investment management branch. (See earlier IPE stories: Delta Lloyd Germany secures pensions consultancy buyout and Delta Lloyd Investment Management GmbH sold)

"As Delta Lloyd is among the smaller providers in Germany, the competitive pressure has become too much," the group said in a statement.

The group said it instead wants to concentrate on its core markets in Belgium and the Netherlands. The spokeswoman noted Delta Lloyd Asset Management operates from the Netherlands and does not have a German office.

The 3,800 member Pensionskasse had just over €16m in assets under management in 2008 and the vast majority of which was invested in fixed-income. 2009 results have yet to be audited.

In total ,the German branch has around 300,000 clients earned mainly through its two life insurance operations, Delta Lloyd Lebensversicherung and Hamburger Lebensversicherung, which also offered insurance-based occupational pension products.

Existing clients will not be affected by the decision to fade out of business in Germany but will continue to be serviced as usual, the group stressed.

However, Delta Lloyd confirmed that "up to one-third" of 600 jobs at the German operations could be lost.

Details, including a possible time horizon, are currently being finalised in talks with employee representatives at Delta Lloyd Germany.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

 

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