Amsterdam based SFB group, which includes NLG38bn (E17.2bn) SFB Vermogensbeheer, the third party asset management outfit created by the Dutch building industry pension fund has said 50% of its business operations will be “amputated” it may have to sell off its insurance arm SFB Verzekerings, as a result of next year’s privatisation of social security.
Martin Huibrechtse, director at SFB Vermogensbeheer, says the consequences could be enormous: “Not only will we lose half of the business we do here, but also about 2% of our total asset base. It is quite possible that we will sell the insurance arm – SFB Verzekerings. There is also the possibility that our size will be too small to stand alone and there is a fair chance that we will try to seek some kind of co-operation.” Huibrechtse believes SFB Pensioenen (pensions administration) and SFB Vermogensbeheer will become the group’s core business.
BPB – the building workers pension fund managed by SFB is already examining the possibility of alliance with BPMT, the metal industry technicians scheme managed by MN Services and PMI the PVI/Achmea managed scheme for heavy metal industries. Huibrechtse says the building workers fund is also reviewing its contract with SFB.
“Since 1996, we have had set contract limits and at end of this year these contracts will be reviewed. There is a possibility we could lose the contract and that would be disastrous for us as it represents 85% of our turnover.”