Insurance giant Allianz has created a pension sales and advisory firm in a bid to capitalise on an expected boom in German occupational pensions over the next decade.
It says Allianz Pension Partners (APP) would incorporate a 60-member team that, since 2002, has been marketing the MetallRente scheme.
Launched in 2002, MetallRente is an occupational pension targeted at employees in Germany’s engineering and metal-working industries.
Allianz says APP plans to add 30 people to its staff by 2007. Chief executive of the firm is Tobias Pross, who already leads Allianz’s MetallRente marketing team.
APP emerges from Allianz’s projection that Europe’s market for occupational and private pensions will more than double to e16.4trn in 2015 from e7.4trn now. Of the e9trn in new pension assets, Allianz believes 80% will be in France, Germany and Italy.
Beyond continuing to promote the MetallRente, Allianz says APP would open itself to all German companies needing corporate pension products and advice, particularly small- to midsize firms.
Allianz already operates a pan-industry pension fund called Allianz Dresdner Pensionsfonds (ADPF). While ADPF is a German Pensionsfonds, or one of the newer equity-oriented vehicles, APP provides all five forms of pension administration, including that for the Pensionsfonds vehicle.
APP also will offer so-called ‘overtime accounts’ and contractural trust arrangements – two products which are currently heavily in demand from German corporate clients.
In terms of investment products for occupational pensions, Allianz said APP would only offer those from its life insurance arm Allianz Leben and its asset management arm Allianz Global Investors.
Regarding sales goals, Allianz said APP would “seek to build on last year’s very good sales of the MetallRente”. Last year, sales of the occupational pension totalled 140,000, up 44,000 from the previous year. Contributions to the MetallRente fund rose to e176m in 2004 from e120m in 2003.