GERMANY/SWITZERLAND – Deutsche Bank has announced that it will be wholly acquiring Swiss private bank and asset manager, Rued, Blass et Cie. from its parent company Zurich Financial Services.

The size of the transaction was not disclosed.

Zurich Financial has been looking to sell off its non-insurance business units for some time, although it was believed that asset management arm, Threadneedle, would be the first to be put on the block. Said Axel P. Lehmann, chief executive officer of Zurich Continental Europe: “The sale of Rued Blass marks yet another step in our consequent realignment of Zurich as an insurance-based financial services provider.”

Rued Blass will retain its name and operate as an independent legal entity said a spokeswoman at Zurich Financial Services, and eventually Deutsche will use the company to focus on its Swiss onshore private banking business.

Said Pierre de Weck, global head of Deutsche Bank’s private wealth management unit: “This provides an ideal platform for Deutsche Bank’s entry into the Swiss private wealth management onshore market.”

The deal is forecast as being complete before the end of the first half, although it is hoped that by the end of March the sale will be finalised.

Rued Blass has 7.1 billion Swiss francs invested client assets, and offers asset management, investment advice and financial planning to private clients and high net worth individuals.

The move by either side reflects the increasing popularity of large financial companies to focus on core competencies, selling low-profit businesses and acquiring in more appropriate areas. Deutsche Bank last year sold off its custody business to State Street Global Advisors, and its passive management business to Northern Trust.

The deal is also the second between Zurich and Deutsche – last year Deutsche bought fund manager Zurich Scudder, and sold a 75.9% shareholding, worth one billion euros, in its German insurance operations to Zurich, which included Bonnfinanz, Deutscher Herold Group and DGV.

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