AWD sees boom in German corporate pensions
GERMANY – Financial services firm AWD says it is seeing a “boom” in company pensions as well as higher demand for new pension products.
The independent financial advisor said it has gained 1,300 new corporate clients, taking the total to 3,400. It said this – coupled with the hiring of an extra 130 corporate pension specialists – was “evidence of the boom in this business”.
It also saw higher demand for the new pension products that have resulted from German pension reform.
"As a result of the changes brought about by the German Retirement Income Law, demand is increasing for the new Rürup pensions, and especially for the so-called Riester contracts and fund-savings plans," said chief executive Carsten Maschmeyer.
The comments follow indications last week from insurer AMB Generali that the Riester market – which was initially slow to take off - was starting to gain momentum.
AWD’s revenues rose 2.1% to €156.8m in the first quarter. New business came in at around €3.1bn. Earnings before interest and taxes were up 21.1% at €19.5m.
It said: “Throughout the group, the advisory focus was on long-term investment and retirement products.” Investment product revenue rose 57%.
"Our company’s strong focus on boosting profitability and the high free cash flows that we generate open up scope for ongoing high dividend distributions," said chief financial officer Ralf Brammer.