DWS will manage a share of alternative assets of Frankfurter Leben, following the takeover of Athora Deutschland by the German Pensionskassen and life insurance group.
Today, Frankfurter Leben announced the takeover of Athora and its subsidiaries in Germany for an undisclosed sum.
As part of the deal, DWS provided a “low-to-mid double-digit million-euro” sum to Frankfurter Leben, which issued Restricted Tier 1 (RT1) bonds, to finance the acquisition of Athora, according to a statement released by DWS and Frankfurter Leben.
In exchange, DWS will manage a share of alternatives amounting to 20-25% of the total €17bn in assets under management by Frankfurter Leben, IPE understands.
“We support the transaction with the investment, and for us the management of alternatives is a primary focus,” a spokesperson for DWS told IPE.
The investment strengthens two strategic growth areas for DWS, the business with institutional clients and alternative investments.
“We are strengthening our institutional insurance business and expanding our presence in the growing market for insurance investments. At the same time, our investment expertise can help generate additional performance for Frankfurter Leben’s clients,” DWS chief executive officer Stefan Hoops said.
Todd Solash, CEO of Athora, added that following the acquisition by Frankfurter Leben, the group remains focused on expanding its market presence and driving organic growth in the countries where it operates.
“We are convinced that this transition represents the best long-term path for all parties involved. As a specialised manager with extensive experience in the German market, Frankfurter Leben is ideally positioned to continue managing Athora Germany’s run-off business,” Solash added.
Athora maintains insurance businesses in the Netherlands, Italy and Belgium, backed by Apollo Global Management and Athene Holding Limited, and long-term institutional investors such as a wholly owned subsidiary of the Abu Dhabi Investment Authority.
Last year, Athora acquired UK-based pension risk transfer specialist Pensions Insurance Corporation Group (PIC) for £5.7bn.
