Versorgungswerk der Zahnärztekammer Berlin (VZB), the pension fund for dentists in Berlin, Bremen and the state of Brandenburg, is facing losses following an investment made in the now insolvent insurtech start-up Element Insurance.
The pension scheme is one of the main investors in the Berlin-based start-up, with a 27.14% stake in the company, according to Element Insurance’s 2023 solvency report, the latest available.
Ralf Wohltmann, the director of the pension scheme for dentists, was the chair of Element’s supervisory board, as of 2023, according to the report.
Private and Institutional investors have invested around €150m in the start-up over the years through different funding rounds, according to reports.
The shareholding structure might have changed last year following a capital increase conducted at the end of the 2023 fiscal year, but registered in 2024, it added.
According to a report in the Frankfurter Allgemeine Zeitung newspaper, VZB has sent a letter to its members saying that their stake in Element was more than 80% after the last financing round.
Signals Venture Capital, the venture capital arm of insurance company Signal Iduna, is “no longer involved in Element,” a spokesperson for the company said.
The venture capital firm exited before the financial supervisory authority filed an insolvency proceeding for Element before a district court in Berlin in December.
Element, which specialises in property insurance, continues to operate its business with the aim of transferring its portfolio of contracts to a solvent insurance company, the statement added.
BaFin is committed to ensuring that the interests of the insured are protected despite Element’s financial situation, it said.
Looking ahead, an investor might take over the company and continue business operations, or the restructuring may be successful, or the company will be wound up as part of bankruptcy proceedings.
VZB has been under the spotlight after writing off assets worth around €64.93m in 2023, and for investments made in a shrimp farm, a recycling company in Ghana, hotel companies and a start-up.
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Luigi is IPE's Berlin-based DACH correspondent.
His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market.
He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile
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