SV SparkassenVersicherung, the insurer of the German savings banks (Sparkassen), has acquired a stake in Heubeck pen@min through its pension consultancy arm, as it seeks to expand in the occupational pensions market amid reforms to the second and third pillars.
The investment in Heubeck pen@min, a subsidiary of actuarial consultancy Heubeck specialising in occupational pension administration, deepens the strategic partnership between SV SparkassenVersicherung and MRH Trowe, which acquired Heubeck last year.
The deal also lays the groundwork for SV SparkassenVersicherung to strengthen its position in the occupational pensions market.
SV invested via its consultancy SV bAV Consulting, an occupational pensions hub within the savings banks group, to broaden its offering to include administrative services.
Heubeck pen@min provides occupational pension administration services, including individual account management, pension entitlements and plan administration, as well as digital communication solutions.
“We have been working with the savings bank group for many years. Therefore, we are pleased for this joint commitment with a corporate partnership, and to work together on expanding our services,” said Norman Dreger, head of benefits, pensions and compensation at MRH Trowe.
Daniel Strohbach, board member of SV SparkassenVersicherung Pensionsfonds, said occupational pensions are of “strategic importance” for the group.
A resilient administration of pension promises for direct promises (Direktzusage), Pensionsfonds, and other occupational pension vehicles is a “key component” of SV SparkassenVersicherung service, he added.
“Thus, we are entering into a strategic partnership with MRH Trowe and Heubeck, underscored by our investment in Heubeck pen@min GmbH,” Strohbach continued.
The transaction reflects ongoing consolidation in the occupational pensions and consultancy market, as providers seek to scale capabilities and capture opportunities arising from pension reform.
Reforms to Germany’s second-pillar occupational system and third-pillar private pensions are driving a shift away from costly guaranteed products towards defined contribution (DC) plans and private pension accounts with higher equity exposure.
SV SparkassenVersicherung said it supports the reforms and is working to innovate its product range, including new subsidised retirement savings schemes.
“Occupational and private pensions will play a central role in closing the pension gap and counteracting the shortage of skilled workers by increasing employer attractiveness,” said chair Andreas Jahn.
According to research by Deutsche Bank, stronger funded pensions could also support the wider economy by increasing capital available for start-ups and infrastructure.
The bank estimates that funded pensions generate more than €8bn in additional investment into European equity markets each year.
