AXA Liabilities Managers announces the acquisition of SOVAG’s run-off portfolio
Paris, September 7th, 2018
AXA Liabilities Managers announces the acquisition of SOVAG’s run-off business (Germany). AXA Liabilities Managers confirms 20th transaction on the external market.
The specialist run-off acquirer and manager, AXA Liabilities Managers (AXA LM), announced today that it has entered into an agreement to acquire the run-off portfolio of Hamburg-based (re)insurance company Schwarzmeer Und Ostsee Versicherungs-AG (SOVAG). SOVAG ceased underwriting all lines of business in December 2016. The book total €85 Million of gross outstanding reserves and consists of Inward Reinsurance Business and Direct Business. The transaction is subject to regulatory approval and the investment will be made through AXA Liabilities Managers’ investment vehicle.
Founded in 2001 to proactively manage AXA’s non-life reinsurance liabilities, AXA LM signs its 20th acquisition on the external market and its 12th with a German seller.
“We are very satisfied that we were able to reach a final agreement with SOVAG. Thanks to our experience in the German market and our ability to execute deals, we are confident that we can bring this transaction to a close and start to proactively manage the run-off that SOVAG has entrusted us with". Sylvain Villeroy de Galhau, CEO – AXA Liabilities Managers
“The transaction with AXA LM represents a major landmark in the successful restructuring of SOVAG. With AXA LM, we have found a first-class partner to take care of the SOVAG non-life portfolio. It has been an impressive journey that we hope to complete by the end of this year.” Arndt Gossmann, CEO/Chairman – SOVAG
Allen and Overy LLP acted as advisor for this transaction.
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