Achmea considering selling off its life insurance division: report

Insurer Achmea is considering selling off its life insurance branch, Achmea Pension and Life. The division is struggling with declining income and unchanged costs, and the insurer asked investment bank JPMorgan to map out the possibilities for the branch’s future, sources within the insurance sector told Financieele Dagblad.

The insurer confirmed to FD that it is “exploring options for the portfolios of Achmea Pension and Life.” A spokesperson said that “several internal and external options” are on the table.

If Achmea decides to sell, it will be a massive transaction. According to FD, the insurer has an estimated 800,000 policies, good for a buffer capital of approximately 3 billion euros, in its Pension and Life division. The sales proceeds could come close to this, experienced investment bankers told the newspaper.

Achmea could also choose to reinsure the payment obligations of the life policies for a few years, releasing the buffer capacity. Or the company could try to cut costs and keep the division running for a little longer.

Achmea is the largest insurer in the Netherlands in terms of turnover - approximately 21 billion euros last year. In recent weeks, the insurer has been in discussions with five victim associations and foundations claiming more compensation for the over 800,000 investment insurance policies the insurer sold in the past. The foundations and associations represent several tens of thousands of Dutch people.