Cologne (ots/PROTEXT) - Gerling Versicherungs-Beteiligungs-AG(GKB) and Swiss Re have reached an agreement on forming a jointventure between Dutch credit insurer NCM, in which Swiss Re has a90 % stake, and the Gerling Credit Insurance Group. The newcompany "Gerling NCM Credit and Finance AG" is to be based inCologne, and Gerling is to have a 51 % holding. Swiss Re willhold 25 % (+ 1 share) and a private group of investors willhold 24 % (- 1 share).
Gerling NCM will have a 25 % stake in the world creditinsurance market and will boast premium income of some euro 1.1bn. With its comprehensive product range for receivablesmanagement services, its international network and its positionin major industrial countries, the new group is set to be theleading integrated credit insurer worldwide.
Following integration of the two companies, an IPO isenvisaged in the medium term, though this will not affect stakesheld in Cologne.
"In the new Gerling NCM Credit and Finance AG, the leadingcredit insurer worldwide will emerge in terms of internationalityand innovation. Gerling Credit and NCM form an ideal jointventure, and the resulting synergies will benefit allstakeholders. Gerling customers worldwide will be offered thebest available solutions and protection in an area ofincreasing concern for corporate risk managers. Thus the newcompany will further strengthen the Gerling Group as a whole",said Dr. Jürgen Zech, Chairman of the Executive Board and CEO ofthe Gerling Insurance Group.
The Chairman of the Executive Board at Gerling NCM will beBernd H. Meyer, currently Chairman of the Gerling Credit Group.The Executive Board of the new company will be formed from thetop management of the existing companies. Chairman of thecompany's Supervisory Board will be Dr. Jürgen Zech.
The Gerling Credit Insurance Group and the NCM Group are anexcellent fit and will be able to take advantage of significantsynergies: - Where Gerling has leading positions in Germany, Belgium,France, Switzerland and Latin America, NCM is a market leader inthe Netherlands, the UK and Scandinavia, and has a sound footholdin Italy and in the growing US market.
- With expanded regional presence, the information and riskportfolio as well as the marketing of classic product solutions,innovative financial products and services (e.g. securitizationof receivables, factoring, forfaiting and collection) will bedefinitely optimized. One example is the increase in Gerling'sproduct portfolio from factoring in France and Italy. NCM ownstwo factoring companies in Scandinavia. The opportunity to offerfactoring at an international level will result in a competitiveedge.
- Combining the two companies enhances their financialstrength, optimizes the reinsurance structure and assetmanagement, and extends the capital base.
NCM (Nederlandsche Credietverzekering Maatschappij) wasestablished in 1925 and, until 1991, concentrated on commercialand export credit insurance, mainly for Dutch firms. Since 1932,it has been a state mandated insurer for export transactions,with political risks being reinsured by the state. Since 1991,NCM has been pursuing an expansion strategy, in which it hasextended both its international network and its product range.Since 1998, Swiss Re has had a 90 % holding in NCM. ABNAMRO and ING Bank hold 5 % each. NCM, the fifth largest creditinsurer worldwide, with 1,800 employees, along with the recentlyacquired Societa Italiana Cauzioni (SIC), had a total revenue ofeuro 528 m in 2000. "NCM and Gerling Credit together will offeran enhanced value proposition to our clients, through specialistrisk management capabilities and diversification," says Gerardvan der Stelt, Chairman of the Executive Board at NCM.
Gerling Credit Insurance, a subsidiary of GerlingVersicherungs-Beteiligungs-AG, was formed in 1954 and has amarket share of 13 %, making it the third largest credit insurerworldwide. In 1994, Belgium-based Namur - Assurances du Créditwas successfully integrated. With it, and with the subsidiariesacquired in the past five years - Étoile (France), Gerling Nordicand Mexican market leader Gerling Comesec - the entire CreditInsurance Group is now operating with 1,700 employeesin 36 countries on all continents. In e-commerce the Gerlingcompanies Trusted Shops, Trusted Trade and Trade Cover havelaunched new B2C and B2B products. In 2000, revenue totalledeuro 608 m. "Our new company will be the integrated creditinsurer with the most comprehensive global network.For the entire service chain of trade transactions we areoffering comprehensive and modular solutions in risk transfer,financing and related services," says Bernd H. Meyer.
The Gerling Insurance Group operates in all areas ofinsurance and reinsurance. As one of the leading German insurers,the Group posted a premium income of euro 9.5 bn in 2000 with12,600 employees. Dr. Rolf Gerling holds 70 % and Deutsche Bank30 % in Gerling Versicherungs-Beteiligungs-AG.
The agreed joint venture requires the consent of the Dutchsupervisory authorities and the European competition authority.The transaction is to be finalized by the end of the year.
JPMorgan acted as financial advisor and Shearman & Sterlingas legal advisor to the Gerling Group of Insurance Companies.
ots Original Text Service: Gerling Versicherungs-Beteiligungs-AG (GKB) Internet: http://www.presseportal.de
For further information:
Gerling Corporate Communications
Dr. Christoph Groffy
Press spokesman
Phone: +49 221 144 7317
E-Mail. christoph.groffy@gerling.de
Swiss Re Media Relations, Zurich
Phone: +41 1 285 3281
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