EANS-News: Hypoport AG
Dr. Klein & Co. AG: Insurance companies expanding their
lending business
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Company Information/lending business Subtitle: Insurance industry now accounts for almost 50 per cent of Dr. Klein's commercial real-estate finance steady rise in number of insurers in the lending business Lübeck, (euro adhoc) - 30 June 2011: The German insurance industry has significantly expanded its role as a lender in the commercial real-estate finance business. This can be seen in the latest figures from Dr. Klein & Co. AG's business with corporate clients. In the first half of 2011, Dr. Klein brokered loans with a total volume of EUR450 million. Almost half of this amount - EUR220 million - was accounted for by insurers and pension funds, compared to 25 per cent in the first half of 2010. In contrast, the proportion accounted for by the banking sector has declined. It is particularly noticeable that, for a while now, insurers have no longer only been financing small residential property deals with a loan-to-value ratio of up to 60 per cent. Finance partners are also being found in the insurance industry for commercial real estate and large transactions in excess of EUR50 million. However, the maximum loan-to-value ratio is 80 per cent; insurers do not provide finance with higher ratios. There are diverse reasons for this strong expansion of business. Firstly, investment managers at insurance companies and pension funds are interested in investments that are low risk and free of exchange-rate risk - and they have discovered the German real-estate industry. Secondly, less effort is involved in financing real estate than purchasing it. "It's not a flash in the pan", says Hans Peter Trampe, member of the Management Board responsible for this area at Dr. Klein & Co. AG. "The banking sector will have to adjust to far tougher competition from the insurance industry, especially in light of Basel III and Solvency II." There have also been a number of changes in how financing is handled. Although insurers still only offer long-term finance, they have made their other lending and contractual conditions considerably more flexible and are also catering to customers' individual needs. Nevertheless, the requirements set by each insurance company vary significantly. Whereas some insurers prefer to spread risk widely and will not provide finance of more than EUR5 million, others are specifically focusing on deals in excess of EUR50 million. The total number of insurance companies that are becoming lenders is rising all the time. This can also be seen in the latest figures from Dr. Klein & Co. AG. About Dr. Klein & Co. AG Dr. Klein is an independent provider of financial services for private and institutional clients. For private clients, Dr. Klein identifies the ideal products to suit their individual finance-related requirements. Some 550 experts offer advice focusing on all issues relating to current accounts and call money, insurance policies and financial investments, or mortgage financing and private loans. The service is provided over the internet and in more than 180 branch offices. The company is not affiliated to any specific providers. Dr. Klein & Co. AG has been a preferred partner for the provision of financial services to the residential property industry, municipal clients and commercial real estate investors since 1954. Dr. Klein offers its institutional clients comprehensive support, competent advice and customised concepts for financial and portfolio management and business-related insurance policies. Its client-oriented consulting expertise and long years of working closely with all well-known credit and insurance companies ensure that Dr. Klein always has the simplest access to the best possible financial services. Dr. Klein is wholly owned by Hypoport AG, the internet-based financial services provider that is listed on the Frankfurt Stock Exchange. Further inquiry note: Dr. Klein & Co. AG Michaela Reimann Group Communications Manager Hansestrasse 14 23558 Lübeck Phone: +49 (0)30 420 861 936 Email: michaela.reimann@drklein.de www.drklein.de end of announcement euro adhoc -------------------------------------------------------------------------------- company: Hypoport AG Klosterstraße 71 D-10179 Berlin phone: +49(0)30 42086-0 FAX: +49(0)30 42086-1999 mail: ir@hypoport.de WWW: http://www.hypoport.de sector: Financial & Business Services ISIN: DE0005493365 indexes: CDAX, Prime All Share stockmarkets: regulated dealing/prime standard: Frankfurt language: English
Original-Content von: Hypoport AG, übermittelt durch news aktuell