- Structural shift in the life insurance sector is increasing the need for external management of closed life insurance portfolios
- Viridium Group is well-positioned for future growth with its new ownership structure
- Further successful financial year in 2025 – Group cash profits after tax of approximately EUR 366 million1 match the high level of the previous year
Viridium Group, Germany’s leading life insurance consolidator, is ready for further growth. With its new ownership structure, the company is well-positioned to meet the growing demand for external management of closed life insurance portfolios in the German market.
“The question is not if the next transaction will take place, but when,” said CEO Dr. Tilo Dresig at a press briefing in Frankfurt. “We have various very relevant discussions. There is a lot of momentum, and this makes us very optimistic. That being said, these are comprehensive strategic processes that take time.”
New ownership structure enables further growth
With its new ownership structure, Viridium has created the basis for future growth. A broad consortium comprised of four leading insurers T&D Holdings, Allianz, Generali, and Santander Insurance, as well as the asset manager BlackRock and the Swiss financial investor PG3, enables the company to again actively pursue and execute transactions.
The business is also performing well from both an operational and financial perspective: The Group’s cash profits after tax for 2025 were approximately EUR 366 million. This result matches the high level of the previous year. The Solvency II ratio remains strong and stable at approximately 260 percent.
Customers benefit from the Group's positive performance: Viridium has raised the minimum interest rate for the third consecutive time, effective from the start of 2026. With 3.4 percent minimum interest rate, Entis Lebensversicherung ranks among the highest in the market. Proxalto Lebensversicherung increased its minimum interest rate to 2.7 percent. This is by far the largest improvement in the entire German market over the past three years2. The Group’s unit lapse ratio fell to its lowest level to date: At 1.6 percent, the lapse ratio is well below the market average, which is at 2.9 percent3. This is a strong sign of customer satisfaction.
Additionally, the Group's capital structure has been further refined in 2025: The global rating agency Fitch awarded Viridium an “Insurer Financial Strength Rating” of ‘A+’4. Viridium issued an initial EUR 850 million Tier 2 bond with a fixed interest rate of 4.375 percent. The strong rating and the successful bond issuance underscore the positioning and quality of Viridium’s business model.
Life insurance market undergoes structural shift
Life insurance remains a key component of private pension provision, but it is facing fundamental changes. Increasing competitive pressure, fixed costs, changing new business requirements and new competitors create meaningful dynamics – which are further accelerated by the upcoming reform of private pension provision in Germany.
“The fragmented structure of the life insurance market undermines its competitiveness and is not in the best interests of customers,” said Dresig. “Many providers face the challenge of developing new products while, at the same time, dealing with the challenges of their existing portfolios. The modernisation of often outdated IT systems alone requires significant investments.”
Closed life M&A is becoming an increasingly relevant alternative
Against this backdrop, the external management of closed life insurance portfolios is becoming increasingly relevant. Whereas low interest rates were the primary driver in the past, IT and strategic considerations are now the key drivers.
“Insurers want to free up resources, so they can better pursue new business underwriting” said Dresig. “The management of existing portfolios remains highly relevant. There is meaningful potential here.”
Viridium has built a single, modern, and highly scalable business platform, in which the company has invested over EUR 750 million to date. As one of the five largest life insurers in Germany, Viridium can leverage significant scale advantages.
Viridium positions itself as a partner that makes an important contribution to the industry’s strategic transformation and competitiveness: By transferring portfolios to Viridium, primary insurers can free up capital and management resources, and reduce complexity. At the same time, customers benefit from improved returns, strong capitalisation and a single, modern business platform.
“With our business model, we can make a significant contribution to the long-term attractiveness of life insurance,” said Dresig. “Consolidation of the fragmented market is necessary and in the interest of all stakeholders. We are ready as an established and experienced partner.”
[1] Financial figures are preliminary; annual report will be published at the end of May 2026
[2] Source: Assekurata-Marktstudie zu Überschussbeteiligungen und Garantien 2026.
[3] Source: GDV: Stornoanalyse 2024-2025.
[4] Rating is assigned to Proxalto Lebensversicherung, Viridium’s largest insurance company.