Our business model

Improved returns

Reduced administrative costs: 

• We immediately reduce the cost per policy by 10 per cent from the time of acquisition.
• While the cost per contract normally increases due to fixed costs as the portfolio shrinks, we guarantee fixed costs per contract will remain stable in the future.*
• Viridium and its shareholders cover 100 per cent of the investments in modernising the business. By contrast, the costs are normally shared with customers in German life insurance.
  
  ^{* Partially adjusted for indexed inflation.}

Higher profits allocated to policyholder:

• Policyholders directly benefit from improved profitability due to cost reductions, improvements in the investment portfolio and the stabilisation of what is known as the “risk result”.**

  ^{** Policyholders benefit from higher allocated profits in accordance with the profit-sharing rules of German life insurance – Mindestzuführungsverordnung (MindVZ).} 

• We pass on higher profits through allocations to our customers.
• Since the acquisition by Viridium, we have increased the minimum interest rate* for Proxalto from 1.25% to 2.60%. With a minimum interest rate of 3.35%**, Entis Lebensversicherung is at the top of the German market.
  
  ^{* Minimum interest rate equals guaranteed interest rate plus interest bonus rate.
  ** Minimum interest rate from January 2025 onwards.}

Strong capitalisation

• We ensure a sustainably strong capital base under Solvency II. All life insurers of Viridium Group are capitalised well above regulatory requirements, ensuring high financial resilience.

Sustainable operational stability

• We consolidate and manage previously highly fragmented insurance portfolios on a single, modern business platform, in which we have already invested over EUR 700 million. We continuously improve our existing platform and thereby ensure its operative stability and reliability. 

Lapse ratios, meaning early surrenders by policyholders, are a key indicator of whether policyholders perceive their policies as safe and financially attractive. Since becoming part of Viridium, lapse ratios have declined significantly across all companies:

The lapse ratios of Viridium’s life insurance companies have declined more than the market average since their acquisition by Viridium. As of 2024, the average unit lapse ratio across all four Viridium life entities is approximately 1.7%, below the market average of around 2.7% (source: Statista / GDV).

The acquisition of life insurance portfolios by Viridium transfers the life insurance policies along with all their associated rights and obligations. The rights of policyholders remain unchanged for the entire duration of the contracts, with no action required from policyholders.

When a life insurance company is acquired by Viridium, all relevant agent relationships generally remain in place. This ensures that agreed commissions for distribution partners – such as commissions for sales, premium increases and portfolio maintenance – remain unaffected.

A key priority for BaFin is to ensure that policyholders’ rights are fully protected and the contracts terms are entirely fulfilled in the future.

The acquisition of a life insurance company must therefore undergo a detailed regulatory review, which is conducted to safeguard the interests of policyholders.

Accordingly, all acquisitions of life insurers by Viridium Group have been subject to intensive review by BaFin.