Fidelis Insurance Ireland DAC, a local subsidiary of a specialized reinsurer, provided a B2B credit default insurance solution for the German mortgage company Wüstenrot Bausparkasse AG.
Founded in 1999 as a result of the merger of the two traditional companies Wüstenrot and Württembergische, the W&W Group deals with development and brokerage protection, property ownership, risk protection and asset formation.
The German mortgage market has been booming for several years, and in terms of the bank’s internal risk management, the discrepancy between the purchase price and the set value of mortgage lending is particularly noticeable in Germany.
Simon Crown, chief underwriting officer at Fidelis Insurance Ireland, explained that credit default insurance would optimize “both aspects and ultimately lead to a lower risk product range.”
“Credit default insurance is also expanding the range of mortgage finance products and optimizing the income earning opportunities for lenders,” add Anke Lemmerzal and Thomas Erhardt, Managing Directors of REMCI Finance GmbH, which will broker and manage the partnership in the future.
Fidelis Insurance Holdings Limited is a private holding company based in Bermuda that, through its subsidiaries, is a global provider of specialized insurance and reinsurance products.