Raiffeisen and Helvetia have had an exclusive distribution partnership for two decades. Now, the two firms have decided to part their ways.
The cooperation, that held since 1999, is over: Helvetia, the insurance firm, and Raiffeisen, the cooperative banking group, have decided to sever their ties, according to a statement on Wednesday. The two companies said that the separation was amicable.
Switzerland’s third-largest bank in fact had been looking for a new partner ever since the first half of 2019 and is currently in talks with a company that it didn’t name in the statement. The bank in 2017 had divested the stake it held in Helvetia, an investment that had helped firm the tie-up in the past.
Rival Interests in the Mortgage Business
The separation will allow the two ex-partners pursue business avenues separately. It wasn’t a surprise that Helvetia’s interest in the real-estate business had been frowned upon by Raiffeisen, which is the No. 1 in the mortgage market of Switzerland.
Moneypark, a company owned by Helvetia, which is active in the brokerage of mortgages, has moved up into second spot behind Raiffeisen in the business with new mortgages.
Minor Effect on Helvetia Profit
In the statement released on Wednesday, Helvetia accounted for the contribution from the cooperation agreement in 2019. The insurer generated a premium volume with mainly with the Swiss individual life business in the «mid two-digit millons». It corresponded to just under ten percent of the new business in this area. The resulting contribution to earnings had only a minor effect in the low-single digit millions on the profit of Helvetia in 2019.
The decision has no influence on current customer relationships involving Helvetia and Raiffeisen.
