MLP acquires DOMCURA Group – targeted expansion of a further business segment

• Successful business model of DOMCURA as an underwriting agency will be expanded – MLP opens up new potential in the non-life insurance segment
• Further broadening of the revenue base makes MLP even less dependent on short-term market influences
• Very high continuity ensured for DOMCURA business partners

Wiesloch, 16th June 2015 – Following the acquisition of the investment specialist FERI and its successful expansion to an important pillar of revenue over the last few years, the MLP Group now enters another strategically relevant business segment with the acquisition of the DOMCURA Group. As an underwriting agency, the group draws up, develops and realises comprehensive coverage concepts from the entire marketplace in the non-life insurance segment. DOMCURA will continue and significantly expand this successful business model. At the same time, there is considerable potential arising from the synergies with the existing MLP business, in particular in terms of process management.

The purchase price for 100 per cent of the shares of the Schwarzer Familienholding GmbH is EUR 18 million. EUR 12 million thereof will be paid in cash. The remaining sum of EUR 6 million is settled through issuing new MLP shares as a capital increase against contributions in kind. This will result in a slight increase in share capital of 1.35 per cent.

As of January 1, 2015, MLP is entitled to a share in profits for 100 per cent of the shares. 75 per cent of the shares will be transferred in the first stage, with the remaining 25 per cent initially being retained by the DOMCURA founder Gerhard Schwarzer. MLP anticipates a positive earnings contribution already for 2015.

DOMCURA was founded in 1980 and has a workforce of 289 employees. The company develops coverage concepts in the non-life insurance segment, which are currently used by around 5000 market participants. Unlike an insurer, however, an underwriting agency is not a risk carrier; rather, it selects the appropriate risk carrier for its coverage concepts from the entire marketplace. The complete process management – from contract management to service – is carried out by DOMCURA.

“Over the last few years, we have developed our business considerably further. We have established additional pillars of income and thereby made MLP less dependent on short-term market influences. With the acquisition of DOMCURA we are continuing down this path and significantly broadening our revenue base," comments Chief Executive Officer Dr. Uwe Schroeder-Wildberg. "Now that we have established a highly stable income component in the institutional investors segment with the expertise of FERI, we will in future also have a significant offering for all market participants in the non-life insurance segment."

A very high level of continuity is secured for the business partners of DOMCURA: The company will continue to be run by its successful management and retains its headquarters in Kiel. At the same time, the founder and Chairman of the Executive Board, Gerhard Schwarzer, will participate in the long-term success of MLP through the share component. "As a part of the MLP Group we can secure and considerably develop our business model in the long term. We will continue to be a strong and reliable business partner in the future, too," comments Gerhard Schwarzer.

Through the acquisition, MLP can exploit the potential in the non-life insurance segment in its existing private and corporate clients business even more effectively, as the client support and contract processing will be significantly facilitated. "In future, our clients will receive all services from a single source and we will be able to further improve the price-performance ratio," says Manfred Bauer, member of MLP's Executive Board responsible for product management. "The non-life insurance segment will grow in importance throughout the market over the coming years. With this acquisition, MLP will significantly profit from this development."

In the financial year 2014, the DOMCURA Group generated revenue of around EUR 60 million and earnings before interest and tax (EBIT) of EUR 1.7 million.

The capital increase will take place within the scope of the capital authorised by the Annual General Meeting 2014 and under exclusion of subscription rights. Thus the share capital of MLP AG will increase by 1.35 per cent from EUR 107,877,738 to EUR 109,334,686. A lock-up period of six months applies to the new shares following their issue. The transaction is subject to approval by the cartel authorities.

MLP received consulting from Deloitte & Touche, GSK Stockmann + Kollegen and INNOVALUE in connection with the transaction.

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Presentation Acquisition of the DOMCURA Group (PDF, 142KB)