In the wake of the affair and the takeover by JC Flowers, Paneurolife has effected something of a metamorphosis

Having risen from its ashes, Paneurolife, the Luxembourg-based insurance company that was set up in 1990 to serve the European insurance market according to the new distribution possibilities opened up by the concept of Freedom to Provide Services, has now decided... to return to its original vocation. This announcement was made by Tom Fraser, the group's new managing director and CEO who arrived in late November with the American shareholder JC Flowers, a private equity fund that took over 100% of the group's capital from Nationwide.

In recent years, the group has operated mainly in the Belgian, British and Scandinavian markets, where through a network of independent intermediaries it distributes open-architecture branch 23 products, structured funds and dedicated funds. It is precisely these markets, which, according to Fraser, are profit-making, and in which the group has just launched a new regular premium product, “Pharos Regular Premium”, that are the group's current priority. In the words of Tom Fraser: “ We see this as an opportunity to increase our network of intermediaries and our range of products. We aim to look into the possibility of developing a branch 21 product ”.

The new boss pointed out that Paneurolife has processing systems that can handle three times the current volume of business. By exploiting the available capacity, Paneurolife aims to develop a European insurance model. “ Expansion will be achieved ”, says Fraser, “ both by organic growth, through the development of markets and products, and through acquisitions and alliances with other groups ”.

After Belgium, the group's geographical expansion will focus on Germany and possibly on the Netherlands. Paneurolife aims to develop the expatriate market in southern Europe. Fraser says in this regard: “ In addition to the presence of retired persons, this is an increasingly interesting market, because the number of sunseekers is rising constantly ”. In the context of this initiative, Paneurolife aims to work with renowned financial planners.

Paneurolife will cater in particular for people who have decided to settle in southern Spain. France, where the group had a brush with the law in 2000, is not a priority (or is no longer a priority). Tom Fraser adds: “ That's all past. Our group's current objectives have totally changed. Our profession is increasingly controlled by a European legal arsenal, especially on measures to combat money-laundering, which didn't exist at the time. We are working hard on compliance issues. Moreover, we are organising an anti-laundering training course approved by the CBFA (Banking, Finance and Insurance Commission) at the request of Belgian brokers ”.

The group will also be focusing more on the Luxembourg market. Fraser explains: “ Given our presence here, it is logical for us to move in this direction ”. The change in the group's policy in Luxembourg will take the form, in the medium term, of a change of logo and, in the shorter term, of a change of address. In March or April of this year, Paneurolife will be moving to Capellen, a new business park near Luxembourg: “ All our staff will be on the same floor. We aim to improve our internal communication ”.

The headcount, which is currently 110, will increase, Fraser says, “ in line with the success achieved in the projects that we aim to develop over the coming 12 months ”. In financial terms, the group's objective is to treble its turnover in five years. According to Tom Fraser, the new shareholder JC Flowers is patient: “ The American investor, which specialises in the acquisition of financial groups, has embarked on a long-term policy ”.

Fraser says that this is demonstrated by the takeover in the year 2000 of the Japanese Long Term Credit Bank (LTCB), which has since change its name to Shinsei Bank, for 1.1 billion dollars. More recently, the group became the first private investor in a German savings bank following the takeover, with five investors, of 24.1% of the capital and 26.6% of the voting rights of HSH Nordbank. The group is also present in the Netherlands (with NIBCapital), in the United Kingdom (with Fox Pitt Kelton) and in the United States (with Ernstar).

Jean-Claude Welshaar, Luxembourg