German flag carrier Deutsche Lufthansa AG is considering a sale of its group insurer, Delvag Versicherungs-AG, and in-house broker Albatros, according to reports from Bloomberg.
Delvag, domiciled in Germany, dates back to 1924, and while it provides insurance in the commercial market, it also operates as a captive reinsurer for the airline, for group risks including international employee benefits.
It is not clear what a sale of Delvag would mean for its captive business, but the scale of first party risk insured by Delvag could necessitate another captive formation.
The near 100-year history and evolution of Delvag was explained in GCP #58 in 2021.
Delvag is self-managed with around 140 employees in 2021, while Albatros had around 300 employees.
Lufthansa has sold off two non-core businesses already in 2023 as it looks to “streamline operations” according to Bloomberg.
In May the airline announced it was selling the LSG Group to AURELIUS Group, while payment specialist AirPlus is set to be acquired by SEB Kort.