Stockholm (HedgeNordic) – Brummer & Partners has entered into long-term cooperation with Swedish life insurance company SPP to streamline the production and distribution of Brummer’s insurance products. The collaboration generates economies of scale that are shared with Brummer’s customers in the form of reduced insurance fees.
In addition to operating the largest hedge fund business in the Nordics, Brummer & Partners has also been offering life insurance since 2005 through its insurance branch, Brummer Life. Since 2005, employers, individuals and insurance intermediaries have been able to access the hedge fund group’s underlying hedge funds and a wide range of index and fixed-income funds through occupational pensions and other types of insurance plans. Brummer & Partners has been challenging the Swedish insurance industry with its transparent fee structure, as well as the opportunity for insurance savers to change chosen funds in their pension schemes completely free of charge.
“Free-floating rights and the combination of actively-managed funds with selected index and fixed-income funds have been vital to us from day one,” comments Svante Elfving, co-owner of Brummer & Partners and the Chairman of Brummer Life Försäkringsaktiebolag. “I am proud of the value we have created so far for close to 9,000 insurance savers and for the increased knowledge we have contributed to occupational pension providers,” he adds. “The collaboration with SPP is positive for all parties and will benefit insurance customers through reduced fees,” he comments on the collaboration announcement.
Ola Paulsson (pictured), the CEO of Brummer & Partners, says that “it is very expensive to run an insurance business as a small challenger.” However, “the cooperation with SPP ensures that our offering to the market is secured in the future,” he adds. “We will continue to challenge the Swedish insurance industry with the same offering alongside lowering both our customers’ and our own costs.”
This collaboration entails Brummer Life Försäkringsaktiebolag transferring its entire insurance portfolio to SPP, which will become the new insurance provider for Brummer’s insurance products. Brummer & Partners will continue to market the insurance offering and safeguard its promise to offer and advocate the right to free flow between funds and transparent cost structure. As a result of the new collaboration, customers will benefit from reduced insurance premiums.
Being one of the Nordic region’s leading insurance solutions groups, SPP has an advantage over peers in terms of both technology and expertise, according to Staffan Hansén, SPP’s CEO. “We have invested heavily and developed a system solution that we want to offer to as many insurance customers as possible,” says Hansén on the collaboration. “The collaboration with Brummer & Partners will be a perfect match, where we combine our respective strengths for the benefit of the customer.”