DGAP-News

Hypoport AG: Private Clients - value of new loans brokered and insurance portfolio achieve significant double-digit growth

DGAP-News: Hypoport AG / Key word(s): Quarter Results
Hypoport AG: Private Clients - value of new loans brokered and
insurance portfolio achieve significant double-digit growth

19.01.2015 / 08:02

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Press release

Volume of new business with private clients brokered in 2014

Private Clients: value of new loans brokered and insurance portfolio
achieve significant double-digit growth

Lübeck, 19 January 2015: The volume of new loans brokered in Hypoport AG's
Private Clients division under its main brand, Dr. Klein, increased by 16
per cent year on year to EUR6.3 billion in 2014. Despite an impressive
fourth quarter, the volume of new insurance business brokered last year
shrank by a further 8 per cent compared with 2013 in line with the general
market trend, falling to EUR19.9 million. By contrast, the insurance
portfolio managed by Dr. Klein performed well, growing by almost 18 per
cent in 2014 to a new record of EUR118.9 million.

"Demand for residential property remains high on the back of continually
low interest rates. However, increasingly limited supply and rising
real-estate prices are making it more and more difficult to find the right
property. The statistics published by the Bundesbank reveal that the total
volume of mortgage lending across the German market as a whole is
increasing only marginally," explained Stephan Gawarecki, the chief
executive officer of Dr. Klein & Co. AG, adding: "We are therefore
especially delighted to see our significant double-digit growth in this
business."

Mortgage finance - by far the largest product segment - grew by 19 per cent
year on year to EUR5.9 billion. The total value of building finance
business advanced by 36 per cent to EUR209.8 million. On the other hand,
the volume of personal loans brokered fell by 32 per cent to EUR214.7
million. "Competitive pressures in this field have intensified hugely over
the past twelve months," explained Gawarecki. "We have therefore partially
withdrawn from this business to allow ourselves the time and space to
reconfigure our strategic approach."

New insurance business as a whole continued to decline. Whereas health
insurance and general insurance - the two smaller segments - contracted by
40 per cent and 11 per cent to EUR2.3 million and EUR5.4 million
respectively, life insurance actually grew slightly by 3 per cent to
EUR12.2 million. Because the period leading up to the year-end is
traditionally buoyant and the lowering of the guaranteed rate of return
with effect from 1 January 2015 caused some life insurance business to be