Corporate | 17 April 2014 08:59
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Hypoport AG / Key word(s): Quarter Results
Press release Volume of Private Clients transactions in the first quarter of 2014 Dr. Klein generates strong growth in its volume of loan transactions at the beginning of the year Lübeck, 17 April 2014: The Private Clients division of Hypoport AG increased its volume of loan transactions by 25 per cent in the first three months of 2014. By contrast, the volume of transactions in its insurance business contracted by 6 per cent in the first quarter of this year. The insurance portfolio managed by Dr. Klein delivered a better performance, growing by 7 per cent over the same period. Business in insurance remains challenging, with providers across the sector currently having to deal with regulatory adjustments and the low rates of return on pension products. The transaction-related figures reported by Dr. Klein remained largely encouraging in the first quarter of 2014. The volume of loan transactions generated was especially impressive, growing by 25 per cent compared with the corresponding period of last year to EUR1.5 billion (Q1 2013: EUR1.2 billion). The continued availability of attractive borrowing terms fuelled further high demand for mortgage finance at the beginning of 2014. Dr. Klein & Co. AG used its extensive branch network to provide many customers with appropriate loan products as part of its localised service. By contrast, the volume of insurance transactions that it generated shrank by 6 per cent year on year to EUR4.4 million (Q1 2013: EUR4.7 million). Whereas new general insurance business performed well, there was a decline in transaction volumes in health insurance and in the Life Insurance & Investments division. Dr. Klein continued to expand its one-stop customer service, increasing the insurance portfolio under its management by 7 per cent on the previous quarter to EUR108.3 million (Q4 2013: EUR101.1 million). The CEO places the transaction-related figures in context Stephan Gawarecki, the chief executive officer (CEO) of Dr. Klein & Co. AG, sees the growth in transaction volumes as being closely linked to the historically low level of interest rates. “Having risen – with only slight fluctuations – from May to September of 2013, borrowing rates edged down during the last few weeks of the year and continued on this lower trajectory at the beginning of 2014. In mid-March the best interest rates available on ten-year mortgage loans fell below 2.0 per cent, undercutting the low for 2013. Whereas, according to Bundesbank statistics, growth in mortgage finance remained more or less flat at the beginning of this year, Dr. Klein managed to expand its transaction volumes. Its independent business model, which is rooted in close collaboration with virtually all major finance providers, enabled Dr. Klein to outperform the market average.” The transformation of the insurance industry will continue in 2014 and subsequent years. “Implementation of Solvency II is due to start by the beginning of 2016. Consequently, one of the challenges facing insurance companies is the need to modify the capital adequacy requirements applicable to their investments,” explained Stephan Gawarecki. “What’s more, life insurance and other pension products are suffering from low investment returns. Dr. Klein is therefore focusing its main efforts on expanding the insurance portfolio under its management in order to enhance the future potential and resilience of its operations in the face of fluctuating levels of new insurance business.” Neither the revenue nor the earnings generated by Hypoport can be directly extrapolated from the transaction figures given above.
Information on Dr. Klein
Contact: Michaela Reimann Head of Communications Hypoport AG Klosterstraße 71 10179 Berlin Mobile: +49 (0) 151 / 58 04 – 1936 Phone.: +49 (0) 30 / 4 20 86 – 1936 E-mail: michaela.reimann@hypoport.de Internet: www.hypoport.de Twitter: http://twitter.com/Hypoport End of Corporate News 17.04.2014 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | Hypoport AG | |
| Klosterstraße 71 | ||
| 10179 Berlin | ||
| Germany | ||
| Phone: | +49/30 42086-0 | |
| Fax: | +49/30 42086-1999 | |
| E-mail: | ir@hypoport.de | |
| Internet: | www.hypoport.de | |
| ISIN: | DE0005493365 | |
| WKN: | 549336 | |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Stuttgart | |
| End of News | DGAP News-Service |
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