Pensions - OVB CEO Freis senses good business
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NEEDS ARE CREATING DEMAND
Sales organisations are probably the best yardstick for measuring the current situation on the pensions market. The range of products and services they offer is broad and they are in close proximity to clients. So, it makes you sit up and take notice when Mario Freis, CEO of OVB Holding, with its 4.55 million clients (around 613,000 of which are in Germany), views the European and especially the local pension markets with a good dose of optimism. "We already started gaining momentum in Germany in the second half of 2023 and recorded growth again compared to the same period the previous year," explains Freis in an interview with PLATOW.
The double-digit growth rates in the product areas of private pensions, health and property insurance were however offset by "significant declines in the financing business due to market conditions". The pension business was driven by unit-linked plans, where the share accounted for by new business increased from 30.3 to 31.8%. Other pension products, which include in particular cover for biometric risks, recorded a slight increase, reports Freis.
The manager's optimism has been boosted by the course of the year so far. With a "very satisfactory first quarter, we are well on the way to achieving our 2024 targets and expect the positive trend in sales development to continue." He consequently expects group-wide sales in the range of €360 million to €385 million. Taking into account the expenses for the current "OVB Excellence 2027" strategy, he anticipates operating income to end up at between €17 million and €20 million. So, he sees an increase compared to the 2023 result (€17.8 million) as a definite possibility. Unlike some of the company's competitors, Freis does not want to hide behind the effects of exogenous factors such as client fears about the future or inflation.
"We believe the loss of purchasing power of private households in the eurozone caused by inflation is increasingly likely to be overcome." The savings rates of private households in the eurozone have already risen slightly again, he continues, and international stock markets closed the past year with "some significant gains". Freis knows that there is a need for pension provision because society is ageing, especially in Germany. The "increased demand for advice" also gives OVB's CEO cause for optimism about the future: "In Germany, we are confident that we will again achieve sales growth over the course of the year." mv