Swiss Life and AWD join forces to accelerate international growth

Swiss Life and AWD join forces to accelerate international growth

Swiss Life, a leading European provider of life insurance and pension products, with headquarters in Zurich, and the Hanover-based company AWD, Europe's leading independent financial advisor, plan to form a strategic partnership to boost their international growth strategies. Swiss Life will make a voluntary public takeover bid at EUR 30 per share to the shareholders of AWD Holding Ltd. in January 2008. Swiss Life will become one of AWD's key product partners; AWD will retain its independent financial advisory services business model and its open product platform.

Rolf Dörig, Swiss Life's Group CEO, comments: "Swiss Life and AWD complement one another ideally. The strategic partnership with AWD enables us to access the growth markets in Central and Eastern Europe, as well as the Austrian market. At the same time, we can expand our market penetration in Germany and strenghten our leading position in Switzerland. By joining forces, both AWD and Swiss Life are well placed for accelerated growth in the years ahead."

Carsten Maschmeyer, Chairman of the Board of Management of the AWD Group, states: "In Swiss Life we have a strong partner who will support us in attaining our ambitious growth targets, also beyond Germany. Swiss Life is renowned for reliability and quality. We have a strong distribution network and a unique advisory services approach. Together, we will be even stronger, even more international and even better equipped to develop new markets. In the new ownership structure we will retain our proven advisory services concept based on the private finance strategy, and continue to offer our clients a broad range of best-in-class products."

Offer at 36% premium to average price over three months

Swiss Life wishes to become AWD's majority shareholder and will submit a voluntary takeover bid at EUR 30 per AWD share. This corresponds to a company valuation of approximately EUR 1.16 billion in total (approx. CHF 1.9 billion) and a premium of around 36% of the weighted average share price of EUR 22.06 in the last three months.

(Excerpt press announcement 3 December 2007)

Swiss Life was advised on this transaction by Credit Suisse and Gut Corporate Finance.