Acquiring IBIS Insurance adds a range of specialist cover to Federale Verzekering’s offering – a move out of the insurer’s own investment playbook.
The two companies already work together on construction risk. The addition of IBIS Insurance’s technical know-how, strong fire insurance portfolio, and specialised B2B solutions fits in Federale Verzekering’s sustainable growth strategy, in which – alongside organic growth – it focuses on the healthy diversification of its activities, broadening both its product range and access to the broker channel.
“Together, we strengthen our offering and create additional growth opportunities, while respecting the unique character and expertise of IBIS Insurance,” explains Federale Verzekering CEO Tom De Troch.
IBIS Insurance underwrites policies covering risks including fire and related risks, machinery breakdown, crop hail damage and fine art, as well as comprehensive cover for trucks, buses and coaches.
That spread fits with Federale Verzekering’s own advice to investors, too. “As always, diversification remains essential,” says portfolio manager Stijn Elebaut in the insurer’s June market review. He recommends spreading investments across asset classes, sectors and regions to manage risk better while taking advantage of opportunities in different markets.
“In an environment of geopolitical uncertainty, inflation risks and rapidly changing market conditions, a well-diversified portfolio is more important than ever.”
IBIS follows two earlier acquisitions, each of which widened Federale Verzekering’s mix of products and channels. In 2018, Federale took a 98.8% stake in Antwerp-based Optimco, which is strong in car insurance. Two years later, it agreed to take over the authorised underwriting activities of Antwerp-based BDM from The Navigators Group (part of the US insurer The Hartford).
The terms of the IBIS deal follow the same template as these previous deals. Following the acquisition, the underwriter will stay operationally independent and keep its own commercial course, with Federale Verzekering as a stable parent company. “Decision-making power remains in Belgium, and we retain the scope to further develop our own approach,” explains IBIS Insurance CEO Thierry Van der Straeten.
Federale Verzekering was advised by Lydian, with a team made up of partner Florence Colpaert and associate Clément Defechereux, supported by the firm’s broader corporate and insurance teams.
Reaching across channels
A week after the IBIS deal, vdk bank chose Federale as the sole partner for its insurance offering, based on strategic fit and technical capabilities. From January 2027, the 100-year-old bank will offer fire, car and family insurance, as well as outstanding-balance insurance for home loans, exclusively from Federale Verzekering. Branch 21 pension and long-term savings products will follow, and the two plan to develop new insurance products together for the Belgian market.
Sustainability will be a key part of this. “At Federale Verzekering, we remain convinced that – despite the economically and geopolitically challenging environment – return and sustainability can go hand in hand,” Stijn mentions in the June report.
Two of Federale’s Branch 21 products, Vita Invest.2 and Vita Flex 21 VAPZ, carry the Towards Sustainability label, while FairFin’s latest BankWijzer ranks vdk bank among Belgium’s most sustainable banks.
According to statements by both companies, the Federale partnership helps bring the bank’s insurance products fully in line with its strategic objectives of proximity and sustainability. Similarly, for Federale, the partnership will raise the standards of its insurance products to match those of its sustainable savings products (starting from 2027). “As Belgian players, we are thus jointly taking responsibility to show the financial world in our country that accessibility, climate and social aspects must take centre stage,” Tom explains.
