EANS-News: Hypoport AG / Dr. Klein & Co. AG: Insurance companies expanding their lending business

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Company Information/lending business

Subtitle: Insurance industry now accounts for almost 50 per cent of
Dr. Klein's commercial real-estate finance – steady rise in number of
insurers in the lending business

Lübeck, (euro adhoc) - 30 June 2011: The German insurance industry
has significantly expanded its role as a lender in the commercial
real-estate finance business. This can be seen in the latest figures
from Dr. Klein & Co. AG's business with corporate clients.

In the first half of 2011, Dr. Klein brokered loans with a total
volume of EUR450 million. Almost half of this amount - EUR220 million
- was accounted for by insurers and pension funds, compared to 25 per
cent in the first half of 2010. In contrast, the proportion accounted
for by the banking sector has declined. It is particularly noticeable
that, for a while now, insurers have no longer only been financing
small residential property deals with a loan-to-value ratio of up to
60 per cent. Finance partners are also being found in the insurance
industry for commercial real estate and large transactions in excess
of EUR50 million. However, the maximum loan-to-value ratio is 80 per
cent; insurers do not provide finance with higher ratios. There are
diverse reasons for this strong expansion of business. Firstly,
investment managers at insurance companies and pension funds are
interested in investments that are low risk and free of exchange-rate
risk - and they have discovered the German real-estate industry.
Secondly, less effort is involved in financing real estate than
purchasing it. "It's not a flash in the pan", says Hans Peter Trampe,
member of the Management Board responsible for this area at Dr. Klein
& Co. AG. "The banking sector will have to adjust to far tougher
competition from the insurance industry, especially in light of Basel
III and Solvency II."

There have also been a number of changes in how financing is handled.
Although insurers still only offer long-term finance, they have made
their other lending and contractual conditions considerably more
flexible and are also catering to customers' individual needs.
Nevertheless, the requirements set by each insurance company vary
significantly. Whereas some insurers prefer to spread risk widely and
will not provide finance of more than EUR5 million, others are
specifically focusing on deals in excess of EUR50 million. The total
number of insurance companies that are becoming lenders is rising all
the time. This can also be seen in the latest figures from Dr. Klein
& Co. AG.

About Dr. Klein & Co. AG Dr. Klein is an independent provider of
financial services for private and institutional clients.

For private clients, Dr. Klein identifies the ideal products to suit
their individual finance-related requirements. Some 550 experts offer
advice focusing on all issues relating to current accounts and call
money, insurance policies and financial investments, or mortgage
financing and private loans. The service is provided over the
internet and in more than 180 branch offices. The company is not
affiliated to any specific providers.

Dr. Klein & Co. AG has been a preferred partner for the provision of
financial services to the residential property industry, municipal
clients and commercial real estate investors since 1954. Dr. Klein
offers its institutional clients comprehensive support, competent
advice and customised concepts for financial and portfolio management
and business-related insurance policies.

Its client-oriented consulting expertise and long years of working
closely with all well-known credit and insurance companies ensure
that Dr. Klein always has the simplest access to the best possible
financial services. Dr. Klein is wholly owned by Hypoport AG, the
internet-based financial services provider that is listed on the
Frankfurt Stock Exchange.

Further inquiry note:
Dr. Klein & Co. AG
Michaela Reimann
Group Communications Manager
Hansestrasse 14
23558 Lübeck
Phone: +49 (0)30 420 861 936
Email: michaela.reimann@drklein.de
www.drklein.de

end of announcement euro adhoc
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company: Hypoport AG
Klosterstraße 71
D-10179 Berlin
phone: +49(0)30 42086-0
FAX: +49(0)30 42086-1999
mail: ir@hypoport.de
WWW: http://www.hypoport.de
sector: Financial & Business Services
ISIN: DE0005493365
indexes: CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt
language: English