Deutsche Bank to Sell Insurance Subsidiary for 1.09 Billion Euros

Frankfurt, – Deutsche Bank said Wednesday it signed a deal to one of its subsidiaries for 1.09 billion Euros.

The German banking giant is going to sell Abbey Life business to Phoenix Life Holdings Ltd., AP reported today. Deutsche Bank CEO John Cryan said that the bank’s asset management department sold the subsidiary because it wants to focus on its core businesses.

Shares of Deutsche Bank are down 52% this year after reports showed that US authorities are seeking $14 billion to settle legal claims over the bank’s sales of mortgage-backed securities that led to the 2008 financial crisis.

Investors took huge losses on mortgage-backed securities in 2007-2008 when they turned out to be riskier than thought, helping kick off a global financial crisis. U.S. authorities are investigating Deutsche Bank’s role in selling those securities.

The Bank is expected to report this year a pre-tax loss of close to 800 million Euros.

Source: Qatar News Agency