Deutsche Lufthansa AG, the German airline, is looking to sell its insurance brokerage unit Albatros and insurance business Delvag, according to people familiar with the matter.
(Bloomberg) — Deutsche Lufthansa AG, the German airline, is looking to sell its insurance brokerage unit Albatros and insurance business Delvag, according to people familiar with the matter.
The country’s largest carrier is working with advisers to find a buyer for the two units in a push to streamline operations, the people said, asking not to be identified because the discussions are confidential.
Lufthansa has been selling non-core businesses in a bid to raise cash after Covid, as it focuses on consolidating Europe’s aviation market. The company is in the process of selling a minority stake in its maintenance unit and has offloaded the remainder of its catering business to private equity group Aurelius. At the same time, Lufthansa agreed to buy a stake in Italy’s ITA Airways in May.
The sale of Albatros and Delvag would follow that strategic rationale. A representative for Lufthansa declined to comment.
Delvag is Lufthansa’s in-house insurer and offers, for instance, coverage for air cargo, sea freight and transport. Albatros is part of the unit and acts as an insurance broker for airlines that seek coverage for their fleets.
Lufthansa is currently grappling with higher costs in a post-pandemic world, driven by higher air traffic control and airport charges, as well as maintenance expenses. Healthy summer demand has recently helped the firm to triple its adjusted earnings before interest and taxes, and the company expects robust demand for the rest of the year.
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