The cash-based takeover cements a global marketing agreement the two companies have had since earlier this year.
Munich will keep Allfinanz operating as a separate brand and company within the group structure.
Allfinanz employs 58 people in offices in Dublin and Sydney. The company provides web-based business processing and underwriting automation software for the life insurance industry — its clients including the likes of HSBC Bank, Standard Life and Prudential.
According to chief executive David Wall this acquisition is an endorsement of Allfinanz’s success since its formation 20 years ago.
“We will continue to focus our energies on our core competency of technology delivery, while now being able to leverage the extensive global reach and risk management from Munich Re,” he said.
Munich Re director Dr Wolfgang Strassl added: “The combination of the Allfinanz leading-edge technology with Munich Re’s global reach and superior risk management skills represents a unique opportunity that will add significant value for our clients in the life insurance sector. Munich Re will participate in the growing profitability of Allfinanz and will also benefit directly through improved quality of its reinsurance business.”
In its last financial year, Munich Re generated a profit of €3.52 billion — its highest since being founded in 1880.