Cash.life AG

Cash.life AG was a German financial services company founded in 1999. It is widely credited as the first company in Germany to offer consumers the option to sell their life and annuity insurance policies instead of cancelling them. The company would purchase policies from holders at a price above the surrender value, then bundle and resell them to investors such as funds, while often continuing to administer the policies until maturity. From its founding until 2008, Cash.life placed policies worth over two billion euros on the secondary market. The company was headquartered in Frankfurt am Main according to its official website, though Wikipedia lists Berlin as its seat. It was publicly listed, with 8,579,900 ordinary shares (WKN 500910, ISIN DE0005009104) formerly traded on the regulated market and later on the open market (Freiverkehr). The majority shareholder, holding over 75%, was Augur Financial Holding Vier GmbH & Co. KG of Frankfurt. In 2013, a tax assessment from the financial administration exceeding 239 million euros led to the company's overindebtedness. As of 31 December 2013, the balance sheet showed a deficit not covered by equity of 219 million euros. The company contested the tax assessment in court. After the Munich Fiscal Court initially dismissed the claim, the Federal Fiscal Court (Bundesfinanzhof) ruled in its favour in September 2019, allowing the provision to be reversed and resulting in a one-time pre-tax income of 280 million euros in the 2019 balance sheet. Despite this legal victory, the company has since ceased operations. Its official website states that Cash.life AG has discontinued its operative business and thanks partners for past cooperation. The brand thus represents a defunct financial enterprise that played a pioneering role in the German life insurance secondary market.

Cash.life AG was founded in 1999 and is recognised as the first company in Germany to enable consumers to sell their life and annuity insurance policies instead of cancelling them. The business model involved purchasing policies from holders at a price above the surrender value, then bundling and reselling them to investors such as funds, while often continuing to administer the policies until maturity. From its founding until 2008, the company placed policies worth over two billion euros on the secondary market. The company was publicly listed, with 8,579,900 ordinary shares (WKN 500910, ISIN DE0005009104) formerly traded on the regulated market and later on the open market (Freiverkehr). The majority shareholder, holding over 75%, was Augur Financial Holding Vier GmbH & Co. KG of Frankfurt. In 2013, a tax assessment from the financial administration exceeding 239 million euros led to the company's overindebtedness. As of 31 December 2013, the balance sheet showed a deficit not covered by equity of 219 million euros. The company contested the tax assessment in court, arguing that no obligation to file for insolvency existed because of a subordination agreement with the financial administration and the suspension of the assessment's enforcement pending judicial clarification. After the Munich Fiscal Court initially dismissed the claim, the Federal Fiscal Court (Bundesfinanzhof) ruled in its favour in September 2019. This allowed the provision to be reversed, resulting in a one-time pre-tax income of 280 million euros in the 2019 balance sheet. Despite this legal success, the company has since ceased operations. Its official website states that Cash.life AG has discontinued its operative business and thanks partners for past cooperation. The brand thus represents a defunct financial enterprise that played a pioneering role in the German life insurance secondary market.

• 2019

  Federal Fiscal Court ruled in favour of Cash.life in September, allowing reversal of provision and resulting in one-time pre-tax income of 280 million euros.

• 2013

  A tax assessment exceeding 239 million euros led to overindebtedness; balance sheet showed a deficit not covered by equity of 219 million euros as of 31 December 2013.

• 2008

  By this year, Cash.life had placed policies worth over two billion euros on the secondary market since its founding.

• 1999

  Company founded; first in Germany to enable consumers to sell life and annuity insurance policies instead of cancelling them.

Pioneer in the German secondary market for life insurance policies, offering policyholders a higher payout than surrender value.

• Life insurance policy purchase

  Purchase of life and annuity insurance policies from holders at a price above surrender value.

• Policy loans

  Option for customers to borrow against their life insurance policy.

• Bundled policy sales to investors

  Resale of bundled policies to investors such as funds, with continued administration by Cash.life.

1. 1cash.life AG official websitecashlife.de
2. 2Cash.life AG on Wikidatawikidata.org
3. 3Cash.life on German Wikipediade.wikipedia.org