Rabobank Group
The Robeco
Group
wmz
Extending Interpolis Re
Same goals
When it comes to Robeco, cooperation
is not an issue, but a fact of life. The
relationship between the asset
manager and Rabobank began with
shared knowledge - the creation of
IRIS, the joint research institution
which provides investment analysis to
local bank dients.That was in the early
1990s. Now, the synergies go much
further, as the recent announcement of
a combined international private
banking and trust operation makes
dear. Robeco's chief finance officer
Gery Daeninck elaborates.
Wall Street Journal
Prudent approach
Combined efforts
IO What'sNewS Issue5-Mayl999
Rutger Groot outlines common goals
although Rl is not focused on Portugal, we
are present and are continually building up
our own Portuguese contacts. That means
we're in a position to offer potential busi
ness advice to Rl.' While Groot admits
contact bas so far been incidental, it has
been very mtich a two-way street. 'Histori-
cally, our contact for the Portuguese
market has been with the Rl Madrid
branch. For investment advice, we also
partly rely on Rl in London.'
In spite of tltis European activity,
Interpolis' primary focus remains donies-
tic, that is with the exception of its
subsidiary Interpolis Re which is precisely
on the same track as Rl. Interpolis Re is
best described as a 'content organizer'
and attempts to bridge the gap between
banking and insurance products. It also
has an F&A and health care focus, not
least because its target market is both the
Rabobank organization itself and RI's
bigger customers in the Netherlands, the
US, the UK and Europe. Although there
are many success stories involving
Interpolis Re and Rl, the synergy appears
to work particularly well herween
Dublin, I.ondon and New York. Says
Interpolis Re's managing director Toon
Bullens: 'In Ireland, for exantple, DLL,
Interpolis and Rabobank are together
creating a pool of creativity in an
environment where new ideas and
structures are formulated continually.'
Front RI's perspective, New York's
managing director Hnancial institutions,
Michel de Konkoly Thege, gives a specifïc
example of teamwork: 'We put together a
transaction for a large US life insurer with
the Interpolis team in Dublin,' he says.
'Between us, we found the right
combination in the reinsurance
possibilities offered by Interpolis and
Rabobank's liquidity strength to bear
credit risk. As a result, the cliënt could
tone down the effects of a derivative
transaction in its P/L. It is highly unlikely
that either Interpolis or Rl could have
pulled off this transaction alone. By
looking at the problem together, we were
able to offer an innovative solution.' Sarah
Mason, London's director of securitiza-
tion, agrees: 'The cooperation between Rl
and Interpolis Re is largely defined by
partnership, by the feeling that we share
the same goals. We both stand for offering
creative solutions in risk financing. And
that is more than just insurance.'
The big news is, of course, the
combination of Robeco's Luxembourg
and Swiss activities with those of
Rabobank's worldwide 1PB and trust to
form the Rabo Robeco Bank (see page 1).
It has taken some time since the actual
acquisition of a 50 percent stake in
Robeco by Rabobank in early 1997 to
come to this cooperation - a major step
forward in what was already a very close
synergy. In the early 1990s, Robeco was
looking for a distribution channel,
Rabobank was looking for an expanded
product range. The two found each other
and continue to build on the win-win
situation which underpins cooperation.
'The starting point of our cooperation
with the local banks remains the mainstay
of our synergy,' says Daeninck. 'At that
level, the cooperation is getting stronger
every day. Over time, we have become
more dependent on Rabobank for our
distribution, in a mutually beneficial
situation.' Robeco also sees more possi
bilities for cooperation having little to do
with the retail distribution side of the
relationship. 'How many do you want?'
Daeninck asks seriously. He is able to list
quite a few opportunities off the top of his
head. 'In terms of specific synergies on the
wholesale side, one of our transactions for
the Central Bank of Brazil recently made
the Wall Street Journal, a direct result of a
Rabobank introduction.'
He also sees large corporates as another
area where Rl and Robeco could add
value. 'With increased M&A activity,
numerous corporates require short-term
management of assets. This new business
for us certainly has potential,' he says.
'Third-party distribution of retail products
is another opportunity we discussed
recently. The same applies to securities
lending which could be a joint effort.
Gery Daeninck on combining resources
Currently, this is in its infancy with an
agreement covering Southeast Asia. It is
sontething that might be developed and
later extended westwards, ntaybe to the
US, with a 24-hour lending capability.'
Although the creation of the new bank is
drawing much of the attention at present,
there are many ways Robeco and Rl can
draw on each others' expertise. Just as
IRIS created a cost-effective source of top
quality research and analysis, other
combined efforts could prove equally
efficiënt. Presently, Daeninck explains,
