KPMG Law advises Deutsche Telekom on BaFin authorization for reinsurance captive

Deutsche Telekom AG has received permission from BaFin to establish a reinsurance captive based in Germany. The license was granted at the end of March 2026, faster than originally planned. This is one of the few new foundations of an insurance captive in Germany in recent decades. Telekom was advised by KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) and KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law).

KPMG supported Telekom as a management consultant from the validation of the first business case to the decision to found the company and the granting of the reinsurance license by BaFin. In particular, KPMG contributed its expertise in actuarial services, corporate finance, corporate insurance management, risk management for insurance companies and tax consulting.

KPMG Law provided legal advice on the formation of the company, including regulatory and corporate law structuring as well as legal support and coordination of the licensing procedure with BaFin.

Telekom Captive’s location decision in favour of Germany was also based on the fact that the period until the license is granted is comparable with traditional captive locations. Differences between the supervisory regimes of other locations have largely been leveled out by the introduction of Solvency II; BaFin’s decision is seen as a strengthening of Germany as a captive location.

Deutsche Telekom aims to perform as many captive-related tasks as possible internally, but has outsourced specific activities relating to the operation of the captive to KPMG – including the compliance function. The captive is to be used to cover the high deductibles that traditional industrial insurers demand from Telekom. The structure also enables Telekom to develop its own insurance concepts and participate in positive claims experience.

The captive is scheduled to join the property insurance program from 1 May 2026 and the liability program from 1 January 2027.

Consultant Deutsche Telekom AG

KPMG

Frank Schönfelder (Engagement Leader), Marlene Sydow (Project Management and Actuarial Services), Alexander Thometzek (Director Corporate Finance), Tim Zimmermann (Manager Corporate Finance), Dr. Sandra Grote (Partner Tax Consulting), Lisa Wagner (Manager Tax Consulting), Frank Pallentien (Manager specialized in Corporate Insurance Management)

KPMG Law

Dr. Frank Püttgen (Partner, Insurance Law, lead legal advice and legal BaFin coordination), Dr. Nikolaus Manthey (Partner, Corporate Law), Torge Albrecht (Senior Manager, Corporate Law), Christoph Stommel (Manager), Sabina Berhanu (Senior Associate), Andrea Honigmann (Senior Associate) (all Insurance Regulatory Law, Reinsurance Law, Cologne).