Germania insurance company Allstate Insurance Group has been awarded an $8.2 billion contract by the Federal Government to offer insurance in a range of areas.
In a statement the company said it had been awarded the contract because of its long history of delivering insurance for the German state.
“We believe Allstate’s proven and proven performance as a leading insurer, coupled with its global reach, will benefit the German insurance industry and its citizens,” it said.
The German Insurance Association (VAT) welcomed the announcement, which it described as a “transformative development”.
“Allstate is well positioned for the next stage of its transformation into a leading global insurance provider,” it added.
The company is part of a consortium of insurers that includes Allstate, which is a global insurance group, and German insurer Allianz, which has a stake in Allstate.
Allianz will offer Allstate insurance in the UK, France, Italy and Austria, with the rest of the countries to follow.
The consortium includes major insurance firms such as Munich Reinsurance, Munich Insurance and Zurich Insurance.
Allstate said it was confident that its offer would attract customers to the insurer.
It said it would use its experience in delivering insurance to customers around the world and its global expertise in managing risk to offer the best insurance possible.
While the offer will be available across Germany, it will be made available in a number of other European countries.
According to Allstate the offer would be made in two phases.
The first phase would see it offered in the first two years of the deal.
The second phase would be available in 2019 and 2020.
Germany has a long history as a top insurance market.
It was the first country in the world to have a universal life insurance scheme, which came into effect in the early 1990s.
Insurers are still required to cover the costs of an insured life when the individual dies.
For more on the German health insurance market, read our story about what to expect.