Deutsche Bank and Swiss Re are to pump a combined Ђ180m (US$198m) of fresh funds into Gerling, the embattled insurance group, in a deal that will leave them owning more than 90 per cent of the group's attractive credit insurance unit. At the same time, Deutsche Bank will give back its one-third stake in the Gerling group for free, leaving control of the group with Rolf Gerling, whose grandfather founded the business. Deutsche last week wrote down the value of its Gerling stake from Ђ500m to nothing in preparation for the deal.
An announcement about the operation could come as soon as today, although industry members said continued tweaking of the fine print could push back official confirmation until after tomorrow's May Day bank holiday.
