Gerling is one of Germany's biggest insurers and has branches in more than 20 countries. The five-year contract is worth 300 million euros. As part of the agreement, Siemens has acquired the IT subsidiary "Gerling Gesellschaft für Informationsmanagagement und Organsiation mbH" including 280 employees. Gerling wants to reduce its costs and focus on its core business.

Siemens will take over, run and maintain Gerling's entire IT infrastructure including, among other things, data centers with IBM and Siemens mainframes using Unix and Windows applications, PCs, laptops, telephones and networks. The Cologne based IT-subsidiary taken over by Gerling will be renamed SBI-IS Insurance Services GmbH.

This is the first major order for Siemens Business Services in the German insurance market, considered to have been comparatively reluctant to date where IT outsourcing is concerned. Adrian v. Hammerstein, Group President of Siemens Business Services: "There is growing cost pressure in the insurance business and the outsourcing partnership with Gerling could signal a change for the industry as a whole."

"We have chosen Siemens Business Services because of its sound expertise and capability and its clear commitment to innovation," stated Norbert Heinen, Member of the Board of Gerling-Holding and Chief Information Officer.