Zurich - Swiss Life, the largest insurance company in Switzerland, announced Tuesday it was forming a strategic partnership with German insurer Talanx.

Talanx was to purchase up to a 9.9 per cent stake in Swiss Life and a 8.4 per cent share in MLP, a German pension specialist, from Swiss Life.

The news came as Swiss Life announced a 345 million Swiss franc (306.9 million dollars) net profit for 2008 and said it had a solid capital base.

Carsten Maschmeyer, the founder of AWD and a large shareholder in Swiss Life was being nominated to the board, the company said in a statement.

AWD, a German financial services firm, would also distribute joint products of Swiss Life and Talanx under the deal.

Swiss Life has been trying to get rid of its stake in MLP, as the German pension firm has been halting cooperation with the larger company, concerned that it might lose its independence.

Swiss Life held about a quarter of MLP and said it is still seeking to reduce its stake to less than 10 per cent.

Earlier this month Swiss Life had confirmed it was in talks with Talanx over the MLP stake.

Talanx, the third largest insurer in Germany, already owns 2.9 per cent of Swiss Life and has a 1.5 share in MLP.

The insurance industry has been hit hard by the financial crisis. (dpa)