Allianz reduces payouts for life insurance products

Credit: REUTERS/CHARLES PLATIAU

Allianz is lowering the payouts on life insurance policies, paying tribute to low and negative central bank interest rates, the German insurer said on Monday.

FRANKFURT, Dec 2 (Reuters) - Allianz ALVG.DE is lowering the payouts on life insurance policies, paying tribute to low and negative central bank interest rates, the German insurer said on Monday.

Customers with classic life insurance policies will receive 3.1% interest payments in 2020, compared with 3.4% in 2019, while customers of its Perspektive products with limited guarantees will get 3.4%, also 0.3 percentage points lower.

In its new business, 90% of contracts are Perspektive products, which were introduced a few years ago, while the bulk of existing clients still have classic contracts.

Allianz had kept the payouts stable for three years, while most competitors continually lowered payouts as the industry struggled to make returns on investments as interest rates have decreased.

Allianz said it is pouring more money into alternative investments such as commercial property and infrastructure to boost its returns.

(Reporting by Arno Schuetze; editing by Thomas Seythal)

((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters Messaging: arno.schuetze.reuters.com@reuters.net))

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