German insurers' life guarantee reserves 'to double' in 2013 as low yields bite

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The reserves German life insurers are required to hold against guaranteed products are set to double in 2013 as a result of the low investment rate environment.

The German Insurance Association (GDV), estimates that the Zinszusatzreserve (ZZR) will rise to approximately €10 billion in 2013, compared with €5 billion this year and €1.5 billion in 2011.

The ZZR was introduced in 2011 as an additional protection for traditional policies that offer high returns to policyholders.

BaFin, the German reg