Allianz says business model is interest rate-proof: CEO in paper

Allianz (ALV.DE), Europe’s biggest insurer, is confident its business model can withstand prolonged periods of low interest rates, the company’s chief executive was quoted saying by a German newspaper. “We’ve found a mix where results remain relatively stable, regardless of whether interest rates go up or down,” Michael Diekmann said in an excerpt of an interview with Frankfurter Allgemeine Zeitung to be published on Saturday. Low interest rates in the wake of the financial crisis have slashed the income insurers can earn from their investments in safe assets like government bonds, making the burden of meeting past pledges to policy holders increasingly onerous. Allianz earlier this year launched a new type of life insurance savings policy with more limited guarantees to the holder than traditional savings products.


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