FRANKFURT Dec 6 German insurer Allianz
lowered the 2017 yields on its life insurance savings
policies on Tuesday, cutting the return on its traditional
product to 3.4 percent from 3.7 percent.
Many life insurers are struggling to meet guaranteed
long-term returns as high as 4 percent as pressure from
rock-bottom interest rates cuts investment income required to
meet the payout commitments.
The insurer also cut the return on its new, top-selling life
insurance product "Perspektive", of which it sold 100,000 in the
first three quarters of 2016, to 3.7 percent from 4.0 percent.
Allianz said in a statement that its life insurance products
still presented savers with an attractive alternative to other
savings products, such as savings accounts, and added it
expected demand to continue growing.
Bonus rates for Allianz's traditional product "Klassik" were
reduced to 2.8 percent from 3.1 percent this year.
(Reporting by Tina Bellon; Editing by Victoria Bryan)