FRANKFURT, Dec 6 (Reuters) - German insurer Allianz
ALVG.DE
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) ((Tina.Bellon@thomsonreuters.com; +49 69 7561 270; Reuters Messaging: tina.bellon.thomsonreuters@reuters.net; Twitter @TinaBellon))
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) ((Tina.Bellon@thomsonreuters.com; +49 69 7561 270; Reuters Messaging: tina.bellon.thomsonreuters@reuters.net; Twitter @TinaBellon))
