Recoveries for life insurers

More promotional loans committed


The business development of Landwirtschaftliche Rentenbank, Frankfurt am Main, was characterized by brisk new business and a normalization of the earnings situation in the first half of 2010; in particular, the low-interest program loans again provided strong growth impulses.

Including general promotional loans and securitised financing, total new business in the first half of 2010 rose by almost 28 % year-on-year to 7.8 billion.

The volume of funding on the balance sheet reached 67.4 billion at the end of June, up 2.4% on the end of 2009. Total assets expanded by 8.0 % to 81.9 billion by the end of 2010.

Recoveries for life insurers

A ruling of the Cologne Higher Regional Court of 5 February 2010 (Case No. 20 U 80/08) establishes that life insurers have so far incorrectly implemented the BGH rulings on the minimum surrender value and on the invalidity of the cancellation deduction in their favour.

In an impressive and particularly clear manner, the ruling shows that customers are entitled to billions more in recoveries from contracts concluded from 1995 to mid-200 I and terminated or non-contributory in the meantime or in the future on the basis of the relevant BGH rulings.

The Cologne Higher Regional Court thus confirms the view of consumer protection, lawyers and actuarial experts on the calculation of minimum surrender values and the inadmissibility of lapse deductions, which had previously been disputed by insurers. More than 10 million customers are affected.

by Dr. Johannes Fiala


by courtesy of (published in VDL Journal 06/2010, page 33)

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Dr. Johannes Fiala Dr. Johannes Fiala

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
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