Euro Bonds held by insurers – period of tolerance expires end of 2013

The suspended quality criteria for the classification of bonds and loans of member states of the EU, their regional governments and local authorities are to be resumed from the beginning of year 2014 onwards according to the regular requirements outlined in BaFin’s circular 4/2011 (VA) [1].

Therefore such instruments may continue to be allocated to the restricted assets as part of a 5% high yield quota, as long as they are rated at least B-/B3. Instruments in default always require sufficient guaranty of a third party (i.e. European Stability Mechanism).

A continuous verification of the asset’s quality in the frame of an internal risk management and control is furthermore required.

Further details can be obtained on request.


[1] R 4/2011 B.3.1.c.

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