Allianz notes decline in pension outsourcing
GERMANY/CZECH REPUBLIC - The crisis has led German companies to think less about outsourcing their pension arrangements, Gerhard Rupprecht, chairman of Allianz Germany, has claimed.
The German operation of the Allianz Global Investors group reported steady inflow of €26m, almost level with 2007, but noted new contributions in the life insurance business dropped 1.7% to €4.9bn.
"It is particularly noticeable that companies have postponed the outsourcing of their pension liabilities for now, to preserve their liquidity in the current situation," said Rupprecht at a presentation of the Allianz results.
He added these losses were counterbalanced by an increasing interest from private clients in supplementary insurance-based pension products.
Furthermore, Allianz said it sees a return to the use of classic life insurance products as long-term pension provision.
Elsewhere, Allianz's Czech operations reported it has seen a rise in profit by 9.4% to CZK220m (€8.2m) and in assets by 11% to CZK6.7bn.
According to figures published by the Czech pension fund association APF, Allianz was among the best performing pension funds in 2008. (See earlier IPE story: Czech funds meet need for positive return)
But in a statement, the group's Czech Republic division also reiterated there was "a need for a new system of retirement provision" and warned the current system needs to be reformed.
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