The German financial supervisory authority, BaFin, is pushing for insurance companies and occupational pension institutions domiciled in the UK to start phasing-out existing business in Germany following Brexit.
The primary insurance business has to be terminated at the earliest date possible, according to civil law. Occupational pension schemes are not permitted to take on new pension promises for employees, or to accept contributions based on existing agreements from 1 January, and cannot resume taking on contributions if payments have already stopped.
With the end of the Brexit transition period on 31 December 2020, and without a signed comprehensive trade deal including insurance supervisory, insurance companies and occupational pension institutions domiciled in the UK, Northern Ireland or Gibraltar have lost the rights to operate in Germany granted by the European Passport, according to Article 15 paragraph 1 of Directive 2009/138 / EC of the European Parliament and of the Council on insurance and reinsurance activities (Solvency II), BaFin said.
For insurance companies and occupational pension institutions in the UK only rules that apply to third countries in the sections 67-73 of the German Insurance Supervisory Act (VAG) are now valid.
BVK institutions set up real estate company
Five pension institutions part of Munich-based pension fund Bayerische Versorgungskammer (BVK) have formed a company called Quartier FÜRstenried West to run real estate properties located in the district of Fürstenried in Munich.
The pension institutions own a residential complex with 1,500 apartments in the district. They plan to add 650 apartments.
New services will be offered to tenants in the future in parallel to the development of the district and the residential complex.
According to BVK, the new company will streamline the execution of the development plan for the district and the construction works. The real estate company Ackermann will be in charge of managing the properties.
DRV’s carbon neutral plan
The administrator of Germany’s state pension scheme, Deutsche Rentenversicherung (DRV), plans to become carbon neutral by 2030.
DRV has recently outlined a number of goals in its sustainable strategy, according to the German Sustainability Code (DNK).
It has identified eight of the 17 Sustainable Development Goals (SDGs) of the United Nations’ 2030 Agenda, including fighting poverty and inequality, sustainable consumption and production, and climate protection measures, it said.
Further goals included achieving CO2 neutrality by 2030, focusing on motivation and health of its employees, and services for insured and pensioners.
DRV operates with over 24,000 employees in Berlin, Brandenburg an der Havel, Gera, Stralsund and Würzburg, and 22 rehabilitation centres throughout Germany.