Current developments in credit portfolio transactions of insurance companies
8 November 2012
Mayer Brown Legal Update
German insurance companies are playing a larger role as purchasers in the credit portfolio transactions market than they used to. There are both legal and economic reasons behind their insurance companies’ entrance into this market as both purchasers and sellers. Some insurance companies want to redesign their current risk and capital resource profile, while others want to purchase already extended real estate loans with higher interest rate accruals to be able to guarantee the current assumed rate of interest for life insurance. This market will be further strengthened by the recently published Government draft (as defined hereinafter). In this Legal Update, we will discuss some current developments in credit portfolio transactions of insurance companies.