BaFin orders insurers to disclose bank investments: report

24th October 2011, Comments 0 comments

The German financial watchdog has ordered insurers to disclose the exact amount of their financial investments with banks by next month, the Financial Times Deutschland reported Monday.

Amid concern the current debt crisis could hit the insurance industry, the BaFin has ordered insurers to quantify and specify all forms of capital investment with financial institutions and specify whether they hold covered or uncovered bonds, the newspaper said.

A similar survey was conducted in the spring when BaFin found the ten largest insurers have up to 55 percent of their financial investments with banks, it added.

BaFin was not immediately available to comment on the report, but a spokesman for the finance ministry said the watchdog conducted "regular surveys of the structure of insurers' investments" and it was "normal procedure".

FT Deutschland said companies in the sector were concened BaFin could pressure insurers to scale back their investments with banks so as to reduce the risk of contagion.

© 2011 AFP

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