The WGF AG mortgage bond is premium reserve compatible (DE)

Found suitable for insurance companies and pension funds by one of the four largest globally active accounting firms. First addressees use the WGF 6.35% mortgage bond to maximize the yield of their premium reserve.

In a survey carried out by one of the four largest globally active accounting firms, the mortgage bond of WGF Westfälische Grundbesitz und Finanzverwaltung AG is classified as an investment tool which insurance companies and pension funds can include in their premium reserve. Some investors are already using the mortgage bond with a fixed annual interest of 6.35 % in their premium reserve.

Prof. Dr. Hans-Peter Schwintowski, Chairman of the Academic Advisory Board for the German Association of the Insured (Wissenschaftlichen Beirat beim Bund der Versicherten) said: "The mortgage bond meets the requirement of § 54 of the German Insurance Supervision Act (Versicherungsaufsichtsgesetz, VAG). This article states that the underlying investment product must guarantee a high level of security and profitability and in addition needs to be adequately diversified and spread."

Mr Schwintowski explained further: "In the past, many contracts from life insurance providers one-third promised very high guaranteed yields of 4%, an obligation which they now have to meet. Even the interest coupons of bonds issued by public issuers now usually lie below those guaranteed yields promised by life insurance providers. Nonetheless, insurance providers have to fulfil their promises. Therefore, one should welcome the mortgage bond with its comparably high annual yield of 6.35% as an alternative investment form in the current low yield period."


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