Allianz German unit cuts life insurance interest rate

FRANKFURT Wed Dec 5, 2012 5:29am EST

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FRANKFURT Dec 5 (Reuters) - Allianz's German unit will trim the overall interest rate it will pay to life insurance policy holders next year by 0.3 percentage points to 4.2 percent, as rock-bottom capital market interest rates continue to bite.

Other insurers have also announced rate cuts for next year, reflecting dwindling investment income from government bonds and other investments in the wake of the financial crisis. (Reporting by Jonathan Gould)