UPDATE 1-German insurers see stable premiums in 2009 -body

* German insurance industry assn sees premium growth slowing

* Sees 2008 premium revenue at 165.3 million euros

* Sees 2008 German motor premiums down 1.7 percent

* Sees further slight decline in motor in 2009

(Adds detail, background)

FRANKFURT, Nov 12 (Reuters) - Germany's insurance industry is likely to see premium revenue remain flat in 2009 after a 1.5 percent overall gain to 165.3 billion euros ($209 billion) this year, insurance industry association GDV said on Wednesday.

"In the context of a difficult environment in the broader economy, the insurance industry still looks robust," GDV said in a statement at its annual news conference.

Life insurance premiums are expected to fall by 1.5 percent next year, while a 3 percent rise in premiums for private health insurance was seen as "realistic", GDV said.

Premiums in the property and casualty insurance segment are expected to remain stable next year, after an expected rise of just 0.2 percent to 54.6 billion euros in 2008.

"The recent dramatic worsening of the financial crisis has had no effect on the development of premiums," GDV said, adding, however, that the industry had also seen little gain from the preceding economic upswing.

The GDV data showed that Germany's huge market for motor insurance continued to be under pressure this year, as major insurers battle to hold market share by cutting prices.

Motor premiums were expected to fall by 1.7 percent in 2008 to 20.4 billion euros, as a multi-year war of attrition continues.

"We also expect a slight abrasion next year," GDV said.

Besides being big business in itself, car insurance in Germany is seen as a way for insurers to get a foot in the door of consumers, in the hope of selling other types of insurance later.

The battle pits stock exchange listed insurers such as market leader Allianz (ALVG.DE), AMB Generali AMBG.DE (GASI.MI) and AXA (AXAF.PA) against not-for-profit mutual insurers like HUK Coburg, the No. 2 motor insurance player.

Investment income at insurance companies worldwide has been hit by the financial crisis [LC422445], which many industry players predict will force them to start raising prices for insurance cover.

The world's biggest insurance broker, Marsh (MMC.N) told Reuters last month that the long-declining motor and industrial insurance segments in Germany may start to see slight price increases over the course of 2009. [ID:nLR499017]

GDV said on Wednesday that Germany's financial watchdog BaFin saw no threat to the country's insurers as a result of the financial market crisis.

(Additional reporting by Matthias Sobolewski in Berlin; Editing by Mike Nesbit)