Watchdog expects more German insurers to tap rescue
FRANKFURT, Nov 19 (Reuters) - Germany's financial watchdog expects more of the country's insurers to tap Berlin's 500 billion euro ($631 billion) financial industry rescue fund, a top official at Bafin said on Wednesday. Thomas Steffen, in charge of insurance supervision at Bafin, said a very small property/casualty insurer had applied to use the fund, although he was unsure whether it had been successful.
"I wouldn't be surprised if there were yet some applications to Soffin," Steffen told journalists, referring to the agency that coordinates the rescue.
Reuters reported last week that a small insurer, along with around a dozen other banks and financial companies, was seeking assistance from the government. Germany's second-biggest bank, Commerzbank (CBKG.DE) has already turned to the emergency fund for help.
Steffen said insurers were more likely to ask for support, not because they faced insolvency, but rather to strengthen themselves against rivals.
There were indications this week that financial institutions may be shopping around for deals from the state rescue packages on offer.
Dutch National Bank Director for Supervisory Policy Klaas Knot said he expected insurer Aegon (AEGN.AS)(AEG.N) would use funds it hopes to get under the U.S. Troubled Asset Relief Program to redeem part of a capital injection agreed with the Dutch government. [ID:nLI265171]
"If the United States has more leeway in granting capital support at more favourable terms (than we do), then who am I to tell Aegon not to use it," Knot said.
