DGAP-News

Allianz SE: Solvency II: Clarification on taxation enhances capitalization and funding options

DGAP-News: Allianz SE / Key word(s): Bond Allianz SE: Solvency II: Clarification on taxation enhances capitalization and funding options 08.10.2020 / 18:01 The issuer is solely responsible for the content of this announcement. Non offer - This announcement and the information it contains are not being issued and may not be distributed in the United States of America. This announcement does not constitute an offer of securities for sale in the United States of America or to, or for the account or benefit of, any U.S. person or in any other jurisdiction. The securities referred to in this announcement have not been, and will not be, registered under the U.S. Securities Act of 1933 (as amended), and may not be offered or sold in the United States of America or any other jurisdiction absent registration or an applicable exemption from registration.

 

Today, the German Insurance Association (GDV) circulated a German Federal Ministry of Finance communication clarifying the tax treatment of certain own fund instruments under the Solvency II regime for the insurance industry (so-called "Restricted Tier 1 Instruments"). On the basis of this communication, German insurers will now be able to make use of Restricted Tier 1 Instruments to meet their own funds requirements under the Solvency II regime. In particular, the clarification enables German insurers to issue Restricted Tier 1 instruments in order to increase tier 1 own funds, or to replace grandfathered tier 1 instruments issued under Solvency I. Proceeds from Restricted Tier 1 instruments could also be used for other purposes including, but not limited to a replacement of tier 2 instruments or of senior bonds. Allianz has not yet made a decision regarding the issuance of Restricted Tier 1 instruments or on the use of proceeds of a potential issuance of such instruments. In particular, no decision has been made with respect to a potential call of any of its subordinated bonds, including existing grandfathered tier 1 instruments. Redemptions of grandfathered tier 1 instruments and tier 2 instruments are subject to regulatory approval. However, Allianz will evaluate the Ministry of Finance communication and its options resulting therefrom.