German insurers such as Allianz and Munich Re are investing over 3 billion euros in René Benko's ailing real estate empire - relevance for investors and insured persons.

German insurers such as Allianz and Munich Re are investing over 3 billion euros in René Benko's ailing real estate empire - relevance for investors and insured persons.

According to a report from www.stern.de,

German insurers are heavily involved in René Benko's indebted Signa Group. The damage is said to amount to more than 3 billion euros. Munich Re, Allianz and Signal Iduna are among the insurers that have bought heavily into René Benko's ailing real estate empire. According to inside information, about a third of this exposure is not covered by collateral, which can be extremely painful for some insurers.

Signa Group's total debt is estimated to be high, with further bankruptcies in the coming days. Many insurance companies lent money to Signa because they could not adequately invest in other businesses in a regulated and interest-driven environment. In particular, non-bank financial companies have lent significant sums to the Signa Group. Signal Iduna alone has lent almost a billion euros.

Overall, various large German insurers have invested in the Signa Group, including Munich Re, Ergo, R+V, Allianz, Volkswohl Bund and LVM. The danger is that a significant portion of the debt is unsecured and existing collateral could prove insufficient. The German financial supervisory authority Bafin is keeping an eye on the situation, but does not expect any significant threat to the affected insurers.

All in all, it can be assumed that the financial situation of the insurance companies that have invested in the Signa Group could be adversely affected. It remains to be seen how the situation will develop and what specific effects this will have on the insurance market and the companies involved. There is a possibility that some insurers could suffer financial losses if Signa's situation deteriorates further.