Signal Iduna and the Signa crisis: Why the insurance company hopes to save its money

Signal Iduna and the Signa crisis: Why the insurance company hopes to save its money

According to a report by www.mopo.de, the Hamburg-based Signal Iduna insurance company is at the top of the creditor list of ÖSI investor René Benko's wavering Signa Group, with almost a billion euros. The company loaned the extremely controversial investor around 912 million euros, which is significantly more than the amount invested by other insurance companies. The insurance company agreed to this because it had worked successfully and trustingly with the Signa Group on real estate and project financing for years. But the restrictive lending of commercial banks and a massive increase in interest rates have caused the Signa Group to falter. In response, insurance companies such as Signal Iduna have made large sums available for construction projects. According to the Signal Iduna spokesman, the investments are mostly loans secured by mortgages in high-quality locations in major German cities. In the event of a Signa bankruptcy and foreclosure of the real estate, Signal Iduna would receive money before other creditors. In addition, the company does not expect any significant loan defaults and considers the risks to be manageable. The insured persons' funds are also not at risk, as the German financial regulator BaFin does not see any fundamental risks for the insurers' Signa commitments.

Given this information, it is expected that the possible bankruptcy of the Signa Group will not have a significant impact on the overall profits of the Signal Iduna Group, despite the large amount invested by Signal Iduna Insurance. According to a company spokesman, the insured people's funds are also not at risk. Nevertheless, the insurance company will follow developments closely and run through possible scenarios in the event of a Signa bankruptcy. It remains to be seen how the situation will develop and whether Signal Iduna will see its money again despite the impending mega-bankruptcy. The insurance industry as a whole has been made aware of such developments and will probably examine more closely in the future which projects it is involved in.

It is important that Signal Iduna insurance keeps an eye on the risk and, if necessary, takes proactive measures to minimize the impact of a possible bankruptcy of the Signa group on their company. However, the exact development is difficult to predict as it depends on numerous factors, in particular the economic situation and the decisions of the Signa Group.

Sources:
According to a report by www.mopo.de