Germany's largest life insurer, Allianz Leben, will keep its surplus participation rate stable for the third consecutive year in 2026.

The total interest rate for the "Perspektive" policies, which do not offer lifelong interest guarantees, will remain at 3.8 percent, the Allianz subsidiary announced on Monday in Stuttgart. For traditional policies, the rate will stay at 3.5 percent, as in the current year. The ongoing debate about statutory pensions is increasing interest in private retirement savings, said Allianz Leben CEO Ruedi Kubat. "Our consistently high total interest rate is an added incentive for this, which we also see reflected in strong demand."

Allianz Leben manages around 14 million policies, accounting for nearly 28 percent of all life insurance contracts in Germany. Its share in new business is significantly higher.

The total interest rate at Allianz consists of a current interest rate of 2.8 percent (for "Perspektive") and 2.7 percent (for traditional policies), plus a final surplus and participation in valuation reserves. For capital market-linked policies, the rate applies only to the portion of accrued capital invested in the security assets.

Many life insurers, where possible, benchmark themselves against Allianz. However, some competitors have already declared their surplus participation rates for 2026: AXA Leben and its subsidiary DBV will keep their current interest rate steady at 3.0 percent, while Ergo Vorsorge, part of Munich Re, is raising its rate to 2.9 from 2.8 percent. Ergo Leben (formerly Hamburg-Mannheimer), which no longer writes new business, is increasing its rate to 3.0 from 2.7 percent. The Proxalto portfolios managed by run-off specialist Viridium--representing legacy Generali Leben policies--will be credited with 2.7 percent (2025: 2.6 percent), while Entis Leben, also part of Viridium, will pay 3.4 percent (previously 3.35 percent).

(Reporting by Alexander Hübner, edited by Ralf Banser. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)