On 1 October 2003 Protektor Lebensversicherungs-AG took over the portfolio of Mannheimer Lebensversicherung AG in accordance with the
statutes as a non-compulsory rescue company of German life insurers (economic transfer). Based on the formal obligation issued of German life insurers the investment portfolio has been recapitalized (
annual reports). Since then, the contracts have been carried on by Protektor Lebensversicherungs-AG.
At the end of 2006 the formal obligation was renewed on account of the establishment of the statutory Guarantee Fund and was not only issued by the shareholders of Protektor but also by all other members of the Guarantee Fund. It provides additional protection for life insurance contracts in case that the funds of the statutory Guarantee Fund are insufficient for the reorganization of future portfolio transfers.
No changes for clients
Generally, nothing has changed for the policyholders of Mannheimer Lebensversicherung AG after the transfer of their contracts to Protektor. The retirement benefits and term coverage are guaranteed to their full extent, as well as the bonus shares already allocated. Agreements on optional contract clauses, e.g. relating to index-linking and contract adjustments, remain uneffected. Even the contact persons will often be the same.
Assumption of all benefits and commitments
Protektor promises to meet all commitments from the insurance contracts in portfolio taken over in 2003. Benefits granted to date continue to be paid and commitments from the contracts are guaranteed. All contract options of policyholders are maintained. From 2007, when sufficient reserves will have been built up, endowment insurances also will receive bonus shares with the aim being a total yield of 3.5%. Term life and occupational disability insurance generally have remained entitled to bonus sharing.