Payout block

Unless otherwise defined, a prohibition on insurance companies distributing profits to their shareholders. Such a ban was envisaged in order to strengthen the industry’s risk-bearing capacity in the face of an environment of low interest rates and the associated disadvantages for the insurance industry. – Such a measure would lead to investments in insurance company securities becoming unfavorable compared to other investments. What insurers would gain in advantage because of the distribution freeze would be bought by the disadvantage of making it significantly more expensive for companies in this industry to raise capital. – See diet yield, expropriation, cold, negative interest rate, zero interest rate, quantitative easing, yield chasing, repression, financial, interest rate, kept low, interest rate allocation function, interest rate incentive, interest rate reduction policy. – Cf. Deutsche Bundesbank Monthly Report of July 2014, p. 79 f. (advantages and disadvantages of a distribution freeze).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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