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What are valuation reserves (Bewertungsreserven) and are they paid out on German life insurance?

In short

What are valuation reserves (Bewertungsreserven) and are they paid out on German life insurance? They are hidden reserves: the insurer's investments are worth more than their book value. When your contract ends, half of the amount assigned to it is paid out under § 153 VVG. Reserves from bonds only count above a safety buffer for guarantees, so often little is left.

What are valuation reserves (Bewertungsreserven) and are they paid out on German life insurance?

What it costs

Worked examples of the half share rule.

ExampleTypical range
Assigned reserves EUR 4,000, no bufferEUR 2,000 paid out
Assigned EUR 4,000, of which EUR 3,000 from bonds fully used by the bufferEUR 500 paid out
Share of valuation reserves in the maturity payoutusually 0 to 3 percent

As of October 2026.

The half share rule and the buffer are set by law.

Amounts are worked examples; the share of the payout is a guide value from our quoting practice.

Worked example

Endowment policy matures after 25 years

EUR 3,600 of reserves are assigned, EUR 2,400 of them from bonds; the buffer uses half of the bond reserves.

Reserves from shares and propertyEUR 1,200
Bond reserves after bufferEUR 1,200
Half of EUR 2,400EUR 1,200

EUR 1,200 is paid on top of the maturity amount.

Where valuation reserves come from

German life insurers invest mainly in bonds, property and shares. When market value rises above book value, valuation reserves arise. For bonds this happens mostly when interest rates fall, and the reserves shrink again when rates rise.

How much is paid out

The insurer calculates valuation reserves every year and assigns them to contracts. At contract end, half of the amount assigned to your life insurance is paid out. For pension policies the end of the savings phase counts.

Reserves from fixed income investments count only to the extent they exceed a safety buffer for all customers' interest guarantees. When market rates are below the guaranteed rates, the buffer is large and little of the bond reserves is left.

ComponentGuaranteedPaid when
Guaranteed capitalyesat maturity
Allocated bonusesyes once allocatedat maturity or surrender
Terminal bonusnoat maturity, on surrender per policy terms
Valuation reservesnohalf at contract end

On surrender

Surrender also ends the contract, and § 169 (7) VVG refers to the half share rule. Check your annual statement before cancelling: it shows the valuation reserves currently assigned to your policy.

Step by step

  1. Collect your annual statements (Standmitteilung).
  2. Compare the reserves shown over the years.
  3. Check the final statement for a separate item.
  4. Ask in writing for the calculation if it is missing.

Checklist

  • Annual statement shows valuation reserves
  • Final statement lists them separately
  • Explanation of the safety buffer requested
  • Maturity or end of savings phase known

Common mistakes

  • Counting on the figure in the annual statement
  • Confusing reserves with the terminal bonus
  • Cancelling because reserves look high

Questions and answers

Frequently asked

Are valuation reserves guaranteed?

No.

They move with markets and can fall to zero.

Why only half?

That is the rule in § 153 (3) VVG; the other half stays in the pool.

What is the safety buffer?

A cushion so the interest guarantees of all customers can be paid.

It reduces bond reserves that count.

Can the share be excluded?

Only expressly and only together with the entire profit participation.

Sources

NAMMERT insurance broker

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Related questions

Your broker: Norman Nammert, trading as NAMMERT.

Insurance broker licensed under section 34d(1) of the German Trade Regulation Act.

Broker register no. D-C08Q-TOSD4-37.

NAMMERT Assekuradeur GmbH is a separate company.

It does not arrange your contract.

Statutory disclosure (German) · Updated

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