Business · Companies · 6 hrs ago
Frankfurter Leben faces problems in private credit investments
Frankfurter Leben is facing problems with loans made through two private-market funds run by its investment subsidiary, HAGIM.
Together, the funds hold about 590 million euros in investments.
One fund financed property developers in Germany and Austria; of its original 17 loans, ten were restructured and two were written off.
A second fund, which lends to European mid-sized companies, has seen breaches of loan terms and delayed interest payments, but the insurer says its write-offs there are very small.
Frankfurter Leben says policyholders have not suffered losses and that all payments due are secure.
The difficulties matter because the insurer depends on buying existing insurance portfolios to grow, and Germany’s financial regulator is paying closer attention to insurers’ private-credit risks.
A planned takeover of Athora’s German business still needs regulatory approval, and the parties expect it to close in mid-2027.
Frankfurter Leben has faced problems in two private-credit funds managed by its subsidiary HAGIM, which together have a volume of about €590 million.
In a fund lending to property developers, 10 of 17 loans were restructured and two were written off in full.
A second fund lending to European mid-sized companies faced breaches of loan terms and delayed interest payments.
Frankfurter Leben says the property-loan portfolio still had a positive net return and that policyholders have not incurred losses.
The issues come as the insurer seeks regulatory approval for a deal to take over Athora’s German business.
- Who
- Frankfurter Leben, a life insurer, and its subsidiary HAGIM.
- What
- Two HAGIM private-credit funds have encountered loan problems, including restructurings, write-offs and delayed interest payments.
- When
- The report was published on November 8, 2026; the problems include figures reported through the second quarter of 2026.
- Where
- The property loans were made to developers in Germany and Austria; the other fund lends to mid-sized companies in Europe.
- Why
- The sources describe troubled loans, breaches of credit terms and delayed interest payments; they do not state a single cause for the problems.
Frankfurter Leben
Handelsblatt's reporting
Portfolio performance
Frankfurter Leben
Frankfurter Leben says the property-loan portfolio returned 2.85% annually after costs in the second quarter of 2026.
Handelsblatt's reporting
Handelsblatt reports that 10 of 17 property loans were restructured and two were written off in full.
Policyholder losses
Frankfurter Leben
Frankfurter Leben says policyholders have not incurred losses and all payment obligations are secured.
Handelsblatt's reporting
Handelsblatt reports problems in the insurer’s private-credit investments, while noting that policyholders had not incurred losses so far.
BaFin Executive Director Julia Wiens said the regulator would pay closer attention to life insurers’ private-credit investments.
Frankfurter Leben reported an annual net return after costs of 2.85% for its property-financing portfolio.
Frankfurter Leben announced plans, with financial support from DWS, to take over Athora’s German business.
Handelsblatt published its report on problems in Frankfurter Leben’s private-credit investments.
The parties expect the Athora transaction to close, subject to BaFin approval.
- HAGIM funds
- About €590 million combined volume
- Property-loan fund
- 10 of 17 loans restructured; two written off in full
- Property portfolio return
- 2.85% annual net return after costs in the second quarter of 2026
- Athora transaction
- Planned takeover of the group’s German business, announced in August 2026
- Expected transaction close
- Mid-2027
What people are saying
This does not correspond to the originally intended target return, but against the backdrop of upheaval in the property market it is an excellent result.
All payment obligations are secured at all times and without restriction.