GSAM INSURANCE ASSET MANAGEMENT


A FRAMEWORK FOR EUROPEAN INSURERS


                     





                        


      


LOW INVESTMENT YIELDS AND THE RISK OF RISING RATES


                  


 


     


Exhibit 1: The impact of low rates on guaranteed minimum returns German bund yields vs. the guarantee levels of new business


0 1 2 3 4 5 6 7 8 9


10y bund yield New business guarantee


 


      


               


               


 


  


            


                    


                 





1993


1995


1997 18 | INTELLIGENT INSURER | Summer 2012


1999


2001


2003


2005


2007


2009


2011


2013


Interest Rate


Source: BaFin, Goldman Sachs. As of March 21, 2012


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