These accounts, guaranteeing high rates for life, are “a nightmare” for the insurer, the daily paper l’Echo reported on Wednesday.
If 100% of Ethia customers accept this offer, it will cost the insurance company 450 million euros. “We have released the necessary cash-flow”, said the CEO Bernard Thiry.
There are aound 3,2 billion euros in the 50,000 first generation First accounts, which Ethias sold before September 2003. They offer guaranteed high rates for life. These favourable conditions weigh heavy on the insurer, especially due to them not using the market interest rate.
Sarah Johansson (Source: Belga)