German insurance companies represent some of the largest institutional investors in Germany. A recent survey conducted by Ernst & Young revealed that the majority of the questioned German insurance companies planned to raise their real estate quota on average to approximately 6.3 percent by the end of 2009. The market value of the real estate assets managed by the German insurance companies surveyed totalled almost Ä50 billion. According to the survey, German insurance companies have shown an interest in investing directly and indirectly in real estate in Europe, with a particular focus on Germany, as well as in Asia and North America.

IN FOR A PENNY

This article will attempt to shed some light on the at times bewildering world of German insurance regulatory provisions. Specifically, this article will focus on certain German regulatory issues that may arise in c