German health insurers suffer €173 million loss from risky real‑estate fund

Eleven statutory health insurers and six Kassenärztliche Vereinigungen invested more than €173 million in the Verius Capital real‑estate financing fund, which has lost most of its value after a sharp slowdown in the property market. The largest exposures are held by the KKH (€47.4 million), the Kassenärztliche Vereinigung Baden‑Württemberg (€50 million), Hessen (€30 million) and Schleswig‑Holstein (€16 million); the KV Schleswig‑Holstein has declared a total loss.

The fund mainly purchased subordinated loans for property developers; rising interest rates and project defaults caused a steep decline in its assets. At least five of the affected institutions have filed lawsuits against the financial firms, accusing them of misrepresenting the risk. The defendants argue that risk disclosures were provided and professional investors should have conducted their own due diligence. The first court hearing is scheduled for December 2026. So far, contributions from insured persons remain protected and there is no direct impact on health‑care benefits.

The case has raised questions about the oversight of investment decisions by German health insurers and the adequacy of regulatory controls governing the use of contribution funds.