Germany remains a ‘hotspot’ for major insolvencies in Western Europe, accounting for one in three company bankruptcies, according to new data from Allianz Trade.
The credit insurer recorded 33 insolvencies among German companies with annual revenues above €50 million during the first half of 2026, an increase of 10% compared with the same period in 2025.
In 2025, Allianz Trade recorded 94 major insolvencies in Germany, compared with 87 in 2024, the highest annual figure since its analysis of major insolvencies began in 2015.
‘No respite’
“There will be no respite from major insolvencies in 2026 either,” commented Milo Bogaerts, CEO of Allianz Trade in Germany, Austria and Switzerland.
“The negative trend from last year is solidifying. This is a warning sign for the German economy. It shows that the pressure to adapt remains enormous in many sectors. Large companies are often at the centre of complex value chains. If a market participant of this size fails, suppliers, service providers, and other business partners often come under pressure as well.”
On a sector-by-sector basis, the automotive industry recorded the largest number of major insolvencies in Germany during the first half of 2026, with seven cases. Retail followed with five, while mechanical engineering and services each recorded four.
The combined annual turnover of German companies affected by major insolvencies during the first half of 2026 was around €4.5 billion, 3% higher than in the same period a year earlier.
At the same time, the average revenue of insolvent companies fell by almost 7% to around €137 million, indicating that smaller companies were increasingly represented among insolvency cases.
Insolvencies in Western Europe
Across Western Europe, Allianz Trade recorded 325 major insolvencies over the four quarters to the end of the first half of 2026. Germany accounted for 97 cases, followed by France with 69, Italy with 62 and the UK with 45.
“One in three insolvencies in Western Europe over the past twelve months originated in Germany,” Bogaerts added. “We do not expect any lasting improvement in the situation over the course of the year. The number of large insolvencies is likely to remain at an elevated level in 2026. Sectors with high investment and energy costs, as well as companies with limited pricing power, will remain particularly vulnerable to financial difficulties.”
Globally, the insurer recorded 247 major insolvencies during the first half of 2026, 13% more than in the corresponding period of 2025. On a sectoral basis, retail recorded the highest share, with 59 cases, followed by services with 38 and construction with 33. Western Europe accounted for more than 60% of major insolvencies recorded worldwide during the period. Read more here.
