ERGO press releases concerning the business segment "Life Insurance" - RSS feed

Top marks again for occupational disability insurance from ERGO

Wed, 23 Jan 2013 00:00:00 +0100

Press release 23 January 2013

For the sixth time, German life insurer ERGO Lebensversicherung has proven its expertise and reliability with its occupational disability cover. The independent insurance analysis agency Franke und Bornberg has given the occupational disability insurance from ERGO Lebensversicherung its top FFF (“outstanding”) rating.

Occupational disability cover is a complex business segment, where customer orientation, experience and stability all have an especially important role to play. Just how a provider overcomes these challenges is shown in the annual occupational disability rating carried out by Franke und Bornberg. Figures alone will not get an insurer very far in this demanding process since experts also check business processes on-site at the company’s premises. Only a few insurers are ready to face the strict requirements of the occupational disability rating.

Reliable partner
In 2013, ERGO was awarded the highest mark of FFF (“outstanding”) in the aforementioned rating, where for the sixth time, ERGO has demonstrated its high level of expertise when it comes to occupational disability cover. “We are very proud of this string of success”, said Dr. Daniel von Borries, Chairman of the Board of Management at ERGO Lebensversicherung. “It shows that our customers have found a reliable partner in ERGO who can always be depended upon.”

Exceptional performance
Three areas are tested as part of the occupational disability rating procedure: customer orientation in settling benefits, customer orientation in the offer and application stage and the stability of occupational disability business. Franke und Bornberg were impressed by ERGO’s benefit settlement: the evaluation of one hundred randomly selected occupational disability insured events demonstrated the high quality of processing, customer support and benefit-related decisions.

Clear statements
During the offer and application stage, the analysts were particularly impressed with the customer-focused and clearly laid-out insurance application and declaration of health. The material is presented in clear language and puts the ERGO claim “To insure is to understand” into practice.

Long-term stability
Franke und Bornberg are in no doubt of the stability of occupational disability business: the analysts attest to the efficient controlling of ERGO with which possible risks can be identified quickly. They also judged conditions to stably manage portfolios and tariffs over a long period of time to be very good.

For further information, please contact:

ERGO Versicherungsgruppe AG
Media Releations
Robert Hirmer

Tel +49 211 477-6874
Fax +49 211 477-1511
robert.hirmer@ergo.de
media-relations@ergo.de

About the ERGO Insurance Group
With premium income of € 20 billion, ERGO is one of the major insurance groups in Germany and Europe. Worldwide, ERGO is represented in more than 30 countries and concentrates on Europe and Asia. ERGO is one of the market leaders in all segments in its home market of Germany. More than 50,000 people work for the Group, either as salaried employees or full-time self-employed insurance agents.
ERGO offers a broad range in insurance, provision and services. More than 40 million customers, of which 20 million are based in Germany alone, place their trust in the expertise, security and support provided by ERGO and its experts in the various fields of business.
ERGO is part of Munich Re, one of the world’s leading reinsurers and risk carriers.
More at www.ergo.com

Disclaimer
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO Lebensversicherung. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forwardlooking statements or to conform them to future events or developments.

Stability comes first: ERGO to reduce policyholders' bonus in 2013

Tue, 04 Dec 2012 00:00:00 +0100

Press release 4. December 2012

As a result of the persistent low interest rates on the capital markets, German life insurer ERGO Lebensversicherung is dropping the total interest return for new business by 0.6 percentage points. In its new tariffs, ERGO Lebensversicherung will be crediting its customers with a total interest return of 3.55 per cent. ERGO is thus securing the financial strength of life insurance business. This decision is setting a clear signal: as far as old-age provision is concerned, long-term security is more important than short-term promises of earnings.

The policy of low interest rates pursued by the European Central Bank and the extremely high demand for sound interest-paying investments are making it increasingly difficult for security-oriented investors to achieve reasonable rates of return. Sound interest-bearing securities such as German ten-year government bonds are currently only offering a 1.4 percent rate of return for new investments.

An end to this low period of interest rates is not in sight. It is seriously affecting insurers and customers in particular since secure interest-bearing securities form a major part of investments. Due to ERGO’s investment strategy which is based on stability, ERGO is nevertheless able to face the difficult situation on the financial markets from a position of financial strength.

Forward-looking strategy
“We began to hedge against long-term low interest rates as far back as 2005”, stated Daniel von Borries, in charge of life insurance business and investments on the ERGO Insurance Group Board of Management. “It would be fatal if we were to change this stability-geared strategy in the current period of low interest rates.”

Interest return in detail
In 2013 the sum of guaranteed interest and current policyholders’ bonus with ERGO Lebensversicherung is set at 3.2 percent (2012: 3.8 percent). Furthermore, there is the terminal bonus and basic participation in valuation reserves which will remain unchanged at 0.35 percent.

Customers with German life insurer Victoria Lebensversicherung are to receive 3.0 percent, made up of guaranteed interest and current policyholders’ bonus (2012: 3.5 percent). If the terminal bonus and basic participation in valuation reserves are included in this figure which, together, account for the unchanged sum of 0.35 percent, Victoria Life will be paying out a total interest return of 3.35 percent in 2013 (2012: 3.85).

Existing customers with both ERGO Life and Victoria Life will be receiving the guaranteed interest at the very least. This may turn out to be more for older tariffs than the total interest return stated for 2013.

Details of overall interest return
The so-called maximum technical interest rate is an amount set by legislation, stipulating the interest rate above which rate the life insurer may not guarantee to its customers. It applies to the entire term of the policy and is generally referred to by the media as the “guaranteed interest”. This figure stands at 1.75 per cent for new business written in the current year. The maximum technical interest rate will not change for tariffs introduced in 2013.

However, guaranteed interest only constitutes one part of overall interest return. A significant portion of the earnings stem from returns achieved from the investments made by the life insurers. Generally, total interest return comprises guaranteed interest, current policyholders’ bonus allocated on a yearly basis as well as a terminal bonus and a participation in the valuation reserves.

The German Federal Financial Supervisory Authority has stipulated that life insurers must publish how these bonuses are distributed in so-called adequacy reports.

For further information, please contact:

ERGO Versicherungsgruppe AG
Media Releations
Robert Hirmer

Tel +49 211 477-6874
Fax +49 211 477-1511
robert.hirmer@ergo.de
media-relations@ergo.de

About the ERGO Insurance Group
ERGO is one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in over 30 countries and concentrates on Europe and Asia. ERGO offers a comprehensive spectrum of insurance, provision and services. In its home market of Germany, ERGO ranks among the leading providers across all segments. 50,000 people work for the Group, either as salaried employees or as full-time self-employed sales representatives. In 2011, ERGO recorded a premium income of 20 billion euros and paid out benefits to customers amounting to 17.5 billion euros.
ERGO is part of Munich Re, one of the world’s leading reinsurers and risk carriers.
More at www.ergo.com

Disclaimer
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO Insurance Group. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forwardlooking statements or to conform them to future events or developments.

Thomas Bischof appointed to VORSORGE Board of Management

Tue, 12 Jun 2012 00:00:00 +0200

Press release 12 June 2012

As of 1 July 2012, Thomas Bischof will assume responsibility for Sales within the Board of Management of German life insurer VORSORGE Lebensversicherung AG in addition to heading the Bank Cooperation Division of the ERGO Insurance Group.

Thomas Bischof (37) will take over the duties of Dr. Andreas Jahn on 1 July 2012 who has been appointed to the SV SparkassenVersicherung Board of Management.

Bischof has been working for the ERGO Insurance Group since June 2009, most recently heading Group Development. An MBA graduate, Bischof began his career in 2003 with AXA insurance company. Between 2006 and 2008 he managed strategic projects for financial service providers at Boston Consulting Group, a management consultancy, where his work focused on sales and claims management.

For further information, please contact:

ERGO Versicherungsgruppe AG
Media Releations
Robert Hirmer

Tel +49 211 477-6874
Fax +49 211 477-1511
robert.hirmer@ergo.de
media-relations@ergo.de

About VORSORGE
VORSORGE is a specialist insurer for custom-made development and administration of innovative unit-linked products for old-age provision. They are sold under the VORSORGE brand or as so-called white label products by other ERGO brands and third-party insurers and sales organisations. With individual software solutions, VORSORGE deals with administration and customer service. In addition to all options of corporate pension schemes, the brand also offers lifelong working time accounts to employers. Together with its subsidiary VORSORGE Luxemburg, the company managed about 385.000 contracts in 2011 with a premium volume of 555 million euros.
VORSORGE is a member of the ERGO Insurance Group and thus part of Munich Re, one of the world's leading reinsurers and risk carriers.
More at www.vorsorge-leben.de

Disclaimer
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of VORSORGE. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forwardlooking statements or to conform them to future events or developments.

VORSORGE Life increases premium volume by 29 percent

Thu, 24 May 2012 12:05:00 +0200

Press release 24 May 2012

2011 was a truly successful year for life insurance company VORSORGE Lebensversicherung. The specialist insurer for unit-linked policies within the ERGO Insurance Group saw a significant increase in its figures for both new and existing business. Premiums rose to above 500 million euros for the first time. In 2012, VORSORGE hopes to continue this growth trend on the basis of transparency and high-performance services.

In the 2011 financial year, VORSORGE Lebensversicherung AG, together with its subsidiary VORSORGE Luxemburg Lebensversicherung S.A, managed some 385,000 (371,000 ) contracts with premiums totalling 555 (430) million euros. “The VORSORGE companies have managed to increase their premium volume by 29.1 percent on the previous year. This is a remarkable achievement and proof of the confidence which our customers and sales partners place in us”, stated Frank Wittholt, member of the Board of Management of VORSORGE Lebensversicherung AG.

Strong business links with banking partners
Cumulated new business of both companies stood at 225 (118) million euros, almost twice that of the previous year. This encouraging increase was largely due to investment-type single-premium product developed jointly by VORSORGE and HypoVereinsbank. “This success proves that the decision to focus more on business with banking partners was the right one”, said Dr. Andreas Jahn, member of the Board of Management of VORSORGE Lebensversicherung AG.

Success in all business segments
The insurance portfolio of VORSORGE’s German business also grew last year. The number of contracts rose to 149,500 (141,000), an increase of 6 percent. Including TPA business, VORSORGE AG was able to increase its portfolio by 6.3 percent to 301,000 contracts (283,000). TPA stands for third-party administration, i.e. administrative services provided to other primary insurers. Gross premiums written for direct business rose by 7.7 percent to 186 (172) million euros. Regular premiums amounted to 170 (158) million euros, while single-premium business stood at 16 (14) million euros. Together with TPA business, VORSORGE managed contracts with premiums written totalling 357 (326) million euros. This represented a marked increase of 9.6 percent on the previous financial year. The administration expense ratio, at 2.52 percent, was the same as in the previous year, while the acquisition expense ratio stood at 3.85 percent.

Retirement products - a growth market
Consumers are becoming increasingly aware of the need to make provision for old age, and VORSORGE will benefit from this trend. “Unit-linked polices offer many configurations for personal retirement plans. Our customers are able to gear their contracts entirely to their individual needs, be it in terms of the tariff they choose or in determining the right investment strategy”, stated Frank Wittholt, stressing VORSORGE’s expertise in the field of unit-linked provision products.

The annual reports of VORSORGE Lebensversicherung AG and VORSORGE Luxemburg Lebensversicherung S.A. can be downloaded in German from www.vorsorge-leben.de and www.vorsorge-leben.lu under the menu option “Unternehmen”.

More information

Annual report 2011 VORSORGE Lebensversicherung AG - PDF file (German version)

For further information, please contact:

ERGO Versicherungsgruppe AG
Media Releations
Robert Hirmer

Tel +49 211 477-6874
Fax +49 211 477-1511
robert.hirmer@ergo.de
media-relations@ergo.de

ERGO life insurers fare well in times of uncertainty

Wed, 23 May 2012 07:50:00 +0200

Press release 23 May 2012

In 2011, insurance customers were looking for security and stability more than ever before and ERGO fulfilled these hopes in the past financial year too. It successfully overcame the challenges posed by the public debt crisis and policy of low interest rates. ERGO life insurers are well equipped, even for a longer period with low interest rates. In the long term the strong market position and a broad product range will open up new growth opportunities for ERGO in the private and company pension market.

Consumers continued to rely on the stability of life insurance policies for old-age provision in 2011. ERGO Lebensversicherung recorded a 16.5 percent rise in new business based on regular premiums during the 2011 financial year, up from 201 million euros to 235 million euros – a very clear statement. During the same period, single premiums fell 15 percent to 870 (1,023) million euros as a result of a cautious underwriting policy. This led to a decline in gross premiums written, down by 5.9 percent to 3.2 (3.4) billion euros . At 51.0 (61.6) percent, classic annuity policies once again represented the most significant pillar of new business. In 2011, the position of company pensions was considerably reinforced and its share in new business accounted for 39.1 (28.1) percent.

15 million euros in benefits paid out every day
At the end of the past financial year the portfolio of life insurer ERGO Lebensversicherung stood at 5.8 (5.9) million contracts, and policies with regular premiums accounted for 2.3 (2.4) billion euros. Last year, the company paid out 3.9 (3.7) billion euros in benefits, which works out to an equivalent of 15 (14) million euros for each working day. These expectable benefits mean a lot to customers, especially in times of uncertainty, which can be demonstrated by the lapse ratio which continues to fall: from 2.8 to 2.6 percent based on existing policies. The ratio was down from 5.3 to 5.1 percent when measured against regular premiums. The acquisition cost ratio fell from 6.3 to 6.0 percent, and the administration expense ratio remained on par with the previous year at 2.7 percent.

Challenges facing the capital market
“The trend on the interest rate markets in 2011 was unprecedented”, stated Dr. Daniel von Borries, Chairman of ERGO Lebensversicherung. “The combination of a strong demand for secure long-term investments and a liquidity surplus to save the banks pushed down interest rates in Germany to a record all-time low.” And it is ultimately all German savers and life insurance customers who are having to bear the brunt of this development. In face of this challenging situation ERGO life insurers were forced to reduce the overall return on interest for 2012 in order to safeguard the reserves and strengthen the risk capacity. “Even if this period of low interest rates were to go on for a long time, we are well equipped to deal with it”, said von Borries. At the end of the financial year the investment portfolio stood at 38.9 (38.8) billion euros. Net investment result amounted to 1.7 (1.6) billion euros, and the net interest return remained on par with the previous year at 4.2 percent.

Victoria Life – new business merely from adjustments
As the ERGO Insurance Group transferred new life insurance business to ERGO Lebensversicherung from 2010 as part of its new brand strategy, new business acquired by Victoria Lebensversicherung amounting to 63 (129) million euros merely stems from increases in existing business. A moderate decline in overall premium income to 1.1 (1.2) billion euros was recorded. The lapse ratio, based on regular premiums, fell from 6.6 to 5.6 percent. On the basis of contracts it remained unchanged at 4.2 percent. Victoria Life managed an insurance portfolio of 1.52 (1.67) million contracts up until the end of the 2011 financial year with regular premiums amounting to 1.0 (1.1) billion euros. The company paid out on average 8.0 (7.0) million euros on every working day. Overall, customers received benefits to the value of 2.3 (1.9) billion euros. The administration expense ratio rose slightly to 3.7 (3.4) percent; by contrast, the acquisition cost ratio fell to 3.4 (5.3) percent.

Transparency in company pensions
The second edition of the brochure “Zahlen, Daten, Fakten – Die betriebliche Altersversorgung“ (Facts, figures and data on company pensions) has appeared at the same time as the annual reports of the ERGO life insurers. Besides ERGO Lebensversicherung and ERGO retirement funds, ERGO Pensionfonds (pension fund) provides company pension schemes too. The brochure summarises the overall development of company pensions provided by ERGO. The quality standards comply with requirements of tried and tested company reports. “Part of ERGO’s mission statement is the transparency of services”, stated Frank Neuroth, member of the ERGO Lebensversicherung Board of Management in charge of company pensions. “The positive response to our initial report on company pensions last year confirms this approach.”

More information

Annual report 2011 ERGO Lebensversicherung AG - PDF file (German version)
Appendix annual report 2011 - PDF file

Annual report 2011 Victoria Lebensversicherung AG - PDF file (German version)
Appendix annual report - PDF file

Company pension brochure - PDF file (German version)

Key figures of ERGO life insurers (based on HGB) 2011

		ERGO Life		Victoria Life
		2011	2010	2011	2010
Premium income	€ billion	3.4	3.6	1.1	1.2
New business	€ billion	1.1	1.2	0.06	0.13
Existing business	contracts million	5.8	5.9	1.5	1.7
Paid-out benefits	€ million	3.9	3.7	2.3	1.9
Investments	€ billion	38.9	38.7	17.9	19.1
Net investment result	€ billion	1.6	1.6	0.7	0.7
Net interest return	%	4.2	4.2	3.7	3.8
Acquisition cost ratio	%	6.0	6.3	3.4	5.3
Administration expense ratio	%	2.7	2.7	3.7	3.4
Gross surplus	€ million	443	623	152	235
Net income	€ million	41	47	29	23

For further information, please contact:

ERGO Versicherungsgruppe AG
Media Releations
Robert Hirmer

Tel +49 211 477-6874
Fax +49 211 477-1511
robert.hirmer@ergo.de
media-relations@ergo.de

ERGO’s occupational disability cover gets top marks

Thu, 19 Jan 2012 13:58:00 +0100

Press release 19 January 2012

The independent German insurance analysis agency Franke und Bornberg has given the occupational disability insurance from life insurer ERGO Lebensversicherung its top FFF (“outstanding”) rating. In a complex process, analysts carried out an in-company audit of the insurer’s internal figures and the quality of its business processes. This is the fifth time that ERGO has proved its high level of competency in the area of occupational disability cover.

Each year almost 200,000 Germans have to give up work because of an accident or illness. However, since the 2001 pension reform, the state has largely withdrawn from protecting against this risk. It is therefore all the more important to have private provision on the basis of an occupational disability insurance policy. When taking out such insurance, consumers should carefully consider whom they can trust. “Securing against occupational disability is a complex area, and customer focus, experience and stability are particularly important”, stated Dr. Daniel von Borries, Chairman of the Board of Management of ERGO Lebensversicherung. “Our exceptional result in this rating shows that we are a top player and a partner that our customers can rely on.”

High customer focus
In the latest audit, analysts have rated ERGO Lebensversicherung with the top FFF (“excellent”) mark. This was also the case last year. When rating companies offering occupational disability insurance, Franke und Bornberg examines three areas: customer focus during the offer/application stage, customer focus in settling payments and the stability of occupational disability business. In the complex rating process, the experts do not just rely on the figures supplied. Franke und Bornberg also checks business processes at the company’s premises. As regards customer focus during the offer/application stage, Franke und Bornberg emphasises that ERGO Lebensversicherung has a clearly structured application form, a well-balanced cover focussing on needs and a rapid processing of applications and above-average acceptance rate.

Reliable performance
As far as the payment settlement is concerned, the experts praised the company’s pronounced customer focus, as evidenced by its rapid processing, and the clearly explained decisions and assistance received when submitting an application. ERGO also made a good impression in terms of its benefits: the degree to which time limits and individual agreements are used is lower than average. This is also true for abstract referrals, cancellations and appeals. Franke und Bornberg is convinced by the stability of the company’s occupational disability business: the agency also certifies the efficient controlling by ERGO Lebensversicherung, with which possible risks can be identified quickly. The prerequisites are very favourable for maintaining the stability of current portfolios and tariffs.

For further information, please contact:

ERGO Versicherungsgruppe AG
Media Releations
Robert Hirmer

Tel +49 211 477-6874
Fax +49 211 477-1511
robert.hirmer@ergo.de
media-relations@ergo.de