Our investments

Handling capital with care

The principles of sustainability also apply to investments made for the ERGO Group. We take account of this responsibility by prudent and far-sighted investment management supported by a sophisticated controlling system.


Maximum security for customers

Investment guidelines drawn up by our parent company Munich Re and the Principles for Responsible Investments (PRI) which we signed up to in 2006, provide the framework for our sustainable investment strategy across the Group.

The primary objective of our investment management is to be in a position to meet our commitments to customers at all times. The following objective applies to all lines of business: maximum security for the investors. The investment strategies are based on the differing insurance benefits. For example, in a traditional life insurance the guaranteed benefits must be generated alongside the bonus, whereas health insurance demands the ability to pay ongoing costs and making provision to pay for any higher health benefits as customers get older. We therefore need to ensure in all lines that the maturities for our investments match the terms for our commitments.

Managing commitments strategically

MEAG, the joint asset manager of ERGO and Munich Re, manages the investments of ERGO. The company is one of the major investors in the European finance sector. A comprehensive, joint controlling system operated by ERGO and MEAG ensures that we meet the commitments to our customers over the long term. A dedicated early-warning system at the ERGO Group monitors compliance with the mandate specifications to MEAG every day. This also takes account of the investment categories, quality and limits.

We invest primarily in shares, corporate and government bonds as well as in public interest-bearing securities which comply with sustainability criteria. To this end, our asset manager MEAG is relying on data by MSCI, a leading provider of sustainability ratings and research. MEAG invests the capital according to the provisions and guidelines of our process for sustainable investments. This approach ensures that our investments meet our requirements on sustainability on a permanent basis.

In line with our corporate responsibility strategy, we strive to contribute to mitigating the impact of climate change with our investments, too. Consequently, we support the energy transformation and the renunciation of fossil fuels, and have taken the Group decision not to invest in companies that generate more than 30 percent of their revenues from coal extraction or coal-fired power generation.

Our sustainable investment strategy enables us to ensure that ERGO is able to meet its commitments to its customers today, tomorrow and in the future. This strategy also allows us to achieve appropriate returns. In order to attain this objective, we take a very refined and forward-looking approach to risks. And because sustainable investments entail fewer risks over the long term than other types of investment, we factor in environmental and social standards, compliance with rules of conduct in corporate governance, and avoidance of environmental pollution. We believe that investing sustainably pays off for customers of ERGO over the long term.

Holger Kerzel, MEAG Managing Director