Our investments

Handling capital with care

Sustainability criteria also apply to investments made for the ERGO Group. We take account of our 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

As a global investor, we are conscious of our responsibility to act sustainably and therefore integrate ESG criteria into our investment policy. Munich Re has set itself the goal of moving its portfolio towards a net-zero climate target by the year 2050. In that context, we have committed to divesting from thermal coal by 2040. Already today, we no longer invest in companies that generate more than 30 percent of their earnings from thermal coal mining or power generation from coal.

The Responsible Investment Guideline provides the framework for our investment management. It also sets out which topic areas cannot be considered for direct investment. These include, amongst other things, in-vestments in producers of controversial weapons (such as anti-personnel mines or cluster munition), as well as trading in or investments in food-related commodities (such as grain, oil seeds or dairy products). To combat human rights violations, we also exclude from our direct investments states and companies that are guilty of serious violations.

To ensure that investments are selected systematically based on ESG criteria, we rely, amongst other things, on data from leading providers of sustainability analyses and ratings. The bulk of the Group’s investments are managed by the Group’s asset manager MEAG.