ERGO life insurers adjust overall rate of return


Current market development affects 2022 profit sharing

Media Information, 10.12.2021

ERGO Vorsorge Leben, the ERGO Group’s life insurance provider, is adjusting its current overall rate of return for 2022. Similarly, ERGO Leben and Victoria Leben, the two companies responsible for traditional life insurance products, are to adjust their overall rates of return from last year. 

“In light of persistently low interest rates, the ERGO life insurance companies will make a slight downward adjustment to the profit sharing for 2022,” says Michael Fauser, Chair of the Board of Management of ERGO Vorsorge Lebensversicherung AG. “ERGO remains a reliable and financially strong partner for its customers,” he stressed. “This is again underlined by ERGO Vorsorge’s high solvency ratio of 577%, which is exceptionally high when compared with the market average, and by its best ever and recently confirmed credit rating of AA from rating agency Assekurata.”

Total rates of return in detail:

ERGO Vorsorge Leben: ERGO Vorsorge Lebensversicherung will be setting a current interest rate for 2022 of 2.2%. Added to this will be 0.2% from the terminal bonus and the basic share in valuation reserves. This brings the overall rate to 2.4%.

ERGO Leben: ERGO Lebensversicherung will be setting a current interest rate for 2022 of 1.85%. Added to this will be 0.25% from the terminal bonus and the basic share in valuation reserves. This brings the overall rate to 2.1%.

Victoria Leben: The current interest rate for 2022 at Victoria Leben will be 1.85%. Customers will also receive 0.25% from the terminal bonus and their basic share of the valuation reserves. The overall return is thus 2.1%.

Sustainable investment strategy
At its life insurance companies, ERGO continues to follow an optimal investment strategy that is tailored to the business model in each case, in order to ensure a durable and attractive rate of interest by generating suitably high current income. As part of this strategy, ERGO is expanding its commitment to sustainable infrastructure financing in segments such as wind power, district heating and rail networks, and also in real estate financing. ERGO Vorsorge Leben is also making increased use of the return opportunities on the equity markets.

Background to overall rate of return
Each year, insurers calculate their earnings from investments and other profit sources. Their customers receive a share of the profits. At the end of each year, the insurers decide on the running yield and whether any maturity bonus will be paid out to their customers. Taken together, this constitutes the overall rate of return. In many policies, the bonus also includes a share of the valuation reserves.

Existing customers are paid at least the interest rate guaranteed at the time their policy was signed.

The distribution of the bonuses is reported by the insurers to the German Federal Financial Services Authority (BaFin).

Dr. Dr. Michael Fauser

For further information, please contact:

Jan Fulle

ERGO Group AG
Media Relations

Tel +49 211 477-8518
jan.fulle@ergo.de
media-relations@ergo.de

About the ERGO Group AG
ERGO is one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in around 30 countries and concentrates on Europe and Asia. Four separate units operate under the umbrella of the Group: ERGO Deutschland AG, ERGO International AG, ERGO Digital Ventures AG and ERGO Technology & Services Management AG. German, international, direct and digital business as well as the global management of IT and tech-nology services are combined there.
About 38,000 people work for the Group, either as salaried employees or as full-time self-employed sales representatives. In 2020, ERGO recorded a total premium income of over 18 billion euros and rendered benefits to customers (gross) of around 16 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 media information contains forward-looking statements that are based on current assumptions and forecasts of the management of ERGO 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.

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