ERGO Vorsorge, the ERGO Group’s life insurance provider, is maintaining its overall rate of return for 2023. Similarly, ERGO Leben and Victoria Leben, the two companies responsible for traditional life insurance products, will not be changing their overall rates of return from last year.

“The improved interest rates in the capital markets constitute an important and positive signal for policyholders in an otherwise very unstable economic environment. We remain prudent in this context, and are maintaining our overall rates of return and profit participation at ERGO Vorsorge Lebensversicherung in 2023”, states Michael Fauser, CEO of ERGO Vorsorge Lebensversicherung AG, and emphasises: “ERGO is a dependable and financially solid partner for its customers. This is once again underlined by the exceptionally high solvency ratio of 440% for ERGO Vorsorge without transitional measures, and its best ever – and recently confirmed – credit rating of AA from the Assekurata rating agency.”

Overall rates of return in detail

ERGO Vorsorge Leben: ERGO Vorsorge Lebensversicherung will be maintaining the current interest rate of 2.2% in 2023. 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 the current interest rate for 2023 at 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 2023 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).