ERGO Insurance Group
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|Key people||Torsten Oletzky (Chairman of the Management Board)
Nikolaus von Bomhard (Chairman of the Supervisory Board)
|Products||Reinsurance, primary insurance|
|Employees||53 217 (2008)|
ERGO (ERGO Insurance Group, German: ERGO Versicherungsgruppe) is one of the major insurance groups in Europe. Worldwide, ERGO is represented in more than 30 countries and concentrates on Europe and Asia. In Europe, ERGO claims to be no. 1 in the health and legal expenses insurance segments, and in its home market of Germany it is among the market leaders. 50 000 people work full-time for the Group, either as salaried employees or as self-employed sales representatives.
With premium income amounting to €19bn, ERGO offers different types of insurance and other services. 40 million customers – of which 20 million in Germany – currently buy the services provided by ERGO and its companies.
ERGO is part of Munich Re, one of the world's leading reinsurers and risk carriers. Munich Re holds a 99.69% stake in ERGO.
ERGO Insurance Group belongs one of the largest German companies in the field of insurance. The activities of the group comprise the areas of life insurance, health insurance, non-life and casualty insurance, legal expenses insurance, travel insurance as well as financial services.
The main activities of the group focus on private clients, company pension schemes and medium-sized business. In Europe ERGO is the first in health and legal expenses insurance; in its home market Germany ERGO claims to belong to the market leaders in all lines of business. The company consists of:
- ERGO Life Insurance (formerly Hamburg-Mannheimer)
- ERGO Insurance (formerly Victoria)
- Vereinsbank Victoria Bauspar
- Europäische Reiseversicherung AG (in short ERV)
- ERGO Direkt Versicherungen (formerly KarstadtQuelle Versicherungen)
- MEAG - Munich Ergo AssetManagement (capital investment company of ERGO)
- Neckermann Versicherungen
- ITERGO (IT services provider of Ergo)
Outside of Germany ERGO Insurance Group operates in over 30 countries. The foreign participations are mostly bundled in ERGO International AG. ERGO is mostly active in Southern, Middle and Eastern Europe and Asia.
ERGO Insurance Group has changed the structure of its group in the second half-year 2010 and offer non-life and life insurances in the future in Germany under the trademarks ERGO. Furthermore, the direct insurer KarstadtQuelle Versicherungen was renamed in ERGO Direkt Versicherungen and health insurance was consolidated under the trademark DKV, the legal expenses insurance under the trademark D.A.S. The trademark ERV will remain in business for travel insurance. The trademarks Victoria and Hamburg-Mannheimer were removed from the market.
ERGO Insurance Group AG came into being at the end of 1997 by fusion of Victoria Holding AG and Hamburg-Mannheimer AG, the latter evolved from Hamburg-Mannheimer Versicherungs-AG, the life insurance company of Hamburg-Mannheimer-Gruppe. Hamburg-Mannheimer Versicherungs-AG had in course of the restructuring of the group transferred its whole life insurance portfolio and activities to another company that operates meanwhile again as Hamburg-Mannheimer Versicherungs-AG. Since August 1, 1997 Hamburg-Mannheimer AG stood as holding of the group. In October the company changed its name in ERGO Insurance Group AG.
On December 1, 1997 the shareholders of Victoria Holding AG that was formerly listed on the stock exchange, approved the transfer of the whole property of their companies to ERGO Insurance Group AG. Every nominal share of Victoria could be exchanged for ten bearer shares of ERGO. Victoria Holding AG disappeared from the stock exchange after the closure of the transaction on February 2, 1998; her place in MDAX was on this day taken by Ergo Insurance Group AG.
On April 1, 2001 the majority shareholder Münchener Rück (today Munich Re) announced an exchange offer to the shareholders of ERGO, in the framework of which two shares of ERGO could be exchanged in one share of Münchener Rück plus cash payment 18 Euros. After the offer had expired in July 2001, the shares of ERGO left MDAX due to the reduced free float.
On the balance sheet day December 31, 2006 the share capital of ERGO Insurance Group AG totalled € 192 279 504.20, divided in 75 492 117 bearer shares 2.60 € each. The shares of ERGO Insurance Group AG are listed on the stock exchange under WKN 841852 and ISIN DE0008418526. 94.7% (since November 25, 2009 99.69% with the purpose to raise the participation to 100% by means of the so-called squeeze out) of the shares belong to Munich Re.
Sex Scandal of Hamburg-Mannheimer
The BBC reported in May 2011 that in 2007 one of the companys subsidiaries (Hamburg-Mannheimer) had held an orgy with around 100 guests and 20 prostitutes in order to "reward" independent agents. Even though first stated as one-off event, in 2012 it was revealed by Handelsblatt that incentive trips were also arranged to Jamaikan swinger-club in 2009-2011 in Hamburg-Mannheimer.