Ergo Group, the primary insurer of reinsurance giant Munich Re, has revealed plans to generate increasing profit for the reinsurer moving forward after the successful restructuring of its operations.
After launching a full-scale restructuring project in 2016 the Ergo Group is now structured to operate more efficiently, with the firm citing that its ERGO Strategy Programme (ESP) has started to take effect.
When the ESP completes in 2021, Ergo has revealed that it plans to contribute over €600 million a year, in the long-term, to the annual profit of its parent company, reinsurer Munich Re.
Generally, and perhaps even more so now with reinsurance market conditions under increasing pressure, the Ergo unit provides the overall Munich Re business model with diversification.
The restructuring of Ergo focused on greater investment in digitalisation and the strengthening of its international organisational structures.
Markus Rieß, Ergo’s Chief Executive Officer (CEO), commented; “Fit, digital and subsequently successful – these are the goals we have set ourselves.”
Chief Operating Officer (COO), Alexander Ankel, added; “We aim to strengthen our presence in selected countries, invest in growth markets and roll out global business models.”