MEAG gains a full mandate worth billions

MEAG will soon be responsible for the entire value chain of an investment mandate with a volume of billions of Euros from a German life insurance company. Dr. Robert Helm, MEAG Managing Director responsible for Sales, says: "The money is in safe hands with us. Even during the financial crisis we not only held the value of the assets we manage, we increased it. Our strictly risk-controlled management approach, which we developed and cultivate for Munich Re and ERGO, is ideal for the needs of all German life insurers."

The first half of 2010 went well in Sales. Dr. Robert Helm summarises: "MEAG shows its ability to provide solutions when companies seek to outsource their capital management. We take on the entire asset management value chain for them that we already cover for our own company group. Like a footballer who can play the same position for his club as in the national team, MEAG can make the most of its strengths when it has the same position with new customers as for the group."

MEAG currently manages € 8.1 billion for customers from outside the group, € 6.2 billion of which for institutional customers and € 1.9 billion for private individuals. MEAG also posted further cash inflows by issuing a Triple-A rated money market fund combined with the issue of a catastrophe bond. Dr. Stefan Arneth, Head of Sales for Institutional Customers, says: "Investors want security. We brought our group's assets safely through the crisis. And word of that is getting around."

Insurance companies are increasingly distancing themselves from highly volatile commitments in stocks, due to smaller risk budgets and expensive capital adequacy requirements. Dr. Robert Helm says: "Equities are a tactical asset class that we use opportunistically in fluctuating markets. But the volatility is so high that it no longer makes sense for insurance companies to hold large amounts of stocks over the long term."

MEAG in Munich is the asset manager of Munich Re and ERGO. With offices in New York and Hong Kong, MEAG has an international orientation and also manages the assets of clients outside Munich Re und ERGO. MEAG currently manages assets to the value of around € 204 billion. MEAG's Kapitalanlagegesellschaft (KAG) is responsible for the investment business with private and institutional clients.