Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006
into long-term strategic partnerships: thanks to flexible
general conditions and close cooperation on the underwriting
side, we have offered selective cedants the chance
to make themselves less dependent on the capital markets.
Through an exclusive partnership with an international
corporation in the US agricultural industry, we have also
acquired an alternative direct distribution channel that can,
in addition, be transferred to other markets. In sum, we
were able to substantially increase our market share in US
agricultural insurance.
Our primary insurers place the emphasis of their
research and development on forecasting demographic
trends and incorporating the results into product design.
For these trends constitute important parameters for
calculating policy terms and thus for structuring products.
Besides this, demographic change is affecting social security
systems and consequently influencing our clients’
need for private provision.
In order to be able to work with all the available information,
ERGO collaborates closely with the Intergenerational
Compacts Research Centre at the Albert Ludwig
University in Freiburg, whose areas of research include
old-age provision, healthcare, long term care and tax. Our
product development combines the scientific findings of
the research centre with our own knowledge and ERGO
insurers’ own extensive experience with clients.
ERGO’s life insurers also use their own mortality tables
in order to have customised data available for their specifically
structured portfolios. The health insurers make use
of the mortality tables developed by the German Association
of Private Health Insurers. Our actuaries work closely
with the German Association of Actuaries to constantly extend
and update their knowledge of client life expectancy.
Munich Re Group staff
Primary insurance companies 29,509 (79.3%)
106
Staff
Management report_Other success factors
Our staff provide the basis for our success with their competence,
motivation and commitment. They embody the
qualities with which Munich Re turns risk into value. That
is why we invest consistently in further developing their
skills.
Facts and figures
On 31 December 2006, 37,210 (37,953) staff were employed
with the Munich Re Group worldwide, 6,928 (6,798) in reinsurance,
29,509 (30,465) in primary insurance and 773 (690)
in asset management. In primary insurance, the number of
employees sank by 956 to 29,509 compared with the end
of 2005. This largely reflects the changes in Group companies:
ERGO’s sale of the IT service provider ADA alone
resulted in a reduction of around 1,100 employees in Germany.
The acquisition of the Turkish I . sviçre Group has led
to the addition of 478 employees outside Germany. On
balance, owing to strong growth abroad, we are expanding
personnel there, whereas in Germany we show a net reduction
of 1,688 staff. Where jobs have been cut, this has
been done through natural fluctuation and with due regard
to social aspects, avoiding redundancies. In reinsurance
and asset management, on the other hand, staff numbers
increased slightly by 130 and 83 respectively.
Munich Re’s staff turnover rate has been consistently
low for years, a fact that indicates our attractiveness as an
employer and our employees’ identification with the Company.
ERGO’s higher figure is mainly attributable to group
acquisitions and disposals.
Reinsurance companies 6,928 (18.6%)
Asset management 773 (2.1%)