Strategic principles
For many years now we have reviewed our corporate strategy in a three-year cycle. The present strategy is the product of the review conducted in 2011.
Our business model
- Optimise risk diversification across all lines and countries
- Generate an exceptionally high return on equity by reducing the required capital
- Expand primary insurance business in selected niche markets as a complement to our reinsurance activities
- E+S Rück: Rank among the top 2 reinsurers in Germany
- E+S Rück: Maintain or enlarge the number of minority shareholders and cultivate trusting cooperation
- E+S Rück: Expand lead mandates in Life and Non-Life
We have ambitious profit and growth targets
- Achieve triple-10 target
- Grow premium volume (by more than the market average)
- Generate profit clearly in excess of the cost of capital
- Generate an IFRS return on equity of at least 750 basis points above the risk-free interest rate
- Outperform Global Reinsurance Index over a three-year period
- Consistently pay an attractive dividend
We manage risks actively
- Ensure protection of capital through quantitative and qualitative risk management
- Maximise risk-adjusted profits
We are a preferred business partner
- Enhance our clients’ commercial success through our services
- Respond undogmatically, flexibly and quickly to the needs of our clients
- Offer standard products as well as specially tailored customer solutions that add value for both contracting parties
- Foster customer relationships to both parties’ mutual benefit irrespective of the size of the account
- Safeguard our financial capability
- Systematically seek and explore new business opportunities
- Cooperate across business groups
- Generate additional business opportunities on the basis of Solvency II
We aim for successful employees
- Promote and require a goal-oriented working approach among our staff
- Foster the qualifications, experience and commitment of our staff
- Ensure the greatest possible delegation of tasks, responsibilities and authority
- Offer attractive workplaces
- Manage staff according to our management principles
We maintain an adequate level of capitalisation
- Ensure that requirements for equity resources
(economic capital model, solvency regulations, etc.) are met - Optimise composition of the available capital
We strive for stable investment income
- Take into account the maturities of our liabilities and the liquidity requirements of our business
- Ensure currency matching
- Ensure stability of the return to be generated
- Achieve target return – risk-free interest rate plus the cost of capital
We ensure a lean organisation
- Ensure a lower administrative expense ratio than our competitors
- Information and communication systems assure optimal support for business processes in light of cost/benefit considerations
- Achieve efficient processes through excellent process management
- Maintain lean structure and organisation
We are committed to sustained compliance
- Ensure conformity with all legal requirements
- Encourage sustainable actions with respect to all stakeholder groups
- Support considered and pragmatic principles of corporate governance and recognise their central role in guiding our activities
We strive for Performance Excellence
- Ensure rigorous derivation of strategic objectives across all areas of the company
Our employees contributed to the strategy revision. The high degree of familiarity and insight thereby created is a guarantor of successful execution.