Regulatory disclosures

Corporate Profile

ERGO Insurance Pte. Ltd. is a registered general insurer regulated by the Monetary Authority of Singapore. We are a wholly owned Singapore subsidiary of ERGO Group AG, one of the major insurance groups in Germany and Europe, and we are the primary insurance arm of Munich Re, one of the leading reinsurers and risk carriers worldwide.

We want to become a leader in the Singapore market by offering innovative insurance solutions that meet the needs of our intermediaries and our mutual customers. We want to underwrite a balanced portfolio of insurance risks that allow us to achieve a profit that is commensurate to our risk appetite and the available risk capital. Within this setting, we want to grow the portfolio and achieve a size that enables the Company to be competitive in the long-term.

We offer a comprehensive range of personal insurance products from private motor to travel and personal accident; and commercial insurance coverage for commercial motor, work injury compensation, bonds, engineering, property, health, corporate personal accident and corporate travel, financial lines and marine, and we strive to provide the best distribution reach to our customers.

The Company is led and controlled by an effective Board that is collectively responsible for the long term success of the Company. The Board oversees the Company’s risk management policies and processes.

The Board has full access to and co-operation of the Management. The internal and external auditors have unrestricted access to the Board.

The senior management of the Company reports to the Board on strategies and businesses of the Company, including any updates to its policies from time to time. ERGO Insurance Pte Ltd is in compliance with the Corporate Governance requirements in Singapore.

The Board of Directors of ERGO Insurance is responsible for establishing a consistent and solid risk management framework. The Board is assisted by the Risk Management Committee.

The Company’s risk management framework includes the Risk Strategy, Risk Management Policy and Own Risk and Solvency Assessment (ORSA).The Risk Strategy establishes which risks Ergo is exposed to and defines the risk tolerances through suitable risk criteria, e.g. limits and triggers. The Risk Management Policy documents the roles & responsibilities and processes to identify, measure, manage and monitor risks. The Company performs the ORSA every year to assess the adequacy of our risk management and our current and projected future solvency positions.

The Company has implemented the “three lines of defence” concept and has in place segregation of duties between the first line of defence (risk-taking business units), second line of defence (Risk Management and Compliance, providing independent oversight) and third line of defence (Internal Audit, providing quality assurance).

The Company has an asset-liability team which comprises of relevant functions. The asset-liability team has quarterly meetings and discusses Strategic Asset Allocation and Asset-Liability Management issues and proposes investment solutions to the Company’s management.

Managing Insurance Risk

The underwriting strategy of the Company is to seek diversity to ensure a balanced portfolio and long-term profitability. Risk control measures such as implementation of underwriting guidelines and underwriting authorities setting out the limit that any one underwriter can write are in place to ensure appropriate risk selection within the portfolio of business to be underwritten. The systematic controlling of the portfolio, regular monitoring of market environment and regular reserve review and, if applicable, ensure that premium income and claims payments remain in an appropriate balance.
The Company reinsures a portion of the risks it underwrites in order to control its exposure to losses.

Managing Financial Risk

The main risks arising from the Company’s financial instruments are credit risk, liquidity risk and market risk (comprising interest rate risk, foreign currency risk and price risk).

In order to manage these risks, the Company pursues an investment strategy that is substantially based on the characteristics of the maturity and currency structure of liabilities. In addition to return, safety and creditworthiness, the investment decision considers liquidity, diversification and above all the structure of the insurance liabilities.

Interaction Between Capital Adequacy and Risk

Having identified the key risks, the Company carries out stress testing analysis annually which estimates the impact of major loss events related to insurance risk estimates and financial risk on the Company’s Capital Adequacy Ratio.

Details of the management of key insurance and financial risks can be found in the notes section of the audited financial statement. click here

Determination of Technical Provisions

For the determination of the technical provisions the management relies significantly on the actuarial valuation performed by an approved actuary in accordance with local insurance regulatory requirements. The technical provisions were determined assuming future cash flow will follow its historical experience. The provision is not discounted because its impact is immaterial.

Given the uncertainty in establishing a provision for outstanding claims, it is likely that the final outcome may be different from the original liability established.

Details of the qualitative and quantitative technical provisions can be found in the notes section of the audited financial statement. click here

The Company’s capital management policy aims to:

  • maintain a strong capital base to sustain and grow the business so as to uphold investors, creditors and market confidence;
  • comply with the regulatory capital requirements for the Company; and
  • provide an adequate return to shareholders through prudent underwriting of insurance risks and optimising investment returns within the risk parameters established by the Board.

The Company determines the amount of capital in accordance with business expansion needs as well as to meet the regulatory capital requirements for the Company.

Details on the company’s capital adequacy can be found in the notes section of the audited financial statement. click here

The ERGO Group follows a liability-driven investment approach. The risk of the investment portfolio is measured in terms of its deviation from a structure that would match liabilities. The investment portfolio follows the principles of prudence, profitability and liquidity. The investment management ensures a well-balanced asset mix and a good degree of diversification.

Details on the Company’s investments can be found in the notes section of the audited financial statements. click here