Claim and motivation

Munich Re is guided by the principle of sustainability, even and particularly in these difficult times for our Group. We take what might be termed a holistic view of sustainable activity, one that embraces economic performance as well as cultural, social and, of course, ecological aspects. In all these areas we aspire to create growing and lasting value. To this end, we draw on experience from the past, combine it with prospective analysis, and actively shape our future now.

Environmental protection and sustainable development are of strategic importance for Munich Re. We regard economy and ecology not as opposites but as two inseparably linked aspects of our long-term-oriented business operations.

One of the areas in which these links are particularly close is climate protection. By systematically integrating aspects of sustainability into our business, we ensure the highest possible quality in the acceptance of risks and thus promote the success of our business in the long term.

Responsible underwriting of risks and judicious risk management are conditions we must fulfil to ensure the quality of our business in the long term and to maintain and enhance the value of our company. As insurers, we are especially committed to the precautionary principle.

What is more, Munich Re is affected by major losses on two counts: through our assumption of a large portion of the indemnification and by the reaction of the capital market to such events, which can have a major impact on the value of Munich Re shares.

This applies in particular to those topics perceived to be the predominant global challenges of the future such as climate change, global energy supplies, developments in genetic engineering, and the associated implications for our underwriting and our investments. Furthermore, we expect the market for socially responsible investments (SRI) to continue expanding throughout the world. Consequently, higher demands are placed on the company's information policy.

Fund managers, rating agencies, and research teams expect the corresponding approach adopted by the companies and their respective activities to be transparent. Here too, Munich Re has a dual role to play: as an object of investment and as a major investor. Accordingly, it has to satisfy calls for increased transparency, but it can also benefit from these developments in the way it allocates its own capital.

Environmental protection and sustainability are of fundamental importance to Munich Re on a variety of levels: in reinsurance and primary insurance, in our investments and in the way we conduct relations with our investors, in how we handle resources in our daily working lives and in our analyses of the effects of climate change. Our firm commitment to the guiding principle of sustainable development and our incorporation of sustainability factors into our business processes assist us in particular in our endeavours to

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  reduce the impact of natural catastrophes,
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  exploit risk-avoidance potential,
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  meet the requirements of increased rating activities,
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  safeguard the appreciation in value of our investments in the long term and
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  maximise capital value (shareholder value) in the long run.