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FIVE – investment indices for savings and retirement products

The rules-based approach for the financial success of consumers and insurers

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Savings and retirement planning – multiple needs, no compromises

Consumers expect savings and retirement products to be robust, transparent and cost-efficient. This has become increasingly challenging in a low interest rate environment. At the same time the products need to be profitable for the insurer even in the light of growing regulatory demands and reasonable implementation costs. Multiple needs in a challenging environment. With a defined set of investment tools FIVE adresses consumer and insurer needs alike.

Consumers benefit from:

  • Access to a broad investment sprectrum 
  • Efficient implementation in liquid markets
  • Combination with guarantees 

Insurers benefit from:

  • Bundling investment and guarantee component via reinsurance to increase cost-efficiency 
  • Well-defined set of rules to ensure robust product expectations – and thus consumer retention 
  • Deliberately selected range of indices and funds – ready-to-invest or tailor-made 

Five guiding principles for investment success

Rules-based
FIVE links your investments to proven investment and risk management strategies.
Diversified
FIVE follows a diversified investment approach aimed at maximizing returns while reducing risk.
Cost-efficient
FIVE pays attention to costs – the lower the fees the higher the returns.
Disciplined
FIVE focuses on producing attractive returns in the long run. Our strategies don’t get distracted by short-term noise or emotions.
Aligned
FIVE emphasizes a client-oriented performance culture – Munich Re invests proprietary capital in FIVE’s investment strategies.

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A single source of solutions for multipe financial needs

You can benefit from our FIVE investment indices in different formats – accessible via reinsurance with Munich Re. This ranges from index-linked solutions to investment funds, all perfectly fitting into your product offering, your individual reporting as well as your local legal and regulatory requirements. Thus we can leverage cost savings and process efficiencies by bundling the investment and guarantee component in one single treaty. Due to our reinsurance DNA we comprehensivly understand the risks associated to your financial needs and provide compelling risk transfer solutions. That makes our investment suite a one-stop-shop for savings and retirement products. 
Our assorted selection of proven and ready-to-invest strategies enables you to provide sustainable investment returns deliberately adressing the demands of long-lasting retirement planning. Either ready-to-invest, tailor-made or both – the FIVE tool kit covers it all.

Only FIVE steps to your tailored index

The modular character of the FIVE tool kit allows you to configure your bespoke investment strategy. In only five steps we jointly develop your tailor-made index – indvidually designed for your costumer needs.
Only FIVE steps to your tailored index
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How we support our clients – selected cases

What was the client‘s challenge?

  • Design fund management strategy for new single premium JPY savings product
  • Investment strategy should have fair equity exposure and always maintain a certain bond exposure
  • Simple, explainable and effective investment strategy
  • Investment strategy design should support the guarantee commitment of the savings product

How did we help the client?

  • Designing our recommendation on the basis of the classic balanced fund approach
  • Differentiating element: regime-based mechanism controls bond/equity allocation (BEST = “Bond + Equity Strategy”)
  • Bond (major global government bonds) weight always above a certain threshold
  • Long/neutral positions in individual equity markets (major global equity index markets) according to trend-signals in line with identified equity market trends

 

What was the client‘s challenge? 

  • Need for new index-linked savings product marketable to retail customers 
  • Innovative investment to differentiate in the market:
    • Providing a "safety net" by construction
    • Offering an attractive return expectation
    • Showing reliable risk behavior in order to stabilize upside participation

How did we help the client?

  • Offering the client our large investment universe across a global and very diverse asset-space
  • Advising on how return requirement and risk appetite are best reflected in the investment strategy
  • Client chose a diversified multi-asset index applying sophisticated risk management techniques

Download more on FIVE indices

Do you want to launch an index-linked life insurance product?

Arrange a personal meeting with our experts right away and check out how you can benefit from FIVE investment indices.

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Talk to our experts
Michael Ege
Michael Ege
Head of Trading, Modelling and Technology Munich Re Markets
Markus Jaeger
Senior Investment Expert Munich Re Markets
Stephan Krügel
Senior Investment Expert Munich Re Markets