ERGO presents Strategy Program: Investing and saving towards a successful future
ERGO Group AG is going to great expense to get fit for the future. The Strategy Program of Munich Re’s primary insurance group covers all the material activities of an insurer, from sales and products to managing the business. By investing significantly – above all in IT – ERGO is laying the foundation for digitalizing its business.
Nikolaus von Bomhard, Munich Re’s CEO and Chairman of ERGO’s Supervisory Board, said: “The Strategy Program of ERGO’s CEO Markus Rieß will ensure that ERGO can once again become a strong source of earnings for Munich Re.”
ERGO will invest a total net figure of €1bn up to 2020. The money will largely flow into modernizing the Group’s information technology. Markus Rieß, who is ERGO’s CEO and also a member of the Board of Management of Munich Re, commented as follows: “We are leveraging the opportunities of digitalization to ensure a successful future for ERGO.” By consolidating sales organizations and paring down administration costs, ERGO plans to lower its cost basis by around €540m gross (around €280m net) by 2020. The measures will lead to the loss of around 1,800 jobs in Germany.