IGTA Journal - Summer 2018

What would that mean for your investment-strategy? Our investment-strategy will not change much with the changing interest rate-policy of the European Central Bank. It will continue to be essentially determined by our liability side, by our future liabilities. We invest parallel as to currencies and as to maturities. We can only realize this congruence of maturities with the fixed interest securities. For this reason, fixed interest securities will continue to be the core of our capital investment strategy. The contribution which capital investments can perform for the reinsurance prices is the lower the lower the interest rates are. Yes. But the fact is that in the past five of the past six years – in the middle of the low interest rate phase – we could achieve record results. Our reinsurance prices contain the interest income and in most cases, they are newly defined each year. When one is looking at the combined damage-cost-quotas, one realizes that they have been reduced together with the interest rates. IGTA eJournal | Summer 2018 | 14