IGTA Journal - Summer 2018

disadvantage of the ongoing valuation is less material. And they do indeed provide a high ongoing return. How high could be the portions of these asset classes in the future within your total capital investment? Concerning real estate, we recently also look at South America and Asia. Our realistic quota of presently 5 % we could certainly further increase to 6 – 7 %. However, one must not forget: Our capital investment volume has been growing significantly. Already in order to maintain the existing percent-ratio, we must find new investment opportunities. The private equity portion of our total capital investment portfolio presently is at 2 % and could increase to 3 %. In the very short term this, however, is not to be expected. The capital investment volume is presently at 40 billion Euro. What do you regard as possible over the medium term? The capital investments should grow proportionately with the reinsurance business. We continue to pursue the objective in the reinsurance business, to grow up to 5 % per year. And this over the long term and beyond the cycle when overproportionate und underproportionate growth will match off against each other. Year after year, the reinsurance business will not grow by 10 %. Assuming a growth of 5 %, an increase of the capital investments to over 50 billion Euro in the next 5 years would be imaginable. Is the importance of the capital investment management growing in relation to the property & casual and the life reinsurance business? No. Because this would then mean, that we would direct more capital towards the capital investment. But we are not planning to increase the risk appetite within our capital investment. Why not? Because we are a reinsurer and because we will remain this. Investing capital is something which others can do as well. We need the capital investment for an optimal risk diversification as much as possible. Our risk is almost by 40 % at the capital market risks, by almost 40 % in the area of property casual reinsurance and by around 25 % in the area of life reinsurance. This distribution of risk we regard as reasonable and sustainable. Adaptations, in dependence of market cycles, are always possible. But to expose us more strongly to capital market risks and to capital market fluctuations, would also not be in the interest of our shareholders. Don’t you have to incur higher capital market risks, because you are a reinsurer? Yes, we are one of the purest reinsurers. Competitors who are also active in front end insurance, usually are positioned higher in capital market risks. We want to concentrate on reinsurance. Would we move more of our capital into capital market risks, then this would mean that the reinsurance does not provide enough for us. This is not the case. IGTA eJournal | Summer 2018 | 16