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Alte Leipziger and Hallesche Krankenversicherung: Pursuing Growth and Sustainability in Financial Aid and Insurance
Alte Leipziger Lebensversicherung and its sister company Hallesche Krankenversicherung, both mutual insurers based in Oberursel and Stuttgart respectively, are making strides in expanding their business while maintaining a focus on sustainability in their financial aid and insurance services.
In the realm of occupational pensions, Alte Leipziger considers this area its flagship, with insurance executive Bohn emphasizing the need for more active management. To grow this business, Alte Leipziger calls for more flexibility, such as in direct insurance regarding guarantees and in the pension payout phase.
The company's investment policy follows the principle of 'solidity, not excessive risk.' This conservative approach has been reflected in its involvement in infrastructure investments, such as wind farms, with plans to continue being active in this area. However, specific organizations with which Alte Leipziger will collaborate for these projects are not mentioned in the available information. In the Leipzig region, city utilities and local municipalities actively engage in wind park projects, with financial participation models involving municipalities according to the Renewable Energies Earnings Participation Act.
Alte Leipziger's products for small and medium-sized enterprises need to be simplified and made more affordable. The company argues that smaller insurers should also provide key metrics for the sake of comparability, in order to determine a company's sustainability in their finance and business operations.
Bohn also advocates for stronger standardization on important metrics to achieve genuine comparability in the medium term. He believes that standardized values could be easily compared and tailored for various audiences, including distribution partners, the public, and end customers.
Alte Leipziger's financial strength rating has been upgraded from 'A' to 'A+' by S&P in early August, reflecting the company's robust financial position in their finance and business operations. Fitch has also reaffirmed its 'A+' rating for both Alte Leipziger Lebensversicherung and Alte Leipziger Versicherung.
The company is subject to the same regulations as other insurers, but these regulations require capacities that could be devoted to other areas like processes or IT topics. Alte Leipziger is lobbying for a 'streamlining' of regulations in certain areas through the German Insurance Association (GDV).
More than half of the annual report is dedicated to the Corporate Sustainability Reporting Directive (CSRD). The easing of reporting requirements under discussion would not benefit Alte Leipziger, as it is too large for the proposed exemption.
To support low-income earners in growing the occupational pension business, additional proposals have been made. Products of Alte Leipziger and Hallesche are sold almost exclusively through brokers. As mutual insurers, owned by their members, this resonates well with customers and distribution partners.
Financial needs do not diminish with age, according to Bohn, making occupational pension plans a central element. Alte Leipziger believes that by providing more flexibility and standardized values, they can cater to various audiences and continue to grow their business while maintaining a focus on sustainability in their finance and business operations.
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