The CEO of one of the world's largest reinsurance companies has launched a scathing attack on the policies of the European Central Bank (ECB) whilst revealing that the firm is diversifying into gold and currencies to tackle the current environment of negative rates.
Munich Re is a leading reinsurance firm - offering insurance for insurance companies. Based in Germany, the company has a 231 billion euro ($261 billion) investment portfolio which contains a 324 million euro investment in physical gold.
But negative rates in the euro zone have left the company thirsty for yield, which is vital in the world of insurance and reinsurance. Chief Executive Nikolaus von Bomhard has therefore announced that it is diversifying the company portfolio to try to combat the recent moves by the ECB.
"We are just trying it out, but you can see how serious the situation is," von Bomhard said at a press conference this week, according to a report by Reuters on Thursday.