Thanks to our investment strategy, we achieve attractive returns over the long term and our insured persons benefit from the best interest rate possible.

We prefer tangible and real assets (equities, real estate, infrastructure) over nominal assets (bonds) because they generate higher real returns (meaning that they maintain purchasing power). Nominal assets have a limited yield potential and, when inflation rates are high, their real cash value falls. Diversified tangible and real assets can protect against a total loss in times of crisis, while nominal assets can then be eroded by inflation.

This is also shown by a study by Pictet.

Capital markets are efficient. Therefore, we expect investments with higher levels of risk to be compensated by a higher rate of return (risk premium). Our investment strategy is geared towards systematically absorbing risk premiums. That is why we rely on asset classes that provide an economically identifiable risk premium in the form of capital gains or income (dividend or interest).

We do not invest based on market forecasts or trends. Instead, our investment strategy is to buy and hold quality companies over the long term. This reduces trading costs and increases the expected return. Quality companies feature a high level of profitability, sustainable growth, a solid balance sheet and a positive free cash flow. Focusing on quality companies has the advantage of avoiding investment risks, for which we are not compensated adequately.

We have a classic countercyclical asset allocation strategy. Because of the differences in returns between the different asset classes, their weighting changes over time. By using step-by-step rebalancing, we restore the strategically defined weighting at medium-term intervals. This means, for example, that we buy equities counter-cyclically when prices fall sharply, and vice versa, that we sell stocks counter-cyclically when prices rise sharply.

Our insured persons should continue to benefit from sustainably high benefits in the future. For that reason, our sustainability strategy is geared in such a way that the achievable return is not impaired by the measures taken. In addition to norms-based exclusions (the SVVK exclusion list), ESG integration is an integral part of our investment process. This involves understanding the key ESG factors that an investment is exposed to and ensuring that the associated risks are compensated. We focus on the investment areas that we can influence directly. For example, we have continuously reduced the carbon footprint of our equity portfolio. In the case of directly held real estate, our lifecycle management is geared towards CO2 neutrality and, by participating in engagement pools, we are in an active dialogue with companies. As a result, our portfolio meets high ESG standards with its AA rating. More about sustainability.