According to CEO Christoph Bohn, specialised and flexible solutions, product and management quality, as well as a strong capital base, are Alte Leipziger’s key competitive advantages. These factors were decisive in S&P upgrading Alte Leipziger Lebensversicherung’s financial strength rating from „A“ to „A+“ in early August. A few days later, Fitch confirmed its „A+“ rating for both the life and property insurer Alte Leipziger Versicherung. „An A+ is a huge achievement for a firm of our size,“ said the head of the Alte Leipziger Hallesche Group in an interview with Börsen-Zeitung.

The remarkable thing is that the insurance group, headquartered in Oberursel (Alte Leipziger) and Stuttgart (Hallesche Krankenversicherung), has built its strong capital base entirely through retained earnings. „We do not use the capital markets for this,“ emphasises the CEO. The fact that Alte Leipziger Leben is a mutual insurer – owned by its members – resonates well with both customers and distribution partners. Bohn explains: „The idea behind it is: I help myself through a collective.“ The products of Alte Leipziger and the Hallesche, which are organised in the same equal-ranking group, are sold almost exclusively through brokers.

Bohn also emphasises that "as a mutual insurer, we are subject to the same regulations as other insurers organised, for example, as joint-stock companies.“ While the regulatory framework does not overwhelm Alte Leipziger Hallesche, „it naturally requires capacities that we could otherwise devote to other areas such as processes or IT topics.“ The regulations are not inherently wrong, he adds, because they create transparency: „However, one can debate the design and the excessive bureaucracy in certain areas.“

This particularly concerns some reports and required documentation. More than half of the annual report is dedicated to the Corporate Sustainability Reporting Directive (CSRD). While this is fundamentally not a problem for Alte Leipziger, the effort involved is considerable.

The easing of reporting requirements currently under discussion would not benefit Alte Leipziger, Bohn says, since „we are too large for that.“ The exemption proposed under the so-called EU Omnibus Package would only apply to companies with fewer than 1,000 employees. He takes a critical view of this with regard to transparency and comparability. Once the currently partially unavailable data become available, the question must be answered which key metrics are decisive: „For the sake of comparability, smaller insurers should also provide them.“, he argues. After all, the goal of the regulation is to be able to determine a company’s sustainability.

Alte Leipziger is lobbying in Brussels via the German Insurance Association (GDV) to achieve a „streamlining“ of regulations „in certain areas.“ „It would be my wish to see a more targeted approach here,“ says Bohn. „If you look at the CSRD reports, the question arises: Who actually reads them as they are now?“

The end customer certainly does not, Bohn is convinced. At least for Alte Leipziger, it is the questions from distribution partners that take precedence. They try to use this information to provide their own assessments in conversations with clients, which then differ from other sustainability inquiries. „We need stronger standardisation on truly important metrics in order to achieve genuine comparability in the medium term,“ the insurance executive insists.

Bohn also cautions that there is a risk each rating agency could apply its own metrics. Standardised values, by contrast, could be easily compared and tailored for various audiences – distribution partners, the public, and end customers. „At the moment, however, we do not have this flexibility,“ he notes.

Alte Leipziger considers occupational pensions its flagship area. For Bohn, this is a central element that needs to be more actively managed. „I have to ensure that people have a lifelong income,“ he says. He believes financial needs do not diminish with age. Occupational pension plans are mainly with large companies.

To grow this business, the CEO of Alte Leipziger Hallesche calls for more flexibility – for example, in direct insurance regarding guarantees and in the pension payout phase. Products for small and medium-sized enterprises in particular need to be simplified and made more affordable. Other proposals are also on the table, as Bohn emphasises, such as additional support for low-income earners. „The legislator could make a decision on this tomorrow and increase the penetration rate,“ he adds.

In its investment strategy, Alte Leipziger has so far relied primarily on traditional fixed-income securities. However, according to Bohn, this will gradually change in favour of other assets. In recent years, the group has been heavily involved in infrastructure together with partners, for example in wind farms. „We will continue to be active there,“ he says. The investment policy follows the principle of „solidity, not excessive risk.“