Corporate governance

We attach importance to considering the future in everything we do and to a corporate culture that allows personal responsibility to flourish.

Good corporate governance means responsible company management geared to long-term creation of value. Of particular importance to the Munich Re Group in this context are consideration of shareholders' interests, efficient practices on the Board of Management and Supervisory Board, fruitful collaboration between these bodies, and open and transparent corporate communications. Continually improving our corporate governance is an important principle underlying our business activities.

In Germany, where Munich Re has its headquarters, corporate governance rules are laid down principally in the German Stock Companies Act, the German Co-Determination Act and the German Corporate Governance Code. The Code, which came into force in 2002 and has since been amended several times, provides a framework for the effective and responsible management of companies. Every year, Munich Re publishes a statement indicating the extent to which the Code's recommendations have been complied with.

With its global operations, the Munich Re Group is also subject to corporate governance rules in a number of national legal systems. Clearly, we observe not only national standards but also internationally recognised best practices.

Our firm commitment to the highest ethical standards also at international level is clearly visible to everyone. In August 2007, the Munich Re Group joined the United Nations’ Global Compact initiative, which works to advance ten international principles for companies and organisations in the areas of human rights, labour, the environment and anti-corruption.

In 2006, Munich Re introduced a special code of conduct that serves as a guide to the fundamental legal and ethical requirements that all staff up to and including Board level must comply with in carrying out their duties.

In 2006, in line with the German Corporate Governance Code, the remuneration of each Board member was published for the first time in the annual report. Thus, all of the Code's recommendations have been implemented, with the exception of the remuneration of the Supervisory Board. Munich Re takes the view that the desired remuneration system for members of supervisory boards, linked to the long-term performance of companies, does not exist yet in a satisfactory form. In our opinion, the current system of remuneration approved at our 2005 Annual General Meeting represents a good solution from a corporate governance point of view.

At Munich Re, we believe that clear communication is also a part of good corporate governance. We are not only talking about the transparent reporting on the development of business required of listed companies but also about defining what we mean by corporate integrity as clearly as possible. It is important that we do this to ensure that new staff and business partners from all cultural backgrounds are acquainted with our values.