ERGO SEX FOR SALES SCANDAL WILL BLAME INDIVIDUAL MANAGERS: REPORT

An internal investigation by German insurer Ergo, the primary insurance arm of Munich Re, into a 2007-trip for sales executives to Budapest that was also attended by prostitutes, will allocate most of the blame to individual managers within the company, according to German business paper Handelsblatt. Ergo's audit department is understood to have pinned much of the blame on Ludger Griese, then head of sales at Ergo subsidiary HMI. Mr Griese was said to have known about the trips from late 2007, but had not taken any action. Ulf Redanz, senior to Mr Griese, had approved the trips and had also taken no action. Ergo CEO Torsten Oletzky had found out in June 2010, but had also taken no action, the report is understood to say. In May 2011 Handelsblatt broke the story. Mr Redanz has since left the company.