Ergo Insurance Group

Ergo, Germany’s second-largest primary insurance group, reported a 10% rise in pre-tax profit to DM1.6bn (US$747mn) in 1999. This was largely the result of its highly profitable foreign operations, which produced a profit of DM155mn, up 83% on the previous year. By contrast, Ergo’s domestic operations produced a modest increase of 6% to DM1.5bn. Ergo’s net profit was up by 42% to DM913mn, largely because of a one-off revaluation of deferred tax liabilities brought about by the lowering of German corporation tax from 45% to 40%.