by Mark O’Byrne
The world’s largest reinsurer, German reinsurer Munich Re is boosting its gold reserves and buying gold in the face of the punishing negative interest rates from the European Central Bank, it announced today.
As reported by Thomson Reuters this afternoon:
The world’s largest reinsurer is far from alone in seeking alternative investment strategies to counter the near-zero or negative interest rates that reduce the income insurers require to pay out on policies.
Munich Re has held gold in its coffers for some time and recently added a cash sum in in the two-digit million euros, Chief Executive Nikolaus von Bomhard told a news conference.
“We are just trying it out, but you can see how serious the situation is,” von Bomhard said.