Sustainable in wealth accumu­lation and investment

PrismaLife considers its product portfolio for risk protection and in particular for pension and asset accumu­lation of its customers to be a sustainable concept by nature. This is because its goal is to ensure the long-term quality of life and standard of living of its customers. In addition, PrismaLife is committed to making its product strategy even more sustainable.

A major leverage factor for this are the invest­ments, both in the form of the contract-related fund invest­ments of the customers and within the scope of PrismaL­ife’s own investment for the actuarial reserves, used for coverage of the guarantees for the customers. While the first are individ­ually selected by the customer, the latter are subject to the investment decisions of PrismaLife. In either case, sustain­ability effects can be achieved through appro­priate investment criteria and decisions.

Sustainable investing based on ESG criteria

In a changing (financial) world, the issue of sustainable investing is becoming relevant for more and more investors. Investing according to the so-called ESG factors (Environment, Social, Gover­nance) is more than pure philan­thropy for us. The invest­ments are the greatest leverage factor for sustainable operation of the company. They are based on an assessment of the prospects for returns and takes into account additional factors as for example, regulatory frame­works such as the Paris Agreement on Climate Change and the UN’s Sustainable Devel­opment Goals.

We base our invest­ments on ESG criteria

One of the major leverage factors for sustainable management are our invest­ments. The ESG criteria for the selection of invest­ments are comple­mentary to the classic criteria of security, returns and liquidity. For example, the issue of socially respon­sible investing is considered for a sustain­ability analysis of the invest­ments. The criteria are based on the UN Principles for Respon­sible Investment (UN PRI). In addition, factors such as the intensity of carbon emissions are factored into the investment decisions. In 2020, 56% of the carbon emissions could be saved by using this approach compared to a tradi­tional portfolio without corre­sponding investment criteria.

PrismaLife is above average in sustain­ability

For the first time in 2018, PrismaLife evaluated the invest­ments in the actuarial reserves according to ESG criteria and subse­quently reallo­cated the portfolio. Our objective was to achieve the highest possible ESG standard without disad­van­tages for security, returns and liquidity. This objective was achieved both in 2018 and in the following years, 2019 and 2020. For the year 2021, further optimi­sa­tions of our own invest­ments with respect to sustain­ability criteria are planned. In addition, the fund selection of PrismaLife offers its customers an above-average selection of about 50 sustain­ability funds at present.

Each customer partic­i­pates in the decision

The pension and risk products and the corre­sponding fund concepts are at the core of the business case of PrismaLife. Risk and pension plans are by nature oriented towards long-term and sustainable targets. These factors are accord­ingly weighted highly by all stake­holder groups and by the company.

There are many options for policy­holders to optimise their personal carbon footprint. The unit-linked life insurance policies of PrismaLife AG offer customers a compre­hensive selection of sustainable funds for their individual invest­ments — in addition to the invest­ments of the actuarial reserves, which are optimised according to ESG criteria. This enables savers for their pension to achieve two goals at the same time: building up a personal pension and supporting sustain­ability goals with their assets.

At the end of 2020, sustainable funds were included in around 6,400 customer portfolios, with a total investment of more than 28 million euros. PrismaLife raises awareness of its sustainable fund selection through an active commu­ni­cation policy towards customers and distri­b­ution partners. PrismaLife will continue to extend its broad selection of sustainable funds in the future.

Sustain­ability strategy

The focus on sustain­ability is a central pillar of PrismaLife – more on the “sustain­ability strategy”

ESG at PrismaLife

Our corporate respon­si­bility covers many areas of “Environment, Social, Gover­nance” – more on “ESG at PrismaLife”