Munich Re and ERGO Versicherungsgruppe plan to set up a joint money management arm running more than 200 billion deutsche marks (U.S.$112 billion), making it one of the biggest domestic investors in Germany. The companies are joining forces in preparation for the introduction of the euro next year and expected changes in European capital markets.
Officials at ERGO, a life insurer, are expected to take most of the responsibility because the insurer will provide most of the assets.
