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Member, Beacon International Group, Ltd.
DUSSELDORF, Germany—Munich Reinsurance Co. unit Hamburg-Mannheimer International admitted Thursday that it rewarded its 100 best producers with prostitutes at a 2007 orgy held in Budapest's thermal baths.
“We confirm that several prostitutes attended one evening event during the multiday trip to Budapest. Further details are currently under examination,” ERGO Insurance Group A.G, a Dusseldorf, Germany-based unit of Munich Re that merged with HMI in 2009, said in a statement.
“This constitutes a grave violation of binding company guidelines, in particular the ERGO Code of Conduct which applies to all employees, executives and board members of all companies of the entire group in Germany and abroad,” the statement said.
The executive responsible for the temporary Budapest brothel and the board member in charge no longer are employed by ERGO. Moreover, “the new management of the HMI sales organization has taken all steps necessary to prevent any such things to happen in the future,” according to the statement.
According to German media reports, guests attending the 2007 event were searched prior to entering and barred from photographing or videotaping the event.