One of the biggest insurance companies in the world held a party for salesmen where they were rewarded with the services of prostitutes.

Munich Re is the world's biggest re-insurer - in other words, the company acts as an insurance company for other insurance companies.

One of its divisions, Ergo, told the BBC that the party had taken place to reward salesmen in 2007.

A spokesman said the people who organised it had since left.

The gathering was held at a thermal baths in the Hungarian capital Budapest as a reward to particularly successful salesmen.

There were about 100 guests and 20 prostitutes were hired.

A German business newspaper said the prostitutes had worn colour-coded arm-bands designating their availability, and the women had their arms stamped after each service rendered.

According to Handelsblatt, quoting an unnamed participant, guests were able to take the women to four-poster beds at the spa "and do whatever they liked".

"After each such encounter the women were stamped on the lower arm in order to keep track of how often each woman was frequented," the paper quoted the man as saying.

"The women wore red and yellow wrist bands. One lot were hostesses, the others would fulfil your every wish.

"There were also women with white wrist bands. They were reserved for board members and the very best sales reps."

A spokesman for Ergo told the BBC that the party had happened, but said it was not the usual way of rewarding their employees.

The company said it had introduced a new code of conduct.

"We've taken all the right steps to prevent it happening again," he said. "It was a mistake but we are very sure that it was a unique event.

"The new people of the sales organisation introduced a very personal commitment that these things should not happen again.

Source: http://www.bbc.co.uk/news/world-europe-13454160