German insurance firm organised sex party for salesmen

20 May 2011 Last updated at 06:49 ET Help

One of the world's biggest insurance companies organised an orgy with prostitutes for its top salesmen at a Hungarian spa.

Ergo, a division of German firm Munich Re, has confirmed that this happened in 2007.

Gerhard Schneibel, journalist for the media organisation Deutsche Welle, told BBC Radio 5 live: "There was plenty of alcohol and 20 prostitutes there."

"They had colour-coded arm-bands, apparently," Schneibel explained to 5 live Breakfast.

"One was for regular hostesses, the other was for prostitutes, and the white ribbon was for prostitutes reserved for top management."

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