A unit of Munich Re, the world's largest re - insurer, Ergo is under fire for reportedly hosting an orgy to reward "deserving" salesmen.

Reports said the unusual party was held in the HUngarian capital of Budepest at the historic Art Nouveau thermal baths. To complete the Roman-style orgy, Ergo hired prostitutes to serve the pleasures of those who attended.

An independent report from a German business newspaper Handlesblatt revealed that the company hired at least 20 prostitutes for the event. The prostitutes wore colour-coded arm-banks to notify their availability.

Handelsblatt quoted an unidentified participant in the party that guests were encouraged to
take any available woman to 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 women wore red and yellow wrist bands. One lot were hostesses, the others would fulfil your every wish," the paper quoted its source as saying.

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

In a statement, Ergo confirmed that the party was held but the company regretted it. The firm described the orgy as a "serious violation" of company rules.

"The managers and board members responsible no longer work for us," a spokesman said.