Munich Re Sees Softer Reinsurance Market
Nikolaus von Bomhard, Munich Re's chief executive, in an investor conference over the Internet, relayed that he sees somewhat weaker prices and conditions in reinsurance ahead, giving added importance to the group's primary insurance activities.
Mr. von Bomhard said that he expected primary insurance to grow faster than reinsurance and that the group's ERGO insurance unit was a "cornerstone" of the group. "ERGO's business is not subject to the reinsurance market cycle and so provides result stability."
Some analysts have suggested the world's second-biggest reinsurer would be better off selling ERGO, but Munich Re has argued that it makes sense to span both the primary insurance and reinsurance markets.
Published on December 13, 2007
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