Munich Re looking at primary insurance acquisitions

However, firm says prices in the market are currently too high and don’t seem like going down soon

Munich Re looking at primary insurance acquisitions

Insurance News

By Gabriel Olano

Munich Re, one of the world’s largest reinsurers, is open to making major acquisitions in the primary insurance sector, if the price is right. This was revealed by the company’s chief financial officer.
 
“We are open to large acquisitions but the prices simply haven’t been right in recent years,” Munich Re CFO Jörg Schneider told German newspaper Handelsblatt.

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Schneider said that acquisitions are currently too expensive and are not reflective of the growing insecurity in the world’s business and social climates. He doesn’t expect prices to go down in the short term.
 
“If we were to make an acquisition, however, then it wouldn’t be in traditional reinsurance,” Schneider added. “Primary insurers with a specialization that complements our know-how and for whom we offer a bigger platform would be ideal takeover targets.”
 
Meanwhile, German insurance giant Allianz has inquired about acquiring Australian insurer QBE. If the deal pushes through, Allianz will be able to knock off AXA to become the world’s largest insurer in terms of total assets. Furthermore, Italian bank Intesa Sanpaolo is looking at acquiring Generali, Italy’s largest insurer, and dividing it with Allianz.

 
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