MUNICH RE CONSIDERS KOREAN ACQUISITION

German reinsurer Munich Re has declared an interest in acquiring Korean assurer Kumho Life. The world’s second-biggest reinsurer is looking to expand its Asian presence in the general insurance market through its majority-owned insurance operation Ergo and, according to Munich Re chief executive Nikolaus Von Bomhard, the group is “very interested” in the possibility of buying into Korea, currently the world’s seventh largest insurance market. Munich Re will likely face competition for Kumho Life with fellow European insurers Allianz, Prudential and ING also reportedly expressing interest. Munich Re does have a presence in South Korea through its 65% stake in online motor insurer Daum Direct and remains relatively unscathed from the current financial crisis. Indeed, according to Mr Von Bomhard, the current economic conditions may result in a more favourable price for Munich Re should it make any acquisitions. “So far, we felt we would have overpaid. Now it will change,” said Mr Von Bomhard.