MUNICH RE INTERESTED IN CLOSER BANK LINK, BUT NOT A MERGER

Munich Re has confirmed that it is interested in increasing its holding in German bank HypoVereinsbank — but has rejected talk of a takeover or full merger. A company spokesman told IFD ’s sister publication the Re report that the reinsurer would be interested in closer links, because of the benefits it could bring for its Ergo primary insurance subsidiary, which already sells some products via the bank’s network. “We would clearly be interested for our subsidiary Ergo to strengthen its existing co-operation on distribution”, he noted. The spokesman added that no specific talks were taking place, but noted that Munich Re, which already holds a 6.5% interest in HypoVereinsbank, would be interested in taking all or part of a 17.4% stake in the bank which is expected to be released by Germany’s Allianz. Munich Re insisted that a full merger with the bank was not in its interests.