MUNICH RE CONSIDERING HEALTH INSURANCE MOVE, DENIES CONVERIUM PLANS

Munich Re expects double-digit percentage premium growth in its small health insurance operation and CEO Nikolaus von Bomhard said that he could “imagine strengthening the operations via acquisitions”. Speaking at a press conference yesterday to mark the company’s release of its 2006 figure, Mr von Bomhard said that Munich Re anticipated a lower profit for 2007 than in the exceptionally benign 2006, but that the dividend would be kept unchanged. He said that Munich Re was not interested in entering the bidding for Switzerland-based Converium. He said that Munich Re would be focusing on organic growth , “except maybe for potential acquisitions in life reinsurance”. He also stated that there were no plans to buy out the minority stakeholders in Munich Re’s primary arm Ergo. Mr von Bomhard estimated that Florida’s extension of its own reinsurance capacity was likely to reduce gross premium income by €100m. Mr von Bomhard also observed that Munich Re’s debt structure was “an urgent issue” that was currently being discussed. It had been speculated that Munich Re would restructure its debt to include a hybrid debt component.