Munich Re holds London Press Conference on Solvency II
On November 19 ,2009 Munich Re held a Press Conference in London about the current status of Solvency II. Speakers were CFO Jörg Schneider, CRO Joachim Oechslin and Margarita von Tautphoeus, Head of Solvency Consulting. Here are some noteworthy excerpts from the speakers:
Jörg Schneider: "Europe is a kind of frontrunner with the Solvency II initiative which is an excellent masterpiece of all parties involved. It is the right answer to the crisis: Regulatory systems should be harmonized, they should be fully risk-based, fully economic and on a very sophisticated level".
Joachim Oechslin: "There is quite some discussion in the ongoing implementation phase. The latest consultations seem to indicate a disproportionate increase in conservatism, even in areas that have little to do with the recent financial crisis. We are optimistic that in the end regulators and policymakers will decide on a reasonable calibration that is consistent with economic principles adopted in the framework directive."
Margarita von Tautphoeus: "A strong rating becomes a clearer competitive edge for reinsurers. Financial strength of reinsurers will be more important than diversification by number of counterparties. To quote an example: The capital relief of a reinsurance treaty with only one AA-rated reinsurer will be greater than with a panel of six A-rated reinsurers."
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.