Munich Re closes life subsidiary in Moscow
12:00 AM CEST 2011/06/24
Munich Re will return the licence for its subsidiary MR Life E.E.C.A. in Moscow. Since 2006, MR Life E.E.C.A. has offered primary insurers in the CIS reinsurance cover for insurances of the person while supporting companies in developing their business. Munich Re will honour ongoing treaties. Active obligations towards cedants will be transferred to Munich or returned to the ceding companies. Clients may rescind their contracts without suffering any disadvantage. Settlement agreements will be reached with MR Life EECA staff.
The reason for returning the licence is the restrained development of the insurances of the person markets and consequently a change in demand for reinsurance. In addition, the minimum capital requirement for Russian reinsurers will quadruple as from 1 January 2012 to €16m. The business therefore cannot operate at a profit in the medium term. However, Munich Re has every confidence in the long-term prospects for insurances of the person in the CIS markets, so that it does not rule out the possibility of re-establishing its commitment to this line of business in the CIS at a later juncture.
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.