Munich Re refocuses on reinsurance in Australia and New Zealand
Following a strategic review, Munich Re considers divesting its primary insurance arm Great Lakes Australia (GLA).
Sydney. GLA is the Australian branch of Great Lakes Reinsurance (UK) SE (Great Lakes). Great Lakes is a wholly owned subsidiary of Munich Re. GLA was registered in Australia in 2007 and operates as a specialist insurer within Munich Re. Munich Re’s growth ambition and positioning for the specialty niche business in Australia and New Zealand could not be achieved by GLA over the past several years. To be successful in the competitive and consolidated Australian market environment, a critical size is indispensable.
After a strategic review, Munich Re has come to the conclusion that the capabilities of GLA might be better realised with a change in ownership. Therefore, Munich Re will pursue a divestment of its primary insurance arm in Australia and New Zealand. GLA currently has a gross written premium of around Aus$ 500m.
Australia remains an important market for Munich Re, which will now have a clear focus on reinsurance. The company will continue to be a strong partner in property and casualty as well as in Life reinsurance business. The change announced today allows Munich Re in Australia and New Zealand to refocus on where it can provide the best value to the market and its reinsurance clients.
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