Munich Re reduces stake in Helvetia
Munich Re has sold part of its stake in Helvetia Holding AG, St. Gallen. The shareholding has been reduced from approx. 8.2% to under 3%. By selling off this interest, Munich Re has lowered concentration risks in its portfolio. The successful cooperation between Munich Re and the Swiss insurer over many years remains unaffected by this step.
A total of 450,000 shares with a market value of around €119m were sold; this corresponds to around 5.2% of Helvetia’s share capital. Munich Re is thus realising a gain of some €90m, to be booked in the 2nd quarter of 2010.
Munich Re’s shareholding in Helvetia goes back to 1988 and most recently totalled 8.16%. The sale is part of Munich Re’s consistent risk-management approach, which proved its worth over the last few years. By selling the shares, Munich Re is reducing the resultant concentration of risk and ensuring a healthy mix in its equity portfolio.
The disposal of these shares does not reflect any change in Munich Re’s assessment of the present or future performance of Helvetia. “Business relations with Helvetia remain unaffected by this step”, stressed Georg Daschner, Board member responsible for Munich Re’s reinsurance business in Switzerland.
This media information 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 make them conform to future events or developments.