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Are your products exposed to financial markets?

We are eager to solve your risk and investment management challenges by combining financial market techniques and advanced reinsurance concepts.

What we offer

Munich Re Markets reinsures savings and investment products. We provide you with the payouts required to meet your customer obligations, regardless of how markets develop.

Our services allow you to compete with new product innovation in your market and effectively manage your risk and capital profile of your portfolios. 

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We manage and reinsure the risks of your existing savings and investment products. Typical use cases include:

  • M&A driven changes in portfolio composition
  • Regulatory changes in product treatment
  • Excessive risk exposure on an existing product portfolio
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We support the design and roll out of new savings and investment products to your chosen markets. Typical use cases include:

  • Reinsurance of financial guarantees to policyholders
  • Delivery of investment strategies for unit- and index-linked products
  • Provision of benefit illustration tools and digital front-ends to support traditional and online distribution   
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We provide capital financing against both open and closed product portfolios to support strategic capital management projects. Typical use cases include:

  • M&A acquisition financing against future portfolio profits
  • Commission financing for open product lines
  • Intra-group capital management such as subsidiary dividend financing

What we have done

We have implemented hundreds of financial market risk solutions for numerous clients globally for more than 10 years. These transactions are typically driven by strategically significant events requiring a change of risk management arrangements for existing portfolios, the ongoing competitive need to introduce new savings and investment products for end customers, or the client’s demand for innovative solutions. Explore some selected cases to see the benefits for our clients. 
Challenge

How to transfer the risk of a complex, multi-billion GBP in-force variable annuity portfolio within a few months?

Solution

Quota share reinsurance of guaranteed benefit riders transferring all financial and behavioural risks from our client.

Client’s Benefit

Transferred risks have been completely mitigated with full relief of associated SCRs and mitigation of counterparty risks due to collateralisation arrangements and Munich Re’s strong financial strength rating. 

Challenge

How to deliver a 100% principal guarantee on a unit-linked savings product in the JPY environment of persistently low interest rates?

Solution

Variable annuity product capturing JPY foreign exchange carry economics for the benefit of customers.

Client’s Benefits

Complex foreign exchange relationships are handled neatly in a an easy to manage integrated solution providing both investment funds for clients and reinsured guarantees, all produced seamlessly by Munich Re.

Challenge

How to replace a principal guaranteed equity fund that had been sold to customers and was now being closed down by the fund manager after becoming cash locked?

Solution

Provision of a reinsured guarantee on a new fund set up by the client to deliver performance and security to customers.

Client’s Benefit

Client business model had not previously involved the direct provision of guarantees to customers beyond performance promises within third party managed funds. The reinsurance allowed the client to offer a direct guarantee on fund performance from the insurer for the first time, with the risk fully reinsured to Munich Re.

Advantages of working with Munich Re

Operational scale
of a platform managing approximately 32bn EUR equivalent notional*
Financial strength
underpinned by approximately 42bn own funds and a 237% Solvency II capital ratio**
Local relevance
with on the ground specialists for multiple markets across 5 continents**
Funding capacity
from 288bn EUR balance sheet with efficient liquidity costs**
* as of May 2020
** as of 31 December 2019

Who we are

Munich Re Markets began commercial operations with its first transaction in 2008. Since then, we have built a fully operational financial markets risk hedging platform and created solutions for our clients around the globe. We are headquartered in Munich and have local presences in many financial centres, amongst others in London, Zurich, Paris, Hong Kong, Singapore, Tokyo, Sydney, New York, and São Paulo.

We are an interdisciplinary team comprising actuaries, traders, structurers, quants, risk managers, data specialists, accountants, lawyers and other financial market professionals.

Our team and organizational culture is honest, commercial, and entrepreneurial, and we bring our clients the benefit of Munich Re’s financial strength and reputation.

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Contacts

Regional
Hugo Choi
Head of Origination Asia Munich Re Markets
Gerrit Heine
Head of Origination DACH, Scandinavia, CEE Munich Re Markets
Mark Retik
Head of Origination North America Munich Re Markets
Darryl Stewart
Head of Origination Southern Europe, New Markets & Acquisition Situations Munich Re Markets
Stéphane Vanadia
Head of Origination France and BeNeLux Munich Re Markets
Global
Stephan Reulein
Global Head Munich Re Markets
Michael Ege
Michael Ege
Head of Trading, Modelling and Technology Munich Re Markets

Our solutions