Munich Re closes subsidiary in Moscow
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.
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