In a move it describes as reducing
its portfolio risk, Munich Re has reduced its stake in Swiss
composite insurer Helvetia from 8.2% to under 3%. The reduction
involved the sale of Helvetia shares worth €119m ($160m) on which
the German insurer and reinsurer said it realised a gain of about
€90m.
Munich Re, which has had an
association with Helvetia since 1988, emphasised that the reduction
of its stake does not reflect any change in its assessment of the
present or future performance of Helvetia.
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“Business relations with Helvetia
remain unaffected by this step”, stressed Georg Daschner, board
member responsible for Munich Re’s reinsurance business in
Switzerland.
Helvetia reported a net profit of CHF320.5m ($300m) in 2009, up
40% compared with 2008. Gross premium income and deposits in 2009
totalled CHF6.06bn, of which life insurance contributed
CHF4.09bn.
