Munich Re plan Asian expansion through AIG
by David Masters
Story link: Munich Re plan Asian expansion through AIG
Germany-based Munich Re, the world’s largest reinsurer, has expressed interest in buying the Asian life insurance operations of crippled US insurance giant American International Group (AIG).
Munich Re revealed yesterday that it is seeking to enter new markets in Asia, and admitted that acquiring AIG’s Asian operations would be an effective way of achieving this goal.
AIG is selling off many of its assets to pay off a $152 billion emergency loan given by the US government to save the company from collapsing amidst the sub-prime mortgage crisis.
Munich Re’s admission that they may bid for AIG’s Asian units comes just days after Chinese investors expressed interest in the businesses.
China Life Insurance is considering a bid for AIG’s Asian units, but Chinese insurance regulators have said that offers from a China-based company are ‘unlikely’.
Munich Re’s interest in AIG’s Asian life business is not universal, and it seems likely that the company would only seek to buy certain sections of AIG’s operations.
Ludger Arnoldussen, a member of Munich Re’s management board, said the company would only bid for parts of AIG that ‘fit exactly’ into long term expansion plans.