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Daily Insurance Industry News
Tuesday 21st of November 2017
May 1, 2009

Munich Re reduces stake in Admiral

by David Masters

Story link: Munich Re reduces stake in Admiral

Munich Re reduces stake in Admiral

Munich Re has cut its stake in UK-based motor insurer Admiral by almost a third.

The Germany-based reinsurer reduced its holding from 15.1% to 10.22%, raising around €107m.

Munich Re said the sale was made to ensure an appropriate mix of risk in its equity portfolio.

The relationship between the two firms will be unaffected,
and the “ongoing successful co-operation” will continue, Munich Re said.

“The close business relationship with Admiral remains wholly unaffected by the transaction which in no way reflects Munich Re’s assessment of Admiral’s current or future performance,” it added.

“This sale is a consequence of Munich Re’s consistent risk management approach, which proved its worth in the massive capital-market upheavals last year.

“By selling the shares, Munich Re is reducing the resultant concentration of values and ensuring an appropriate mix in its equity portfolio.”

An analyst questioned by Reuters speculated that Munich Re is taking opportunistic advantage of Admiral’s recent share price surge.

 

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