Yemisi Izuora
Munich Re has announced a new division called Global Specialty Insurance (GSI) which will consist of several of the group’s primary insurance businesses that are currently part of the reinsurance segment.
The restructuring, effective January 1, 2023, will not affect ERGO, the company’s primary insurance division.
GSI will be led by 57 year old Michael Kerner, who was recently appointed to the Board of Directors.
Munich Re said the aim of the restructuring is to continue to support “the very good operating performance” of its primary insurance business, while encouraging further expansion in specialty primary insurance businesses.
The new GSI division primarily includes risk solutions businesses such as American Modern Insurance Group (AMIG), HSB, Munich Re Specialty Insurance, Munich Re Syndicate and Aerospace, as well as Great Lakes Insurance (GLISE).
Over the course of the integration, premium volume is expected to increase from approximately €7.5 billion ($8 billion) today to nearly €10 billion ($10.6 billion) by 2025, in line with the “Ambition 2025” strategy from the company. (With Ambition 2025, Munich Re aims to generate a high return on equity between 12% and 14% in 2025.)
Kerner, a US citizen, joined Munich Re in December 2018 and was responsible for Munich Re Specialty Insurance in North America. He has over 30 years of experience in the global insurance industry.
