The Hindu Business Line : Munich Re Group for branch office

Hyderabad, Sept. 18 Munich Re Group, one of the world’s largest re-insurers, is firming up plans to set up an Indian branch office to offer its full range of products.

The Munich-headquartered German company, with a premium income of approximately €37 billion and investment of around €177 billion in 2006, is optimistic of establishing base in early 2008.

Dr Ludger Arnoldussen, Member of the board of Munich Re Group, told Business Line here that they have got indications from the Insurance Regulatory and Development Authority (IRDA) that the branch office was the best way to enter the reinsurance business in the country.

In the Indian context, however, the Government needs to bring in necessary legislation to allow international re-insurers to operate in the country. Mr Arnoldussen said: “We are optimistic that the necessary legislation would be in place soon”.

Dr Arnoldussen, Mr Stephan Lammle and Mr Sanjib Chaudhuri, India representative based in Kolkata, were in Hyderabad interacting with the IRDA top brass. They would be meeting officials of the Ministry of Finance in New Delhi in the next few days to discuss the reinsurance business.

Munich Re has branch offices in Beijing (40 staff), Sydney (110), Singapore (70), with mostly underwriters. The offices are linked to the headquarters in Munich, which will extend all the expertise required as back-up. The company is not considering asset management foray in India, he added.

Stating that India was among the top three markets (China, India, West Asia) in Asia for Munich Re Group, Dr Arnoldussen said the company offers the full range of products—from traditional reinsurance to alternative risk financing.

Among other things, “we reinsure the risks of oil rigs, satellites and natural calamities such as earthquakes, floods and those arising from the use of genetic engineering and information technology. A strong geoscience team in Munich has been established for the purpose,” he said.

Munich Re Group, which is also a major player in the primary insurance market is also exploring entry into the life and non-life insurance areas through a joint venture. “At present, discussions are on with potential players,” he said.