Reinsurance Industry

A New CEO for a New Era

  • Why it matters

    Why it matters

    Munich Re needs to take risks and make big decisions to stay viable. Cutting struggling subsidiary Ergo could be an option.

  • Facts

    Facts

    • Munich Re generated a healthy revenue of €21 billion ($22.45 billion) from 2009 to 2016, but profits have fallen for the third year in a row.
    • New competition comes in the form of pensions and hedge funds offering their own reinsurance.
    • The company has put up a billion euros to restructure its struggling subsidiary Ergo.
  • Audio

    Audio

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Munich Re Hauptversammlung 2016
Munich Re's incoming chief executive Joachim Wenning will have much on his plate. Source: DPA

There are no signs of a crisis. The figures presented by Jörg Schneider, chief financial officer of the world’s biggest reinsurance company Munich Re, look pretty good at first glance. Profits well above his own forecasts, a higher dividend than the previous year – it wasn’t hard to see Munich Re’s 58-year-old numbers man was satisfied at the early figures of the insurance giant.

And yet even Mr. Schneider’s soft voice couldn’t hide the fact that the Munich-based company has seen better years. The company’s profits have decreased more than analysts expected and outgoing Chief Executive Nikolaus von Bomhard is leaving Munich Re with modest figures after more than 12 years at the helm.

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