Munich Re interested in AIG Asia life operations
HONG KONG (Reuters) - Munich Re (MUVGn.DE), the world's biggest reinsurer, said on Tuesday that its direct insurance arm is looking to enter new markets in Asia and that it is interested in parts of American International Group's (AIG.N) Asian life insurance business.
Insurers around the world including China Life Insurance (2628.HK)(LFC.N) covet assets that the embattled U.S. giant AIG is selling after it took a $152 billion government bailout to avoid collapse resulting from its exposure to risky mortgage assets.
AIG's sprawling Asian operations are seen as especially attractive.
"We are looking at AIG life operations in the Asia region," Ludger Arnoldussen, a member of the management board of Munich Re, told reporters in Hong Kong.
He declined to elaborate other than to say that Munich Re's primary insurance unit, ERGO, was looking to expand in strong emerging Asian markets such as China and South Korea.
ERGO's Asian operations are currently limited to India and South Korea.
In China, ERGO was looking at life insurance joint venture opportunities, he said.
"We think the Chinese market is interesting for the primary insurance group, ERGO, so they are looking at opportunities there," Arnoldussen said.
He also reiterated the group's expectation that global reinsurance rates would increase by double-digit levels for January renewals as the financial crisis boosts demand.
(Reporting by Tony Munroe; Editing by Nick Macfie)
