FRANKFURT, April 12 The current low interest
rate environment, a slump in prices and tighter regulation could
lead to consolidation among smaller reinsurance companies, the
finance director of Munich Re, the world's biggest
reinsurer, told a German daily.
"The pressure to merge tends to be rising," Joerg Schneider
said in an interview published on Saturday by Boersen-Zeitung.
"Perhaps there will be pressure to consolidate among the
smaller companies," he said. "But among the larger re-insurers I
do not expect mergers because these could entail a significant
business loss," he added.
The pricing pressure in the reinsurance industry is a
temporary development and demand will increase again markedly in
the medium-term, he said, without being more specific about
Touching on developments in the first quarter, Schneider
said Munich Re had seen lower claims burdens from major losses,
"something which will have a positive impact" on financial
(Reporting by Marilyn Gerlach; Editing by Pravin Char)