Munich Re says investors favour catastrophe bonds

TOKYO, Sept 29 (Reuters) - Germany's Munich Re (MUVGn.DE) said on Monday its financial products designed to cover natural disasters are popular during the biggest financial disaster since the 1929 Wall Street Crash.

Global financial turmoil triggered by the subprime mortgage crisis ha not damaged demand for catastrophe bonds, said Nikolaus von Bomhard, chairman of Munich Re's board of management, as their risk is not correlated to that of other securitised products.

"The risk is still quite welcomed by asset managers," Bomhard told a news conference, adding that the company has recently securitised earthquake insurance risks in Japan.

Munich Re, the world's biggest reinsurance company, briefed in Tokyo on its strategy on new markets, including covers for renewable energies and covers on planned delivery of carbon credits from green projects in developing countries.

Although no data is available for the climate business alone, top-line insurance premiums from catastrophe businesses, except for those of earthquake, roughly take a 10 percent share of the total, Bomhard said.

Asked about the impact of recent financial turmoil following the rescue of troubled U.S. insurer American International Group (AIG.N) (AIG.N), he said it would provide opportunities.

"We're among the most conservatively invested companies. Therefore, we're little affected," he said, adding that some impact was felt given the company's huge size of assets under management of 165 million Euros ($239 million).

He told Reuters at the sidelines of the news conference that Munich Re is interested in buying Asian and Eastern European assets of AIG's, depending on on the price.

Asked if the company is interested in AIG's reinsurance business, Transatlantic Re, Bomhard said: "No, not at all." ($1=.6897 Euro) (Reporting by Risa Maeda; Editing by Louise Heavens)