Gerling exits reinsurance business

Gerling Group announced today it would exit the reinsurance business altogether, spinning off its operations to an investor group headed by Dr. Achim Kann.The life reinsurance arm will become a subsidiary and be sold off, while a Gerling press releases states that “Kann will strengthen the substance of non-life reinsurance business by concluding commutation agreements”.Gerling intends to focus on its primary insurance business, including industrial property and casualty, credit insurance and company pensions.The transfer is expected to take place at the end of the year, subject to regulatory approval.Reuters is predicting the spin-off could net Gerling EUR 200 million and says that Kann’s role will be to wind-up the non-life reinsurance operation.Kann has been chair of the board for Frankona Re.The question remains if there are any potential buyers for any part of Gerling’s reinsurance business. Talks with SCOR failed this fall, although Hannover Re is speculated to be a buyer for some of Gerling’s business.