Munich Re CEO denies sale of asset management unit

Munich Re wants to strengthen its asset management unit, perhaps through cooperating with partners, the company’s chief said in an internal memo, according to a Reuters report.

The internal memo by CEO Joachim Wenning comes amid reports that the German reinsurer is in talks with a US fund manager to sell Munich Ergo Asset Management (MEAG).

“Investment will remain an integral part of the value chain in primary insurance and reinsurance in the future,” Wenning wrote in the note seen by Reuters.

“Therefore, it would make no sense at all for us to withdraw from investment activities. On the contrary, it is in our strategic interest to continually develop and strengthen our asset management.”

Wenning said in the memo that one possible way to strategically strengthen the investment activities was to work together with partners, citing “very positive experiences” with digital partnerships in reinsurance and with Munich Re’s primary insurance unit Ergo.

MEAG has €250 billion ($290.75 billion) in assets under management.