Munich Re restructures health business; reduces management board

Munich Re has reorganised its health business after disappointing performance and reduced the size of its management board. The changes will take effect starting February.

Doris Höpke, the board member with responsibility for Munich Health, will take over the responsibility of special and financial risks division. Munich Health will be merged with Munich Re’s life division, and the primary health insurance business will be transferred to ERGO International, its primary insurance subsidiary.

The company said that reorganisation also means a reduction in the size of management board.

Höpke will also assume the global responsibility for human resources in the reinsurance business, including the function of labour relations director, at the end of April.

Board member Thomas Blunck will be given the responsibility for life and health reinsurance business. In addition, he will drive the development of Digital Partners, Capital Partners and Reinsurance Investments.

The company said that "despite a few individual success stories, the original growth and revenue targets for the Munich Health field of business have not been realised overall."

Nikolaus von Bomhard, chairman of the board of management, commented: "The high-growth health market – boosted by increasing prosperity, demographic change and medical advances – will remain important for us even after the reorganisation. Our strategic ambition and expected returns from health business will not change."

Höpke said: “The special and financial risks division (SFR) is heavily involved with topics that offer great reinsurance opportunities – whether in terms of cyber coverage, or innovative insurance products for industrial and major clients. These important future issues are actively explored by SFR and allow us to provide impetus for the whole industry."

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