Munich Re unveils plans to divest Australian insurance unit

Munich Re has revealed plans to refocus on reinsurance in Australia and New Zealand by divesting its primary insurance arm Great Lakes Australia (GLA).

The reinsurer said that following a strategic review, it came to the conclusion that the capabilities of GLA might be better realised with a change in ownership.

GLA is the Australian branch of Great Lakes Reinsurance (UK) SE (Great Lakes) and operates as a specialist insurer within Munich Re.

“Munich Re’s growth ambition and positioning for the specialty niche business in Australia and New Zealand could not be achieved by GLA over the past several years. To be successful in the competitive and consolidated Australian market environment, a critical size is indispensable,” said Munich Re.