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Munich Re gets operating license in China
( 2003-07-11 11:20) (Agencies)

The world's biggest reinsurance company, Munich Re, said Thursday it has become the first international reinsurer to receive a nationwide operating license in China.

Munich Re, which has had business connections with China since 1956, said it will now be able to participate in reinsurance business denominated in the Chinese yuan, which previously was reserved for local companies.

"At an annual double-digit growth rate, the Chinese insurance market is an integral part of one of the most dynamic and promising economies in the world," the company said in a statement. "Munich Re will now be in a perfect position to benefit from its long-standing network of strategic relationships with the Chinese insurance industry by cooperating in all life, health and non-life business lines."

Reinsurance companies sell backup coverage to other insurers, spreading risk so the system can handle huge losses from major disasters.

Munich Re has offices in Beijing, Shanghai and Hong Kong.

 
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