The new Munich Re brand
The first decade of the new millennium was a period in which Munich Re repositioned itself, progressing from being a classic reinsurer to become a provider of solutions across the insurance industry’s entire value chain. The range of services offered comprises complex risk solutions, extensive consultancy and services and advice on balance-sheet management. The focus is on tailor-made solutions. The integrated business model consisting of reinsurance, primary insurance and international health insurance is born.
With its new Munich Health Brand, Munich Re is pursuing its objective of making healthcare accessible and affordable throughout the world. The primary insurance group, ERGO, is increasingly using its ERGO umbrella brand for marketing its products. Since September 2009, the reinsurance operations and the Group have both been using the brand name “Munich Re”.
2000 – Munich Re acquires Alte Leipziger Europa
The acquisition of Alte Leipziger Europa Beteiligungsgesellschaft AG of Bad Homburg enables the group to further expand its activities in Central and Eastern Europe.
2000 – ERGO expands internationally
ERGO acquires several subsidiaries in other European countries, including the Gruppo Bayerische (later renamed ERGO Italia) and Alte Leipziger Europa, together with ERGO Hestia in Poland and the ERGO companies in the Baltic states.
2001 – Derivatives used to cover earthquake risk during the World Cup
AXA Colonia und Munich Re devise a new way of covering the earthquake risk in Japan during the 2002 World Cup using derivatives.
2001 – 9/11
At 8.45 a.m. on 11 September, a Boeing 767 carrying 92 passengers and 90,000 litres of kerosene crashes into the World Trade Center’s northern tower. At 9.03 a.m. another plane hits the South Tower. Around 3,000 people are killed, and 150,000 lose their workplace. The insured loss is initially estimated at about US$ 12bn. One year later, the loss estimate has been upped to US$ 40–60bn. With a claims burden of US$ 2.2bn, 9/11 is by far the largest loss in Munich Re’s history.
2002 – Corporate Governance Code
On 6 December, Munich Re’s Board of Management and Supervisory Board publish their first declaration of conformity with the recommendations of the Government Commission for a German Corporate Governance Code.
2002 – The flood
The heaviest flooding in Europe in centuries, possibly even since the millennium floods in August 1342, occurs on the Danube, Elbe Vltava, and their tributaries. It causes economic losses of some €18.5bn throughout Europe, €3bn of which is insured.
2003 – Reinsurance licence granted in China
Munich Re becomes the first international reinsurer to receive a licence to write business throughout China in all classes of reinsurance.
2004 – Nikolaus von Bomhard is appointed Chairman of the Board of Management
A full member of the Board since 2000, Nikolaus von Bomhard becomes CEO with effect from 1 January 2004. Previous Chairman Hans-Jürgen Schinzler moves to the Supervisory Board.
2004 – New subsidiary in India, a growth market
Munich Re establishes Munich Re India Services Ltd. in Mumbai. Especially in life insurance, clients henceforth enjoy an even wider range of dedicated support services at local level.
2004 – ERGO in Asia
In November, DKV participates in the founding of PICC Health, China’s first private health insurer. This is ERGO’s first venture beyond Europe’s borders.
19 April 2005 – 125 years in the risk business
Munich Re celebrates its 125th anniversary and establishes the Munich Re Foundation with its motto “From Knowledge to Action”. Companies with a wealth of knowledge also have a certain responsibility, and acting responsibly means sharing such knowledge. People are ultimately at the core of the Foundation’s work. The Foundation’s task is to minimise the risks that they are exposed to. It provides clarification on important issues and provides support, also in developing countries.
2005 – Hurricane Katrina
With wind speeds of up to 280 km/h and gusts reaching 350 km/h, Katrina sweeps over the Gulf of Mexico at the end of August. Parts of New Orleans are more than seven metres underwater. Hundreds of thousands of people flee, more than a thousand die. Estimates in November 2006 put overall losses at US$ 125bn and insured losses at US$ 60bn. Hurricane Katrina thus becomes the most expensive insurance event of all time. The cost for Munich Re is an estimated US$ 1.6bn.
2006 – Licence for retakaful business
On 19 September, Munich Re becomes the first foreign reinsurer to be granted a licence for life and non-life retakaful business by the Malaysian supervisory authority, Bank Negara of Malaysia.
2006 – Further international expansion for ERGO
ERGO’s expansion includes the acquisition of a majority holding in the Turkish insurer, Isviçre. D.A.S. establishes a subsidiary in Estonia, thereby continuing the success story of its many international ventures in a total of 23 markets.
2006 – Licence for life reinsurance business in Russia
Munich Re Life Reinsurance Eastern Europe/Central Asia (Munich Re Life E.E.C.A.) becomes the first foreign company to be granted a licence to conduct life reinsurance business by the Russian Federal Service for Insurance Supervision.
2007 – ERGO: DKV takes over healthcare in Denia, Spain
DKV Seguros assumes responsibility for all public healthcare services in the Denia area in Spain with effect from 2007.
2008 – Munich Re establishes subsidiary in Brazil
Ten years after the representative office was inaugurated in São Paulo, Munich Re takes advantage of the opening-up of the Brazilian reinsurance market to establish a subsidiary in February 2008. Brazil is by far the largest insurance market in Latin America. Liberalisation of the market coupled with the country’s overall economic development is expected to boost demand for reinsurance solutions in Brazil.
2008 – EUROPÄISCHE and Mercur Assistance now part of ERGO
Europäische Reiseversicherung and Mercur Assistance become part of the ERGO Insurance Group on 1 January 2009. This dovetails with the strategy of placing primary insurance activities under the ERGO banner and further strengthens the Group’s position in the international travel insurance market.
2008 – Munich Re takes an active part in key climate initiatives
Munich Re is one of the first companies to sign up to the Climate Principles, the initiative called into being by the UN Climate Group. The aim of the initiative is to emphasise the important role that financial service providers play in the transition to a low-carbon energy industry.
The signatories declare that they will gear their management, business strategy, products and consulting services more strongly to the demands of climate change. The Munich Climate Insurance Initiative (MCII) succeeds in having insurance solutions for the developing nations put on the agenda of the Intergovernmental Panel on Climate Change.
2009 – Munich Health launched
Munich Re concentrates its international health expertise in primary insurance, reinsurance and risk management in its new business segment, Munich Health. Munich Health’s goal is to use integrated, intelligent solutions tailor-made for local markets to give everyone access to high-quality healthcare worldwide.
2009 – Desert Power Initiative launched for power generated in the desert
Twelve companies sign a Memorandum of Understanding in Munich establishing the Desert Power Initiative planning entity (Dii). The objective of this initiative is to analyse and develop the technical, economic, political, social and ecological framework for carbon-free power generation in the deserts of North Africa. The Desertec concept, developed by the TREC Initiative of the Club of Rome, describes the prospects for a sustainable power supply for all regions of the world with access to the energy potential of deserts. Dii starts work on 30 October.
2009 – Munich Re acquires Hartford Steam Boiler (HSB)
On 1 April, Munich Re acquires specialty insurer HSB Group from US insurer AIG for €555m. This enables the Group to expand its presence in niche segments in the USA and constitutes a key component of its strategy to achieve profitable growth in the world’s most important insurance market.
2009 – The new Munich Re brand
With its new brand, Munich Re reinforces its position in the reinsurance markets, pursuing its holistic approach, which is deeply rooted in the knowledge the Group possesses and delivers individual solutions along the entire value chain.
2010 – ERGO’s new brand strategy
The ERGO brand is to be more present in the markets of the future. From now on, the products of direct insurer KarstadtQuelle Versicherungen are to be marketed under the ERGO brand. During 2010, the Hamburg-Mannheimer and Victoria brands are absorbed into the ERGO brand.
