Munich Re buys Bell & Clements Group

Munich Reinsurance Company has acquired the Bell & Clements Group. Both parties have agreed not to disclose the purchase price for this transaction.

Bell & Clements operates primarily as an underwriting manager in the US and the UK and is highly respected in this regard. Established in 1983, it has been writing and managing a growing and profitable book of primary insurance business via an exclusive network of selected agents in both these countries for many years. Bell & Clements handles approximately US$ 300m of business, which it has successfully written and managed on behalf of Munich Re Group companies and other insurers for many years. The lines of business written on behalf of the Munich Re Group are primarily property fire and selective short-tail small commercial packaged business.

Writing insurance business through selected underwriting managers like Bell & Clements via in-house fronting carriers is one of numerous growth opportunities at Munich Re’s disposal as a result of its diversified structure. Georg Daschner, member of Munich Re’s Board of Management says: "The acquisition of Bell & Clements is a first response to Munich Re’s recently announced strategy to achieve bottom-line growth. We are leveraging our combined insurance and reinsurance capabilities in order to exploit broader business possibilities. This is where we achieve substantial synergies."

Munich Re and Bell & Clements have enjoyed a very profitable business relationship for a number of years. An important milestone in this relationship was the joint establishment of Three Lions Underwriting Limited, a Birmingham- and London-based underwriting manager which writes regional UK business on behalf of Munich Re Group companies. The acquisition of Bell & Clements is the next step in this successful strategic relationship and allows the Munich Re Group to:

• fulfil its objective to access a select and well-controlled primary insurance portfolio with strategic, long-term partners;
• combine its financial strength and underwriting capabilities with Bell & Clements’ respected brand, management and technical insurance expertise to create a unique selling proposition for current and future customers;
• secure a book of business with a profitable track record while at the same time providing the operational platform to consolidate and expand this business for Munich Re.

Bell & Clements will continue to operate its business as in the past. This means that, in addition to writing business on behalf of Munich Re Group companies, Bell & Clements will continue to provide a comprehensive service to its clients.

Daschner: "This is a perfect fit. The two organisations have the same business philosophy and a mutual bottom-line approach to underwriting. We have a very high regard for the management and staff of Bell & Clements and are confident that this team will continue to make a significant contribution to the strategic and operating performance of the company and the whole Group in the future."

Münchener Rückversicherungs-Gesellschaft
signed Daschner           signed Dr. Lawrence