Are your products exposed to financial markets?
We are eager to solve your risk and investment management challenges by combining financial market techniques and advanced reinsurance concepts.
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What we offer
Munich Re Markets reinsures savings and investment products. We provide you with the payouts required to meet your customer obligations, regardless of how markets develop.
Our services allow you to compete with new product innovation in your market and effectively manage your risk and capital profile of your portfolios.
Existing portfolio risk management
We manage and reinsure the risks of your existing savings and investment products. Typical use cases include:
- M&A driven changes in portfolio composition
- Regulatory changes in product treatment
- Excessive risk exposure on an existing product portfolio
New business development
We support the design and roll out of new savings and investment products to your chosen markets. Typical use cases include:
- Reinsurance of financial guarantees to policyholders
- Delivery of investment strategies for unit- and index-linked products
- Provision of benefit illustration tools and digital front-ends to support traditional and online distribution
Next to reinsurance, we collaborate with Munich Re Investment Partners to develop investment fund solutions specifically suited to clients from the global life and pension industry. This enables Munich Re Markets to operate as a one-stop-shop for savings and retirement products.
Financing needs
We provide capital financing against both open and closed product portfolios to support strategic capital management projects. Typical use cases include:
- M&A acquisition financing against future portfolio profits
- Commission financing for open product lines
- Intra-group capital management such as subsidiary dividend financing
Pension risk solutions
We offer solutions focusing on transfer of capital market risks and biometric risks embedded in pension commitments. Typical applications are:
- Optimisation of relevant balance sheet KPIs in a rating and M&A context
- Setting up of new pension commitments and congruent cover of the embedded liabilities
- Outsourcing of existing pension liabilities via a pension buy-out
Our solutions can be delivered either in reinsurance or insurance format ensuring a high compatibility with the client’s entity legal form.
What we have done
European closed block acquisition support
Challenge
How to transfer the risk of a complex, multi-billion GBP in-force variable annuity portfolio within a few months?
Solution
Quota share reinsurance of guaranteed benefit riders transferring all financial and behavioural risks from our client.
Client’s Benefit
Transferred risks have been completely mitigated with full relief of associated SCRs and mitigation of counterparty risks due to collateralisation arrangements and Munich Re’s strong financial strength rating.
Japanese new product launch
Challenge
How to deliver a 100% principal guarantee on a unit-linked savings product in the JPY environment of persistently low interest rates?
Solution
Variable annuity product capturing JPY foreign exchange carry economics for the benefit of customers.
Client’s Benefits
Complex foreign exchange relationships are handled neatly in a an easy to manage integrated solution providing both investment funds for clients and reinsured guarantees, all produced seamlessly by Munich Re.
European existing product restructuring support
Challenge
How to replace a principal guaranteed equity fund that had been sold to customers and was now being closed down by the fund manager after becoming cash locked?
Solution
Provision of a reinsured guarantee on a new fund set up by the client to deliver performance and security to customers.
Client’s Benefit
Client business model had not previously involved the direct provision of guarantees to customers beyond performance promises within third party managed funds. The reinsurance allowed the client to offer a direct guarantee on fund performance from the insurer for the first time, with the risk fully reinsured to Munich Re.
New pension scheme for a DAX40 company
Challenge
How to deliver a congruent cover for the liabilities embedded in new pension scheme.
Solution
Provision of an individual, flexible and efficient risk transfer concept developed in cooperation with the client.
Client benefit
Elimination of future reserve top-ups and balance sheet volatility due to 100% risk transfer, as well as active participation in the solution design.
Advantages of working with Munich Re
** as of 31 December 2019
Who we are
Munich Re Markets began commercial operations with its first transaction in 2008. Since then, we have built a fully operational financial markets risk hedging platform and created solutions for our clients around the globe. We are headquartered in Munich and have local presences in many financial centres, amongst others in London, Zurich, Paris, Hong Kong, Singapore, Tokyo, Sydney, and New York.
We are an interdisciplinary team comprising actuaries, traders, structurers, quants, risk managers, data specialists, accountants, lawyers and other financial market professionals.
Our team and organizational culture is honest, commercial, and entrepreneurial, and we bring our clients the benefit of Munich Re’s financial strength and reputation.
Contacts
Regional
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Global
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Our solutions for financial market risks
