Munich Re Reduces Stake in Helvetia

Munich Re has reported that a total of 450,000 shares with a market value of about 119 million euros were sold, corresponding to around 5.2% of Helvetia's share capital. Munich Re will therefore realize a gain of some 90 million euros, to be booked in the 2nd quarter of 2010.

Source: Source: Munich Re | Published on April 13, 2010

Munich Re's shareholding in Helvetia goes back to 1988 and most recently totaled 8.16%. The sale is part of Munich Re’s consistent risk-management approach, which proved its worth over the last few years. By selling the shares, Munich Re is reducing the resultant concentration of risk and ensuring a healthy mix in its equity portfolio.

The disposal of these shares does not reflect any change in Munich Re’s assessment of the present or future performance of Helvetia. “Business relations with Helvetia remain unaffected by this step”, stressed Georg Daschner, Board member responsible for Munich Re’s reinsurance business in Switzerland.