Munich Re played down the threat to its reinsurance portfolio from insurance investors like pension funds, saying it expected a stable outcome when it renews contracts with its insurance company clients in the coming months.
The world's biggest reinsurer on Sunday said it was seeing increasing price competition from institutional investors, who are buying into the securitisation of insurance risks such as hurricane damage in the United States, in direct competition with traditional reinsurers like Munich Re.
These investors pumped around $44 billion into the lucrative market for natural catastrophe risk cover last year, representing about 17 percent of worldwide reinsurance capacity for those risks.
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