Munich Re’s group CFO Christoph Jurecka revealed this morning that the reinsurance company is already expecting to feel a positive effect from its investment joint-venture with rival Hannover Re, as soon as during the fourth-quarter.
At that time, the Hannover Re leadership said that the pair of reinsurers were still awaiting regulatory approvals for an alternative investment joint-venture.
It now seems, based on comments made by Munich Re’s leadership, that the process to initiate this alternative investment partnership are now well-underway.
Recall, the JV between Munich Re and Hannover Re is being put together to help the pair increase the diversification of a combined private equity portfolio, which they also believe can lead to better terms and conditions on making new investments as well.
Private equity is expected to be the main focus, as the pair of reinsurers look to benefit from economies of scale and also from diversification through the larger portfolio they can allocate to, through the partnership.
Today, in reporting its third-quarter and nine month results, Munich Re said that it is anticipating some positive one-off effects to come through during Q4.
During an analyst call just now, CFO Christoph Jurecka explained that part of this is expected to be from the investment joint-venture with Hannover Re.
“The one transaction I can mention, because it’s public knowledge anyway, is the planned joint-venture with Hannover Re, on the alternatives and private equity side,” Jurecka said.
Adding, “That will have a positive impact for us in the fourth quarter.”
So it appears the joint-venture is close to getting underway, resulting in the potential for some investment-side benefits to be realised as soon as the fourth-quarter of 2022.
