Munich Re has sold a part of its stake in Helvetia Holding, St Gallen. The shareholding has been reduced from approximately 8.2% to under 3%. By selling off this interest, the company has now lowered concentration risks in its portfolio.
According to company, a total of 450,000 shares with a market value of around EUR119m were sold which corresponds to around 5.2% of Helvetia’s share capital. The company is thus realising a gain of some EUR90m, to be booked in the 2nd quarter of 2010.
Munich Re’s shareholding in Helvetia goes back to 1988 and most recently totalled 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.
Georg Daschner, board member responsible for Munich Re’s reinsurance business in Switzerland, said: “Business relations with Helvetia remain unaffected by this step.”
Munich Re is a reinsurance company headquartered in Munich, Germany. The company, in international healthcare business, pools its insurance and reinsurance operations, and also related services, under the Munich Health brand.