International reinsurance giant Munich Re has agreed to sell its Karlsruher insurance subsidiary to German financial services group Wurttembergische Leben for a sum believed to amount to a E130 million profit.
As part of the purchase deal for the Karlsruher Insurance Group, Munich Re will also sell its 90%-plus stake in Karlsruher Leben to Wurttembergische.
Both sides had agreed to maintain silence regarding the purchase price, however Reuters has quoted a Munich Re official saying that the reinsure would book a net income of E130 million, equivalent to $158.1 million, in the fourth quarter.
In explaining its decision to sell to Wurttembergische Leben, Munich Re said the aim was to find a future-oriented solution for all parties concerned. The new partnership between Wurttembergische and Karlsruher Leben instantly produces a combined entity in Germany’s top ten insurers both in life and in the property-casualty business.