Munich Re will disband its Munich Health division, effective Feb. 1.
Munich Health's reinsurance units will be merged with Munich Re's life division, and its primary health insurance business will be transferred to ERGO International AG, a division of ERGO Group AG. The latter will be done in line with the planned strategic reorganization of ERGO International, slated to be presented in the first half of 2017.
Munich Re said the original growth and revenue targets for the Munich Health business, set up in 2008, were not realized overall, "despite a few individual success stories." The company also said the reorganization will generate cost synergies and allow for the reduction in the size of its board of management.
As a result of the changes, Doris Höpke, who had been the management board member responsible for Munich Health, will take on responsibility for the special and financial risks division, later adding human resources in the reinsurance business field at the end of April. She will take over the special and financial risks division from Thomas Blunck, who will be responsible for the life and health reinsurance business and will lead the integration of the divisions.