November 8, 2017 / 2:05 PM / 2 years ago

Munich Re receives offers for run-off life portfolio

MUNICH, Nov 8 (Reuters) - German reinsurer Munich Re’s Ergo unit has received non-binding bids for its traditional life insurance business, which have ceased underwriting new contracts, it said on Wednesday.

The company will decide at earliest in late November if it will enter into concrete talks on a potential sale of its so-called run-off portfolio, a company spokesman said.

Ergo’s run-off life portfolio has 6 million customers and assets of 56 billion euros ($64.91 billion).

Reuters reported in September that the company is considering a sale instead of the original intention to carry out the run-off itself.

Ergo and fellow insurers are struggling to pay guaranteed returns to clients because of record-low interest rates. Combined with more stringent European capital rules, these have prompted some to offload life insurance operations. ($1 = 0.8627 euros) (Reporting by Alexander Hübner; Writing by Arno Schuetze; Editing by Tom Sims)

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