Reinsurers could increase European nat cat capacity, Munich Re’s Blunck says

By Rebecca Delaney Oct 15 (The Insurer) — Munich Re is willing to deploy more capacity for European natural catastrophe risks to diversify its portfolio, provided pricing remains adequate in a buyer-friendly market, board member Thomas Blunck said on Thursday. Speaking at a media briefing ahead of the Baden-Baden Reinsurance Meeting, Blunck said Munich Re increased the cat excess-of-loss limits offered to European cedants by 41% between 2021 and 2025. “I think all of you know that Munich Re is rather stubborn. We like the natural catastrophe business. We are convinced, and we have shown, it can be managed over the cycle profitably and in a diversified portfolio,” said Blunck. He said European exposures made up a smaller proportion of Munich Re’s nat cat portfolio than North America, Japan and Australia, providing room for further capacity deployment across the continent. “As an industry, and as Munich Re, we have more limits and capacities that we can provide to the European market,” Blunck said, adding that it would “increase the diversification of our portfolio, improve the diversification and make our capital more efficient”. Blunck said the market was at the halfway point betwe