GREENBRIER, W.Va.--Munich Reinsurance Co. on Tuesday announced a long-term strategy to increase direct and broker-placed reinsurance as well as primary insurance in the U.S. property/casualty market.
Leaders of the Germany-based company plan to develop closer broker relationships and build a presence in niche primary insurance segments, the company said in a teleconference.
This will help the company achieve full potential and achieve sustainable, profitable growth in the U.S. P/C reinsurance market, Munich Re leaders said.
Starting in January, Princeton, N.J.-based Munich Re America will have new structure and management aligned by client type to support its strategy, the company said. Anthony J. Kuczinski, who will succeed John Phelan as chief executive officer of Munich Re America in January, said the new structure will better serve clients and create partnership-oriented business development.
"It's a large and mature marketplace and our competitors are getting more sophisticated and our clients are more demanding," Mr. Kuczinski said in a Tuesday teleconference. "This (strategy) better positions us to reach client needs and provide improved responsiveness to the marketplace."
The timing of the restructuring, according to Munich Re board member Torsten Jeworrek, is to have Munich Re "prepared to take advantage of the market when the time comes," acknowledging that it is currently a soft market.
"This strategy will take advantage of the full strengths of the Munich Re Group," Mr. Jeworrek said. "It will allow us to expand U.S. business in the U.S. broker market with U.S. brokers."
Changes to the Munich Re America structure include:
All other appointments will be effective in January.
Each member of the management team will report to Mr. Kuczinski.
"Our long-term success will hinge on how well we deliver value-adding products and services to meet our clients' needs," Mr. Kuczinski said in a statement. "We will work in cooperation with clients and brokers to find a way to service their business."