Reinsurance thrives in turmoil

Demand for reinsurance products has surged as a result of the financial crisis, Munich Re has claimed. "We are certainly seeing a trend where insurance companies are looking to shift risk away from their books as they simply don't have the capital strength to support high-risk exposure," said Ludger Arnoldussen, of the Munich Re board of management. Arnoldussen added that, although it did not expect to fully escape the wider effects of the financial crisis, as of 30 September 2008 the firm's assets totalled EUR21.5bn - the same level as the first half, despite the market turmoil.