German Munich Re buys US insurer Midland for $1.3 billion

0 Comments | AFP, October, 2007

FRANKFURT (AFP) — Munich Re, the second biggest reinsurer in the world, said Wednesday it had bought US insurance company Midland for around 1.3 billion dollars (900 million euros), or 65 dollars per share.

The acquisition should be completed by the second quarter of 2008 and was part of a stategic realignment of the German group's US business, it added.

"Establishing and building on a leading position in niche segments of the US primary insurance market is a significant aspect of our strategy for the USA," a statement quoted board member Peter Roeder as saying.

"The specialised business model of insurers like Midland helps us to mitigate the volatility of our traditional reinsurance business," he added.

The focus of Midland's operations is on niche...