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Munich targets assets at AIG
Bill Condie, Evening Standard2 Oct 2008
Reinsurance giant Munich Re is eyeing American International Group (AIG) assets, chief executive Nikolaus von Bomhard says.
Talks between the two are yet to begin, Von Bomhard said, but he has never made a secret of his aim to expand Munich Re's primary insurance operations.
Von Bomhard said that eastern Europe and Asia were his primary targets for growth.
AIG was rescued by the US government after being crippled by mortgage-related losses. In exchange for an $85 billion (£47.86 billion) loan, Washington will take an 80% stake in the company.
AIG's chief executive Edward Liddy intends to sell down assets to repay the loan before the two-year deadline.
"We consider this crisis rather a chance," Von Bomhard said. "We have the means in place to do some M&A activities."
