Krailling

Don't Overpay for Insurance M&A

I suggest you look at the original presentation done by Munich Re when the merger was announced, avalaible at munichre.com. The lines between reinsurance and insurance are increasingly becoming blurred, so this is the type of M&A your bound to see more of in the future. As a specialty insurer with limited capital and client base, Midland needed Munich Re's financial clout and global experise and industry leadership to take its growth strategy to the next level. Munich Re needed a trusted partner with a stellar reputation to fuel business growth in U.S. niche markets outside of the traditional reinsurance spectrum (because anyone in the reinsurance business will tell you that profitable grow opportunities in pure reinsurance are limited). So contrary to your assertion, the merger makes a look of sense for both Munich Re and Midland.