Munich Re plans to sell its Australia and New Zealand primary insurance operation, Great Lakes Australia (GLA), following a strategic review.

GLA was registered in 2007.

But the reinsurer told insuranceNEWS.com.au that growth ambitions had not been achieved.

“To be successful in the competitive and consolidated Australian market environment, a critical size is indispensable,” a spokesman said.

“Munich Re has come to the conclusion that the capabilities of GLA might be better realised with a change in ownership.

“Therefore, Munich Re will pursue a divestment of its primary insurance arm in Australia and New Zealand.”

GLA boasts gross written premium of around $500 million.

It provides the security for Calibre Insurance, which is also to be sold less than a year after launch.

Munich Re purchased the insurance operations of Calliden in 2014, and the rebranded Calibre operation was introduced last November.

The German reinsurer insists it is still committed to the local market, but there will now be a clear focus on reinsurance.

“The company will continue to be a strong partner in property and casualty as well as in life reinsurance business,” the spokesman said.

“The change announced today allows Munich Re in Australia and New Zealand to refocus on where it can provide the best value to the market and its reinsurance clients.”

More details in our regular bulletin on Monday.