Munich Re America (MRA) has received Federal Court approval to transfer its Australian direct insurance contracts to Great Lakes Re in Sydney.

Munich Re company secretary Neale Campbell told insuranceNEWS.com.au the American business is in run-off and the settlement of claims will proceed as normal.

“When Munich Re bought the American business it was decided to close down the overseas operations,” he said. “Australia was the second-to-last overseas operation to be closed.”

Mr Campbell says there are no active policies left in the MRA business. 

MRA is paying Great Lakes $26.9 million to cover claims that are under way and Great Lakes is indemnifying MRA for all future claims.