Munich Re is already talking to potential buyers of Great Lakes Australia (GLA), its primary insurance arm in Australia and New Zealand.

As revealed by insuranceNEWS.com.au in a Breaking News bulletin on Wednesday, the German reinsurer has decided to sell GLA following a strategic review.

“We are engaging with potential buyers and are determined to execute a transaction as quickly as appropriate,” a spokesman told insuranceNEWS.com.au.

“Until the… intended sale has been executed, GLA will, of course, continue to support its agency partners with the same capacity and service as hitherto.”

GLA employs 74 staff and last year recorded gross written premium (GWP) of $500 million. However, it made an underwriting loss.

Calibre, the rebranded insurance operation of Calliden that Munich Re purchased in 2014, is also to be sold less than a year after launch.

CEO Mike Hooton told insuranceNEWS.com.au Calibre is “a focused, growing and well-performing business”.

“Since we commenced our relationship with GLA in 2012 we have achieved our target GWP growth in every year, while meeting GLA’s underwriting performance expectations,” he said.

“New owners and supporting security will acquire an established and growing business with an expanding distribution network of more than 500 brokers.”

Munich Re says GLA’s growth ambitions have not been achieved and to succeed in the Australian market “a critical size is indispensable”.

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

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

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