What’s happening with German reinsurer Gerling Global, which has taken some severe hits lately and is now on the “critical” list? The company was absent from last week’s annual reinsurance get-together in Baden-Baden, prompting speculation that it may not write new business next year and may put existing business into run-off.

The company took a severe hit when its US reinsurance business posted big losses and was placed into run-off in August. Since then it has effectively been on the market, but no one seems prepared to buy it. “Gerling’s reinsurance clients are mainly solid, so maybe the reinsurers are waiting around to pick up the business without having to pick up the company,” a Europe-based broker told Sunrise Exchange News.

Some sources have warned that the company, which has built success around heavy industry cover, would impact on insurers’ bottom lines if it collapses, and could push international reinsurance rates up even higher if capacity is affected. One source said Gerling normally sends a significant number of executives to Baden-Baden, but this year none were sent “because they had nothing to tell the market”.

Last month French reinsurer Scor pulled out of takeover talks, and other possible rescuers like Hannover Re have made it plain they want to cherry-pick the best business and leave the rest.

The key player in the Gerling Re drama is Deutsche Bank, which has a 34.5% stake in the Gerling group and an apparent burning desire to get out. The same goes for the other owner, Rolf Gerling, the founder’s grandson.