It has been a player before, but now Munich Re is moving into the alternative risk transfer (ART) market in a big way. It will spin off its own ART unit with that of American Re to form, Munich-American Capital Markets (MACM). The new company will be based in New York.

The company said in a statement that the move is a response to growing demand for structured reinsurance and capital market solutions.

The company, the world’s largest reinsurer, has also announced record earnings in the first quarter, helped by asset sales and price increases following the September 11 attacks.

Net income rose to $7.4 billion from $1324 million a year earlier.