Munich Re is pursuing new markets such as protection from cyber risk and supply chain interruption, amid fierce competition on its traditional turf.

“There is potential for growth not only from a geographical perspective, as in the booming regions of Asia,” the German reinsurer says. “Munich Re is also working on pushing back the limits of insurability of risks not yet, or not yet adequately, covered in the market.”

These include cyber risk, energy, supply chain and business interruption, and protection of reputation.

Munich Re expects capital and reinsurance markets to remain tough this year, and is prepared to forgo some business to protect its bottom line.

“Rigorous cycle management and underwriting discipline, and excellent client service, will therefore still be extremely important,” CEO Nikolaus von Bomhard said.

“This requires great determination… to let go of even substantial levels of business where it is no longer possible to maintain adequate prices.”

Munich Re has announced another share buyback program worth €1 billion ($1.38 billion), representing 3.1% of its share capital. It expects to complete this by April 27 next year.

“The buyback is conditional on no major upheavals occurring in the capital markets or in the underwriting business,” Munich Re says.

This year the group is aiming for net profit of €2.5-€3 billion ($3.45-$4.14 billion). Net profit last year was €3.2 billion ($4.42 billion).

Mr von Bomhard says Munich Re wants to diversify its investments and is looking to other asset classes such as infrastructure.