Stabilising economic conditions have allowed reinsurance giant Munich Re to resume its suspended share buy-back program with a €1 billion ($1.7 billion) offer.

The reinsurer will run the buy-back until May after suspending the program for seven months during the global downturn.

Chairman Nikolaus von Bomhard says the company no longer requires the extra capital.

“We are still well equipped, even if there should be a setback in the economic recovery,” he said.

Based on the current share price the offer would extend to nearly 5% of Munich Re share capital.

Since November 2006 the reinsurer has carried out share buy-backs worth a total of €4 billion ($6.7 billion).