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Article: Reinsurers seek to grow through diversification efforts; Niche business lines seen as means to fight softness elsewhere.(Spotlight: Reinsurance: Trends & Issues)
- Article from:
- Business Insurance
- Article date:
- October 29, 2007
- Author:
CopyrightCOPYRIGHT 2007 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: JUDY GREENWALD
Reinsurers are continuing efforts to diversify and are doing so in various ways, observers say.
They are expanding geographically, offering new product lines and distribution channels, and entering the primary market. Another diversification route is merger and acquisition activity (see story, page 24).
Some observers, though, say reinsurers would be better off sticking with the business they know best.
Among diversification efforts, Munich Re Group earlier this month agreed to acquire Cincinnati-based Midland Co., a specialty insurer, in a deal valued at $1.3 billion. Earlier this year, Hamilton, Bermuda-based ...