Gerling Group said it has reached a deal to divest its reinsurance operations to a consortium headed by a former chairman of Frankona Re., as part of a strategy to focus on areas such as credit insurance.
Cologne-based Gerling, which in October said it had stopped underwriting non-life reinsurance business, said it will divest its reinsurance operations - known as Gerling Global Re - at the beginning of 2003 to a group headed by Achim Kann, who once headed GE Frankona Re in Germany.
Other partners may possibly join the consortium, said Gerling in a statement. In the process, Dr. Kann will strengthen the substance of non-life reinsurance business by concluding commutation agreements. Life reinsurance will be transferred to a subsidiary before the year end for early sale to an investor.
Terms of the transaction were not disclosed.