Munich Re’s sojourn in Russia
has come to an end. After six years, the German reinsurer has
decided to cease direct operations in the country and return the
licence of its Moscow-based life reinsurance unit MR Life

In a statement, Munich Re
explained that the reason for returning the licence is the
restrained development of personal insurances markets which has
resulted in a change in demand for life reinsurance.

In addition, Munich Re said
the minimum capital requirement for Russian reinsurers will
quadruple as from 1 January 2012 to €16m ($24m). This change, said
the reinsurer, will result in MR Life EECA not being able to
operate at a profit in the medium term.

Despite its withdrawal from
the market, Munich Re noted that it has “every confidence” in the
long-term prospects for personal life insurance in Russia and the
nine other Commonwealth of Independent States markets, and does not
rule out the possibility of re-entering these markets in the