Holding cut by almost a third
Munich Re has reduced its stake in Admiral Group by almost a third in order to reduce it the concentration within its equity portfolio.
The company has reduced its holding from 15.1% to 10.2%, selling 13 million shares with a market value of around €130m, equivalent to 4.9% of Admiral’s share capital.
The German reinsurance giant said it would make a gain of around €107m, to be booked in the second quarter of 2009.
It said that’s its “ongoing successful co-operation” with the Cardiff-based insurer is unaffected by the transaction.
"This sale is a consequence of Munich Re’s consistent risk management approach, which proved its worth in the massive capital-market upheavals last year," said Munich Re. "By selling the shares, Munich Re is reducing the resultant concentration of values and ensuring an appropriate mix in its equity portfolio."
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