Munich Re to buy back shares?

Munich Re boss Nikolaus von Bomhard says the reinsurer will use surplus capital to buy back its own shares rather than to make acquisitions because of high takeover prices, Reuters reports.

"Our equity capital is growing. We can't imagine ploughing all of it into the business," von Bomhard told the Frankfurt International Business Journalists' Club.

Munich Re will buy firms that fill gaps in its strategy, but prices have remained too high, he said.

Dividends and buyback

"Our strategy is known to the investment banks. It hasn't changed over the last three to four years," von Bomhard said.

Munich Re has sufficient capital to cover a dividend payment and a share buyback, von Bomhard said.