AFP, Frankfurt, Feb 19, 2010  – he world’s biggest reinsurance company, Munich Re, said late Thursday it would cease activities in Iran owing to the political situation there.
’Due to the political situation in Iran Munich Re has decided not to renew existing business or write any new business with insurance companies there,’ a brief statement said.
The group estimated the annual financial loss resulting from its decision at around 10 million euros (13 million dollars).
Last year, it earned premiums on insurance coverage worldwide that totalled 41.4 billion euros.
Tensions are high over Iran’s nuclear programme meanwhile, with the United States voicing renewed concern following a report by the UN’s atomic watchdog that suggested that Tehran might be working on a nuclear warhead.
While Iran insists its nuclear intentions are peaceful, Western powers suspect Iran is enriching uranium to make atomic weapons.
Germany is one of the world’s leading exporters to the country but pressure to roll back dealings has grown as the international community mulls sanctions in response to the disputed nuclear programme.
The German industrial giant Siemens said in late January that it would stop signing new deals from the middle of this year after Tehran said it had arrested two German diplomats.