Munich Re eyes Indian growth, nears JV deals

FRANKFURT, Aug 9 (Reuters) Munich Re is aiming for profitable growth in India and is close to signing deals with joint-venture partners in the life and non-life insurance sectors, Munich Re's chief executive said on Thursday.

''We think that double-digit growth is possible in a country like India,'' Nikolaus von Bomhard told a conference call with journalists.

The market for life and non-life insurance is growing by more than 10 percent per year in India, creating opportunities for Munich Re's primary insurer ERGO and other units of the group.

Von Bomhard shied away from giving specific growth targets before joint-venture partners and business plans were finalised.

India is a highly competitive market and Munich Re would need to ensure that top-line premiums did not balloon at the expense of bottom-line earnings, he said.

''Whether we get 10 percent growth in profitability, too, seems to me more of a challenge,'' Von Bomhard said.

Munich-based rival Allianz and other insurers have also moved into the Indian market, but von Bomhard played down the idea that the best local partners were already tied up.

''There is no lack of interesting partners in India,'' he said.

Munich Re said it was close to finalising memorandums of understanding with partners in the life and non-life business and would open a reinsurance branch as soon as the Indian authorities allow.

The Indian insurance market is expected to grow five-fold to 100 billion euros (8 billion) in 10 years' time, bolstered by strong economic growth and a burgeoning middle class already numbering 300 million people.

Munich Re this week raised its 2007 earnings target range to 3.5-3.8 billion euros from 3.0-3.2 billion previously, partly on expectations of a lower tax burden, after delivering stronger-than-expected second quarter earnings.

REUTERS DKS ND1830