Munich Re is launching a new division, called Global Specialty Insurance (GSI), which will be comprised of various primary insurance businesses from the group that are currently part of the reinsurance segment.

The restructuring, effective on Jan. 1, 2023, will not affect ERGO, the company’s primary insurance division.

GSI will be headed by Michael Kerner, who was recently appointed to the Board of Management.

Munich Re said the aim of the restructuring is to continue “to support the very good business performance” seen by its primary insurance businesses while driving further expansion in specialty primary insurance business.

The new GSI division mainly comprises business units from the risk solutions field, such as American Modern Insurance Group (AMIG), HSB, Munich Re Specialty Insurance, Munich Re Syndicate and Aerospace, as well as Great Lakes Insurance (GLISE).

In the course of the integration, premium volume is projected to increase from around €7.5 billion ($8 billion) at present to almost €10 billion ($10.6 billion) by 2025, in line with the company’s “Ambition 2025” strategy. (With Ambition 2025, Munich Re aims to generate a high return on equity of between 12 percent and 14 percent by 2025.)

Kerner, a U.S. citizen, joined Munich Re in December 2018 and has been responsible for Munich Re Specialty Insurance in North America. He has more than 30 years of experience in the global insurance industry.