The Gerling Group is seeking buyers for its reinsurance division - Gerling Global Re - according to reports this week.
Gerling chief executive Heinrich Focke is understood to have set the wheels in motion because the reinsurer needs a stronger capital base to compete effectively in the current global reinsurance markets.
The reinsurer will either be sold 100%, or Gerling will form a partnership with an investor or it will be subject to an initial public offering.
Earlier this week, rating agency Standard & Poor's (S&P) lowered the ratings of a large number of Gerling's units. The agency cited a "lack of clarity regarding the financial strength of the future owner at the holding company level and of the potential strategic partner of Gerling Re" as the reason for the downgrades.
