Munich Re scaling back Hong Kong presence as part of regional revamp which sees expansions in Beijing, Singapore

Many of the reinsurer’s estimated 50 staff in the city ‘will be offered positions’ elsewhere, says spokesman

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Beijing’s CBD skyline by night. Munich Re says its growing level of business in the Chinese capital makes it sensible to expand its operation there, and in Singapore, while its office in Hong Kong will be scaled back. Photo: Thinkstock

Published: 8:30pm, 25 Sep 2016Updated: 11:16pm, 25 Sep 2016

Munich Re, one of the world’s biggest reinsurance firms, is scaling back its Hong Kong office and expanding its Beijing operation, within a major regional restructure.

The revamp will also see Hong Kong losing out to long-term rival Singapore as the reinsurer plans to expand its office in the city state to play a bigger role in managing its Southeast Asia business.

The company will increase its staff in Singapore, where it already employs 200 people. Until now the Hong Kong and Singapore sites have shared regional responsibility.

The plan also includes an expansion in Tokyo and its offices in Shanghai and Kuala Lumpur closed altogether. The reorganisation will be completed by the end of next year.

Munich Re, which is 2.5 per cent owned by US billionaire investor Warren Buffett, explained in a statement it was “making changes to its strategic set-up in the region...to focus more closely on local markets, while creating a more flexible structure”.

“In future, Chinese clients will primarily be managed out of Beijing, while the Hong Kong presence will be greatly reduced and the Shanghai property-casualty office closed. The Taipei Liaison Office will remain,” it added.