Munich Re to stop doing business in Iran

Munich Re, the world's biggest reinsurer, on Friday became the latest German firm to pull out of Iran as pressure grows for new sanctions against the Islamic republic over its nuclear programme. The company said in a brief statement that due to the "political situation" it has decided not to renew any existing contracts when they expire or to write any new business.For a firm generating close to €40 billion ($54 billion) in premiums each year, the loss of an estimated €10 million is small, but the move is politically significant.The announcement follows a similar move by German engineering giant Siemens last month, and comes amid pressure from Germany's partners to cut its business ties with Iran.Germany, which recently lost its crown to China as the world's top exporter, exported almost €4 billion worth of goods to Iran in 2008, mainly machine tools and industrial equipment, a rise of nearly nine percent.
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