Bloomberg) -- Munich Re, the world’s second-biggest reinsurer, namedJoachim Wenning to succeed Chief Executive Officer Nikolausvon Bomhard as the industry struggles to maintain earnings amid lowinterest rates and falling prices.

Wenning, 51, will take over the top post on April 27 next year,the Munich-based company said in a statement Tuesday. Von Bomhard,who turns 60 in July, will step down as CEO and a member of themanagement board the day before. Wenning is currently a boardmember with responsibility for life reinsurance and humanresources.

Wenning will assume leadership after prices forreinsurance declined in eight of the past 10 years, according tothe Guy Carpenter World Property Catastrophe Rate on Line Index.While losses from natural catastrophes were the lowest since 2009last year, earnings are being squeezed by record-low interestrates as well as declining reserve releases from potential claimspayments set aside in the past.

Photo: Joachim Wenning, currently a Munich Re boardmember with responsibility for life reinsurance and HR, willtake over as CEO in 2017.

Under von Bomhard’s reign, Munich Re pulled through thefinancial crisis while main competitor Swiss Re AG, based inZurich, needed 3 billion francs ($3.03 billion) from WarrenBuffett’s Berkshire Hathaway Inc. following record losses.

“Wenning’s appointment basically is a choice of continuity andwill be welcomed by investors viewing Munich Re as a defensivestock,” said Thomas Seidl, an analyst at Sanford C. Bernstein inLondon.

Related: Munich Re's John Vasturia named chairman of IICFBoard of Governors

Wenning joined Munich Re in 1991 as a treaty specialist withtechnical responsibility for life reinsurance clients in Germany.In 2005 he was appointed CEO of subsidiary New Re in Geneva. In2009 he became a member of the management board.

Leaving now would allow von Bomhard to meet a German corporategovernance standard of a two-year “cooling off period” and succeedBernd Pischetsrieder, 68, as chairman of the supervisory board whenPischetsrieder turns 70. Allianz SE, Europe’s biggest insurer,followed the same principle when Michael Diekmann last year handedthe CEO post over to Oliver Baete.

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