Munich Re, the world’s biggest reinsurance group, indicated confidence that it had overcome the financial crisis by telling investors on Thursday that it would buy back up to €1bn ($1.45bn) of its shares.

The decision to resume a buy-back programme – after a seven-month hiatus – means the group believes its capital position is strong enough to withstand any further shocks. Nikolaus von Bomhard, chief executive, said: “We are keeping our word ... in our view, the economic environment has now stabilised sufficiently. We are consequently returning unneeded capital to our shareholders.”