Germany's Munich Re and Allianz halted all remaining insurance business in Iran as their national representative body said it backed international moves toward tougher sanctions against Tehran.

Against a backdrop of rising political tensions, the world's biggest reinsurer, Munich Re, said on Thursday it was stopping business with insurance firms in Iran, becoming the second major German company this year to cut ties with the country.

Siemens last month said it would wind down its operations there.

"A tightening of economic sanctions against Iran is understandable and will be supported by the German insurance sector," industry body GDV said in a statement.

 Iranian President Mahmoud Ahmadinejad this week said any country that tried to impose new sanctions on Iran would regret its actions, as the United States and Russia voiced shared concern about Tehran's nuclear programme. -Reuters