Profit of Euro1.5 bn for the first nine months

Profit of Euro 365m for the third quarter, despite windstorm losses of approx. Euro 550 m

Details of the Munich Re Group's figures at 30 September 2004: The profit for the first nine months of 2004 amounts to Euro1.5bn (compared with – Euro 0.5 bn in the corresponding period last year). In spite of severe hurricanes and typhoons in August and September, the Group kept on course in the third quarter, with a profit of Euro 365m (42 m). Apart from the covers for natural hazards, the reinsurance underwriting business performed very well, with the profit tripling in the first nine months to Euro 1.4 bn (0.4 bn). Primary insurance also made a positive contribution to the Group result with Euro 135m (-907m).

Premium income remained at a high level in the first nine months, totalling Euro 28.9bn (30.7 bn). Shareholders' equity has increased to Euro 19.5bn since the beginning of the year (31.12.03: Euro 18.9 bn), primarily due to the high consolidated profit.

The Group's primary insurers, in particular ERGO, Karlsruher and Europäische, continued their positive development in the third quarter. They improved their net profit for the first nine months to Euro 135 m (-907 m), the equivalent period last year having been affected by extreme tax burdens and high writedowns on equities.

The life and health insurers bettered their last year's result for the first nine months by approx. Euro 700 m to Euro 45 m (-649 m). Premium declined marginally to Euro 8.8 bn (8.9 bn), falling in life insurance to Euro 5.4 bn (5.5 bn).

The property-casualty insurers contributed Euro 90 m (-258 m) to the primary insurance result. The combined ratio for property-casualty business, including legal expenses insurance, amounted to an outstanding 92.2 % (96.3 %).

The largest part of the primary insurance segment, the ERGO Insurance Group, earned a profit of Euro 176 m (-718 m) in the first three quarters.

It expects to earn its cost of capital in 2004, and thus earlier than originally announced. In the current year, it will strengthen VICTORIA Leben's equity capital through an allocation of Euro 500 m to the capital reserve. Munich Re will help finance this amount out of existing Group resources through a subordinated loan of Euro 400 m to ERGO.

The Group is adhering to its result target of Euro 2 bn, but after the exceptional series of windstorms, it now gives an amount of Euro 1.8 bn as the lower limit of the target range.

Further details regarding reinsurance, primary insurance and investments in the quarterly report will be available in the press release published immediately after the release of this ad-hoc announcement.