In the run-up to the reinsurance renewals 2004/5: - Munich Re continues a selective underwriting polic - ... and anticipates a stable renewal season - €2bn result target reaffirmed

In the main reinsurance renewal season, Munich Re will once again give precedence to making its business relations profitable. "Our results in the last quarters are impressive proof that our policy is on track", said Nikolaus von Bomhard, Chairman of the Board of Management, at a press conference on the eve of the "Rendez-Vous de Septembre". "A profitable Munich Re is the best guarantee for our clients worldwide that they can continue to rely on the good service, high-quality products, sufficient capacity and excellent financial strength they have grown accustomed to. Here in Monte Carlo we will discuss how to sustain the profitability of our business relations on both sides."

The Munich Re Group considers it can still achieve its objectives for the year – a profit of €2bn and a combined ratio in non-life reinsurance of below 97% – taking into account the claims experience thus far. "We remain a strong partner for our clients thanks to our consistent underwriting policy."

Given the natural catastrophe potential that has manifested itself in the past four weeks, von Bombard expects the renewal season to be stable. The capitalisation of the international reinsurance industry has not grown as strongly as it did in comparable previous market phases. Historically low interest-rate levels and developments on the stock markets have played a significant part in preventing exaggerated competition. "Primary insurers and reinsurers have no other choice but to agree risk-adequate prices and conditions on their markets."

Munich Re has obviously been able to make its consistent approach understandable to its clients. In a survey of European insurers this summer, Munich Re was named "Best Reinsurer Overall" both in life and non-life insurance. The Flaspöhler Institute, which was founded in 1983, specialises in conducting market surveys for service companies. These surveys, which are carried out every two years by the American institute, are becoming increasingly important in the insurance industry. Flaspöhler asks primary insurers and brokers what they expect and require of "their" reinsurers.

Munich Re was awarded the title "Reinsurer of the year" by the British journal "Reactions", which is largely read by primary insurers and reinsurers; the survey was based on a vote taken by its readers who, for the most part, are Munich Re clients or potential clients.

Von Bomhard: "We are pleased that our partners value their business relations with us so highly. Their confidence is a great incentive for us."

The interim report 3rd quarter 2004 will be published on 8 November 2004.

Münchener Rückversicherungs-Gesellschaft
signed Dr. von Bomhard          signed Küppers