Munich Reinsurance Company's Annual General Meeting today:

• Proposals of Supervisory Board and Board of Management adopted by large majority of shareholders
  
  
• Dividend of €3.10 per share for 2005 – a 55% increase
  
  
• Renewals in reinsurance lay foundations for another successful business year in 2006

"Given its outstanding result for the business year 2005, Munich Re is paying out a record dividend amount totalling €707m. We bettered the record profit we had set in 2004, achieving another exceptionally good result in Munich Re's 125th anniversary year. With a profit of over €2.7bn for 2005, the Group met its return target. Although the high hurricane losses put us to the test, thanks to our broad diversification with significant operations in primary insurance and reinsurance, we were able to more than just compensate for the burdens", said Chairman of the Board of Management Nikolaus von Bomhard in his report to shareholders. Another contributor to the profit was an excellent investment result, which was partly the consequence of further derisking on the assets side. "In the current business year, we are aiming at a consolidated profit in the range of €2.6bn to €2.8bn. As things stand at present – taking into account the major losses incurred in the first quarter – we are on track."

With the renewal of a large portion of its reinsurance treaties in non-life business, Munich Re laid the foundations at the beginning of 2006 for another successful business year. The most recent treaty renewals in Japan and Korea at 1 April continued the positive trend. Von Bomhard: "Munich Re was able to increase its shares in profitable treaties and acquire promising new business. Altogether, our business volume in both countries thus grew further – with enhanced profitability." As in the past renewals, Munich Re will strictly adhere to risk-adequate prices, terms and conditions in the forthcoming renewals of treaties at 1 July in parts of the US market, Australia and Latin America, and expects a similarly stable environment in these markets. "Profitability before growth: this maxim continues to apply unchanged. We aspire to be the most profitable of the big five reinsurers," added von Bomhard.

Currently, more than 140,000 shareholders are entered in the share register, the free float having increased to 90.6% in the past year (previous year 80.6%).

The AGM adopted all the proposals of the Supervisory Board and Board of Management by large majorities:

• It voted for a dividend of €3.10 per share (previous year: €2.00), thereby increasing the overall amount distributed to €707m (2004: €457m).
• The AGM renewed the authorisation to buy back shares up to a total amount of 10% of the share capital. The authorisation granted last year would have expired in October 2006 and has thus been replaced.
• Also approved was the motion to create a new authorisation for increasing the share capital so staff of the Munich Re Group can continue to be offered employee shares. The Board of Management was authorised, with the consent of the Supervisory Board, to increase the share capital by up to €5m (previously €3.84m).
• Amendments to the Articles of Association provide for greater flexibility in selecting a venue for the AGM. Besides this, in line with the German law to strengthen corporate integrity and to modernise the right to challenge contracts (UMAG), the powers of direction of the Chairman of the AGM were changed to ensure the reasonable conduct of the AGM in terms of time and content.

All voting results are available at www.munichre.com/agm. The shareholder portal provides shareholders with regularly updated information on the Munich Re Group.