Year 2000 Readiness Disclosure

ATLANTA, January 5, 1999—As we are aware that all of our client companies wish to know their reinsurers are prepared for the changes to accommodate the “Year 2000,” we are posting this notice of reassurance.

Munich American is well positioned to expect minimal problems with regard to “Year 2000.” This is due to the redevelopment of our core systems over the last seven years using an integrated relational database structure. During the development of the new system, our standard practice was to use both Century and Year. The database carries full date including century, month, day, and time of day to the second. Our internally developed applications are Year 2000 compliant as of January 1, 1999.

Software providers for packages in use at Munich American have provided assurance that their software is year 2000 compliant.

Munich American operates exclusively in the life reinsurance market and does not participate in the direct insurance market.

Munich American Reassurance Company