Year-end Results for 1998
1998 Was Another Very Successful Year

ATLANTA, April 21, 1999—We have just finished our financial reports for the year 1998, and by all accounts it was another excellent year for Munich American Reassurance Company. Our new life reinsurance assumed increased to $28.3 billion, while our life insurance in force increased to $67.5 billion (see chart). Our very favorable claims experience contributed to our excellent results for the year.

With all the uncertainty in the market today, the financial strength of a reinsurer is a critical consideration. Once again, we have received an A+ (Excellent) rating from A.M. Best, as well as a AAA rating from Standard & Poor’s. Likewise, our parent, the Munich Reinsurance Company, had its A++ and AAA ratings reaffirmed by those two agencies.

For your information, Munich American has never been involved in accident pools and does not have any exposure to the workers’ compensation carve-out losses that you may have been reading about. We have asked our other affiliates and believe that worldwide that our exposure would be quite limited.

In a short period of time, we have become the leading reinsurer of new Individual Disability Income coverage. We added six new accounts last year, and we are currently talking to several others. We expect IDI to be a big part of our operation in the future.

Long Term Care insurance has become a very hot item in the market, and once again we are making great progress. We currently reinsure several of the leading writers of LTC coverage, and look for big things from that product line in the future. Our acquisition of LifePlans, Inc. at year-end 1998 allows us direct access to their expertise in this market. Should your company have interest in LTC insurance, we would love to talk to you about how we may help.

The future looks bright, and we plan to continue the strong growth pattern of the past few years. We thank you for your business and support, and we look forward to working with you in the future.

Munich American Reassurance Company