Munich American Reassurance to Acquire Life Reinsurance Business of CNA

ATLANTA, October 6, 2000—Munich American Reassurance Company (MARC) today signed a definitive agreement to acquire the life reinsurance operations of CNA via retrocession. This transaction will double the amount of life reinsurance in force at MARC, significantly increase MARC’s facultative business, and add new annuity oriented products. MARC will establish an office in Chicago, which will be led by Jeffrey S. Katz, the current President and COO of CNA Life Re. MARC is also acquiring AgoraRe.com, an e-commerce marketplace which facilitates the exchange of information between life insurance companies and reinsurers.

David M. Holland, MARC’s President and CEO, stated: “We view the acquisition of CNA Life Re as an excellent strategic fit with our current US life operations, and in keeping with our desire to be one of the leaders in this market. We are pleased that Jeff Katz will continue to lead his team as a part of the MARC family. Jeff will become a member of the Executive Management of MARC and President of AgoraRe.”

“CNA has been a strong presence in the U.S. life reinsurance marketplace,” observed Jeff Katz. “We are noted for our facultative underwriting services, and our creation of the AgoraRe.com. CNA Life Re’s talented employees have a great deal to offer MARC, and we look forward to joining an organization that is committed to being a leader in reinsurance worldwide.”

Lehman Brothers acted as MARC’s financial advisers in connection with this transaction. The financial terms of the transaction were not disclosed.

MARC is a wholly owned subsidiary of Munich Reinsurance Company, the world’s largest reinsurance group. Munich Re has earned the top ratings from the various rating agencies, and MARC shares Munich Re’s AAA rating from Standard & Poor’s and has received an A+ rating from A.M. Best. The Munich Re Group includes branches, reinsurance subsidiaries, service companies, and liaison offices in more than 60 locations worldwide, serving insurers in more than 150 countries.

For further information visit our Web sites at www.marclife.com or www.munichre.com.

Munich American Reassurance Company