A.M. Best: Top Rating for Munich Re Group

MUNICH, December 27, 2000—US rating agency A.M. Best has affirmed its top financial strength rating for the Munich Re Group, again awarding it an A++ (Superior). The agency, which was established over a hundred years ago and specializes in the rating of insurance companies worldwide, says the top grading reflects the Munich Re Group’s pre-eminent market profile, its outstanding geographic and business diversification, and its superior financial flexibility. A.M. Best also singles out the balanced structure of the Group, favorable for both earnings performance and market penetration with its business fields of reinsurance, primary insurance, and asset management. According to the rating agency, Munich Re’s intellectual and financial capital will continue to give the Group flexibility in responding to the changing market needs. Dr. Hans-Jürgen Schinzler, Chairman of Munich Re’s Board of Management, comments: “We are delighted about this affirmation of our rating. It endorses the strategic orientation of our Group and our exceptional stability and security, which are particularly sought after and appreciated by our business partners in these times of far-reaching change.”

In 1999, the Munich Re Group wrote gross premium income of €27.4bn, which derived almost equally from reinsurance and primary insurance, and achieved a profit for the year of €1.13bn. In its half-year report at 30th June 2000, it announced expected premium growth of 9% and an anticipated increase in the profit of 10% for the current business year. Group investments rose to €156bn mid-year, underwriting provisions to over €137bn, and shareholders’ equity to around €20bn. The asset management company MEAG, core of the Group’s newly established third field of business, manages and optimizes investment portfolios totaling over €130bn for the Group companies and third parties. With a view to the growing market for private provision both in Germany and abroad, MEAG has recently expanded its range of products with further funds in the securities and real estate categories.

Munich Reinsurance Company