Munich American Acquires Life Reinsurance Business of CNA

ATLANTA, January 4, 2001—On December 31, 2000, Munich American Reassurance Company (MARC) completed the previously announced acquisition of the life reinsurance operations of CNA Financial Corporation. David M. Holland, MARC’s President and CEO, stated: “This transaction provides excellent strategic opportunities for further profitable business development in the U.S. and is in keeping with our goal to be one of the leaders in this market. In addition to Munich Re’s support of our organic growth, the CNA Life Re acquisition is further evidence of their commitment to MARC and to the U.S. life reinsurance market.”

Mr. Holland further stated: “CNA has been a strong presence in the U.S. life reinsurance marketplace, and we are delighted that Jeffrey S. Katz, former President of CNA Life Re, has joined MARC’s executive management team. Jeff will serve as Senior Vice President in charge of MARC’s newly established Chicago office. In addition to duties heading up underwriting, medical, mortality research, and asset related products, Jeff will also serve as President of AgoraRe, an e-commerce marketplace for facultative life reinsurance and other transactions between direct life insurance companies and their reinsurers.”

The transaction was effected via retrocession. 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 Re, the world’s leading reinsurer. 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