Year-end Results for 2000
2000 Was a Very Successful Year

ATLANTA, March 8, 2001—We have finished our financial reports for the year 2000, and it was another excellent year for Munich American Reassurance Company. On December 31st we acquired the CNA Life RE operations. This acquisition has added to our size, the number of our clients, and our expertise. We also added an office in Chicago. We are confident that our broader platform will allow us to offer more and better service than in the past.

Following the acquisition, A.M. Best upgraded our rating to A++. This was welcome news. Now, Munich American’s overall corporate size and financial strength have been confirmed by three independent agencies, Moody’s, Standard & Poor’s, and A.M. Best, each of which has awarded us its top rating.

As the result of our own growth and the acquisition of CNA Life Re, our new life reinsurance in force increased to over $300 billion (see chart). The combined new business for both companies was well in excess of $100 billion in 2000. This should make us one of the leaders in ordinary life reinsurance.

During the year we added several new Group Life and AD&D accounts. We also successfully expanded our Group LTD line, so that group premium increased substantially to almost $100 million.

In a short period of time, we have become the leading reinsurer of new Individual Disability Income coverage. Our premium grew to over $25 million in 2000 as we have continued to add new accounts. We expect IDI to be a big part of our operation in the future.

Long Term Care insurance has become a very important product addressing a growing market need. We currently reinsure several of the leading writers of LTC coverage and have continued to expand our business and services in 2000. 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