Munich Re’s Review of American Re Claims-No Rating Effect Says S&P

July 5, 2005

Standard & Poor’s Ratings Services has indicated that the recent announcement by Germany’s Munich Reinsurance Co. (rated “A+”/Stable) that it is currently undergoing an in-depth reserve review at its U.S.-based operations of American Re-Insurance Co. (rated “a” -/CreditWatch Negative) and related entities has no immediate effect on the ratings and outlook on Munich Re.

Standard & Poor’s Ratings Services has indicated that the recent announcement by Germany’s Munich Reinsurance Co. (rated “A+”/Stable) that it is currently undergoing an in-depth reserve review at its U.S.-based operations of American Re-Insurance Co. (rated “a” -/CreditWatch Negative) and related entities has no immediate effect on the ratings and outlook on Munich Re.

S&P said it “expects that any additional reserve increase would not be of a magnitude to jeopardize Munich Re’s ability to maintain at least very strong capitalization.”

It also said it “expects Munich Re to continue to meet 2005 earnings expectations, which are central to the ratings.”

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