Best Places Munich Re’s FSR Under Review; Negative Implications

July 12, 2005

A.M. Best Co. has placed the ratings of Muenchener Rueckversicherungs-Gesellschaft (Munich Re) (Germany) and its rated subsidiaries under review with negative implications.

These rating actions follow Munich Re’s recent announcement that it is reviewing American Re’s reserve position and A.M. Best’s concerns about the potential negative impact on Munich Re’s consolidated risk-adjusted capitalisation as well as consolidated earnings in 2005.

The financial strength rating of A+ (Superior) and the issuer credit rating of “aa” have been placed under review with negative implications for Munich Re and its following subsidiaries:

* Munich Reinsurance Company of Australasia Ltd.
* New Reinsurance Company
* Munich Reinsurance Italy S.p.A.
* Munich Reinsurance Company Canada
* Munich American Reassurance Company
* Great Lakes Reinsurance (UK) PLC.

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