Munich Re AGM Sets Record Dividend; 2006 Outlook Optimistic

April 20, 2006

Shareholders at Munich Re’s Annual General Meeting on Wednesday April 19 were treated to some good news. Proposals by the reinsurer’s Supervisory Board and Board of Management were adopted by large majority of shareholders, setting dividends of €3.10 ($3.826) per share for 2005 – a 55 increase. They also learned that reinsurance renewals had laid “the foundations for another successful business year in 2006.”

“Given its outstanding result for the business year 2005, Munich Re is paying out a record dividend amount totaling €707 million [$872.58 million],” announced Chairman of the Board of Management Nikolaus von Bomhard in his report to shareholders. “We bettered the record profit we had set in 2004, achieving another exceptionally good result in Munich Re’s 125th anniversary year. With a profit of over €2.7billion [$3.33 billion] for 2005, the Group met its return target.

“Although the high hurricane losses put us to the test, thanks to our broad diversification with significant operations in primary insurance and reinsurance, we were able to more than just compensate for the burdens. Another contributor to the profit was an excellent investment result, which was partly the consequence of further derisking on the assets side.

“In the current business year, we are aiming at a consolidated profit in the range of €2.6 billion to €2.8 billion [$3.2 to $3.45 billion]. As things stand at present — taking into account the major losses incurred in the first quarter — we are on track.”

Von Bomhard said Munich Re had renewed “a large portion of its reinsurance treaties in non-life business,” which had “laid the foundations at the beginning of 2006 for another successful business year.” He noted that this trend continued with April renewals in Japan and Korea. “Munich Re was able to increase its shares in profitable treaties and acquire promising new business,” he continued. “Altogether, our business volume in both countries thus grew further — with enhanced profitability.”

He also reiterated the Group’s commitment to strict adherence to managing its risk exposures by assuring “adequate prices, terms and conditions in the forthcoming renewals of treaties at 1 July in parts of the US market, Australia and Latin America,” where it expects to see a similarly stable environment.” He added: “Profitability before growth: this maxim continues to apply unchanged. We aspire to be the most profitable of the big five reinsurers.”

Further information about the Group and the actions taken at the AGM, including all voting results are available at www.munichre.com/agm.

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