American Re Issues Statement Reinforcing Commitment to U.S. Casualty Business

April 26, 2004

American Re-Insurance Company, Munich Re’s U.S. subsidiary, has issued a statement underscoring its commitment to its U.S. casualty business.

“We are in this business to stay and we want to assure our clients that we are,” stated Company Chairman John Phelan. American Re’s statement was issued in response to various comments, which appeared in U.S. and European newspapers, concerning statements made at a press conference last week by its parent company. Some commentators had interpreted the company’s remarks as indicating that it planned on reducing its U.S. commitment to casualty lines.

Nikolaus von Bomhard, Chairman of the Board of Management of Munich Re, also confirmed Phelan’s remarks about the group’s U.S. casualty business. “It is not Munich Re’s intention to withdraw from US casualty business,” he stated. “A study of US casualty business is a joint effort between Munich Re and American Re to identify and select profitable casualty opportunities. I expect that this fundamental exercise to analyze the current and future key drivers of US casualty business will give American Re a competitive advantage in the US reinsurance marketplace to the benefit of the Group’s shareholders and clients.”

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