Muenchener Rueckversicherungs-Gesellschaft AG — Earnings Release 2008

Jul 25, 2008

News Details

Ad-hoc | 25 July 2008 10:34

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München: Lower profit in 2nd quarter of 2008 due to capital market turmoil

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München / Forecast/Half Year Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Munich Re Group: Lower profit in 2nd quarter of 2008 due to capital market
turmoil; more cautious profit forecast for the financial year 2008 as a
whole;
medium-term target for the period up to 2010 confirmed

Against the background of steep falls in share and bond prices, Munich Re
expects its profit for 2008 to be below the previously envisaged range of
€3.0–3.4bn, but still well above €2bn. The main reason for this is the
turmoil on the capital markets, which has led to an appreciable reduction
in the Group’s investment result in the first half of 2008.

On the basis of very provisional key figures, the Group expects its
consolidated profit to total around €600m (same period last year: 1,158m)
for the second quarter and about €1.4bn (2.1bn) for the first half-year.
Group equity as at 30 June 2008 will probably be in the range of €21.5bn
(compared with €23.8bn as at 31.3.2008).

Since the beginning of 2008, share prices have fallen substantially, with
the EURO STOXX 50 and the DAX showing changes of between -20% and -24% up
to 30.06.08. Fixed-interest securities and currency parities have also been
subject to exceptionally high volatility. As an investor with assets of
around €166bn, the Munich Re Group has naturally been hit by these
developments. Within the framework of its prudent and risk-conscious
investment policy, the Group’s economic exposure to equities only amounts
to just under 7% of its overall assets. Nevertheless, substantial
write-downs have had to be made for this equity portfolio and net gains on
disposals have remained well below the previous year’s figure. Write-downs
of fixed-interest securities were only small in scope, with the Group again
benefiting from its proven policy of restraint with regard to higher-risk
investments in this category. If price levels stay the same, further
write-downs of equities would be necessary over the rest of the year. This
will not apply if, as some market players expect, a significant price
recovery takes place.

Munich Re’s longer-term goals remain unaffected by this reassessment. This
also applies to the medium-term target to increase earnings per share to
more than €18 by 2010.

As planned, Munich Re’s figures for the first half-year 2008 and the
outlook for the whole of 2008 will be published on 6 August 2008. All
statements made today are, as always, conditional on normal claims and
capital-market developments.

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Information and Explaination of the Issuer to this News:

This announcement contains forward-looking statements that are based on
current assumptions and forecasts of the management of Munich Re. Known and
unknown risks, uncertainties and other factors could lead to material
differences between the forward-looking statements given here and the
actual development, in particular the results, financial situation and
performance of our Company. The Company assumes no liability to update
these forward-looking statements or to conform them to future events or
developments.
25.07.2008 Financial News transmitted by DGAP

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Language: English
Issuer: Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München
Königinstraße 107
80802 München
Deutschland
Phone: +49(0) 89 3891-0
Fax: +49(0) 89 399 056
E-mail: shareholder@munichre.com
Internet: www.munichre.com
ISIN: DE0008430026
WKN: 843002
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Hannover, Düsseldorf, Stuttgart,
Hamburg; Terminbörse EUREX; Foreign Exchange(s) Mailand

End of News DGAP News-Service

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