Muenchener Rueckversicherungs-Gesellschaft AG — Earnings Release 2011

Mar 22, 2011

News Details

Ad-hoc | 22 March 2011 18:55

Munich Re estimates claims burden from earthquake in Japan at around EUR1.5bn

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München / Key word(s): Change in Forecast/Miscellaneous

22.03.2011 18:55

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Munich Re provisionally estimates that its claims payments for the
devastating earthquake and tsunami in Japan will total some EUR1.5bn (after
retrocession and before tax). As a result, its profit target of around
EUR2.4bn for the financial year 2011 can no longer be maintained.

This initial loss estimate is based solely on modelling. Owing to the
extent of the destruction, further possible aftershocks and difficult
clearing-up operations, it will be many weeks before the losses are
assessed and all the claims notifications from Japanese primary insurers
have come in. As many reinsurance covers do not attach until very high
losses have been sustained by individual cedants, it will only become
apparent at a later stage whether and to what extent reinsurers are
affected by losses under particular treaties. Further uncertainties result
from the impact on international flows of goods and supply chains from
business interruptions suffered by Japanese industrial producers.

For Munich Re, the first quarter of 2011 had already been marked by high
losses from the earthquake in New Zealand, the floods in Brisbane and
Cyclone Yasi in Australia. Now including the projected losses from the
earthquake and tsunami in Japan, the major-loss burden from natural
catastrophes amounts to over EUR2.5bn (after retrocession and before tax),
thus far exceeding the volume to be expected for this period. That means
the profit target for 2011 of around EUR2.4bn is no longer achievable.

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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.

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Language: English
Company: 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, DE0008430026
WKN: 843002, 843002
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
Stuttgart; Terminbörse EUREX; Mailand

End of Announcement DGAP News-Service

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