Muenchener Rueckversicherungs-Gesellschaft AG — M&A Activity 2007

Oct 17, 2007

Acquisition of The Midland Company

Telephone conference for analysts and investors

Agenda
Acquisition rationale	3
Overview of Midland	7
Financial impact	14
Summary	17
Back-up	19
	Munich Re Group –Acquisition of The Midland Company –17 October 2007 2

Agenda
Acquisition rationale	3
Overview of Midland	7
Financial impact	14
Summary	17
Back-up	Munich Re Group –Acquisition of The Midland Company –17 October 2007 19
	3

Acquisition rationale Midland acquisition	Unique opportunity to expand in US specialty p-c market
Transaction highlights US\$ 65 per share offer for 100% of outstanding shares of The Midland Company (Midland) Assumed value US\$ 1.3bn Entirely funded through own funds	Strategic rationale Focus on profitable, fast-growing US specialty insurance segments Emphasis on short-tail, low-severity personal lines insurance Further detaching Munich Re from traditional p-c reinsurance cycle Long-standing experience of Munich Re in specialty insurance via US subsidiary EPS enhancement from 2008 onwards Full integration into Munich Re Group Support of financial targets announced as part of Changing Gear programme	Munich Re Group –Acquisition of The Midland Company –17 October 2007
	No changes to Munich Re's capital management commitment to return >€8bn to shareholders by 2010	4

Agenda
Acquisition rationale	3
Overview of Midland	7
Financial impact	14
Summary	17
Back-up	19
		Munich Re Group –Acquisition of The Midland Company –17 October 2007 7

Agenda
Acquisition rationale	3
Overview of Midland	7
Financial impact	14
Summary	17
Back-up	Munich Re Group –Acquisition of The Midland Company –17 October 2007 19

Acquisition rationale 3 Overview of Midland 7 Financial impact 14 Summary 17 Back-up 19	Agenda
		Munich Re Group –Acquisition of The Midland Company –17 October 2007 17

Summary Summary	Solid basis for profitable growth
Attractive target	 Midland has a consistent long-term track record of superior underwriting leading to above market growth and profitability  Large synergy potential with Munich Re America's existing business
Fit into strategy	 Strategic fit with recently announced US strategy  Move into primary niche segments reduces dependency on p-c cycle	Munich Re Group –Acquisition of The Midland Company –17 October 2007
Generating value for shareholders	 Acquisition is EPS accretive for Munich Re shareholders already in 2008  Full commitment to >€8bn capital management programme
	Midland represents a unique opportunity to enhance Munich Re's position in US p-c specialty insurance market segments	18

Agenda
Acquisition rationale	3
Overview of Midland	7
Financial impact	14
Summary	17
Back-up	19
	Munich Re Group –Acquisition of The Midland Company –17 October 2007 19

24

Munich Re Group –Acquisition of The Midland Company –17 October 2007 Debt cancellation is non-insurance form of credit protection Gross premiums written 93.5 92.9 92.9 2005 2006 H1 2007 Segments Financial Institutions Back-up Mortgage fire Policies placed through financial institutions and written to provide protection to lenders against physical damage on homes and buildings uninsured by borrower Debt cancellation in US\$ m in % Collateral protection Policies placed through financial institutions and written to cover physical damage of uninsured manufactured housing units, automobiles or other collateral Combined ratio 100.6 122.1 79.1 101.5 2004 2005 2006 H1 2007

Gross premiums written Composed of motorcycle, watercraft, recreational vehicle, collector car and in US\$ m snowmobile insurance products 111.3 100.4 94.3 Products are underwritten primarily through general, independent and specialty agents, 55.7 and point of sale and affinity relationships Risks underwritten include both property damage as well as limited liability coverage 2004 2005 2006 H1 2007 Referred to as "Recreational casualty" because products have slightly higher bodily injury exposure than its pure property products Combined ratio Growth can develop because of enhanced in % execution as opposed to competing on basis 101.6 96.6 97.0 of price	Back-up Segments Recreational casualty
		2005 2006 H1 2007

Back-up

Segments

Other specialty products

Excess and surplus lines

• Strategic alliance with Bell & Clements entered into in February 2002
• Coverage include both personal and commercial risks with emphasis on small account property coverage

Long-haul trucking

• Provides physical damage coverage for long-haul trucks, principally to owner-operators
• Policies generally protect only against damage to insured vehicle and do not insure against liability claims

Auto rental

Predominantly written on rental recreational vehicles, coverage includes physical damage and liability

Commercial property

Policies provide property coverage for damage to manufactured homes and recreational vehicles resulting from fire, wind, hail, lightning, floods, theft or vandalism

Key balance sheet information and reserving
Key balance sheet information in US\$ m Total assets Total liabilities Total equity Cash and investments Deferred acquisition costs Unearned premium reserves Loss reserves Debt Statutory surplus	2002 1,101.1 792.2 308.9 745.7 96.4 406.3 164.7 90.4 242.2	2003 1,192.2 836.2 356.1 848.7 87.9 383.9 204.8 95.8 289.9	2004 1,364.7 932.4 432.3 978.3 90.4 390.4 232.9 115.9 355.5	2005 1,428.1 943.7 484.4 950.5 88.4 395.0 254.7 111.8 394.3	2006 1,569.5 994.8 574.7 1,036.4 99.3 445.3 221.6 108.4 450.7	Conservative balance sheet Predominantly short-tail business Reserve/ premium and reserve/ surplus ratio indicate
Reserving redundancy/ deficiency in US\$ m 1996 -3 1997 4 1998 10 1999 3 2000 1 2001 3 2002 -2 2003 2004 2005 10			33	39		conservative reserving policy Eight out of ten years show reserve redundancies

Appendix Financial calendar
5 November 2007 Interim report as at 30 September 2007
13 December 2007 Investors' Day on ERGO, London
19 February 2008 Investors' Day on property-casualty reinsurance, London
25 February 2008 Balance sheet press conference for 2007 financial statements
17 April 2008 Annual General Meeting
18 April 2008 Dividend payment
8 May 2008 Interim report as at 31 March 2008 Analysts' conference, Munich	Munich Re Group –Acquisition of The Midland Company –17 October 2007
6 August 2008 Interim report as at 30 June 2008
7 October 2008 Investors' Day on life reinsurance, London
7 November 2008 Interim report as at 30 September 2008	30

Appendix For information please contact
Sascha Bibert Head of Investor & Rating Agency Relations Tel.: +49 (89) 38 91-39 10 E-mail: sbibert@munichre.com	Ralf Kleinschroth Tel.: +49 (89) 38 91-45 59 E-mail: rkleinschroth@munichre.com
Dr. Thomas Dittmar Tel.: +49 (89) 38 91-64 27 E-mail: tdittmar@munichre.com	Robert Kinsella Tel.: +49 (89) 38 91-30 19 E-mail: rkinsella@munichre.com
Frank Kopfinger Tel.: +49 (89) 38 91-28 94 E-mail: fkopfinger@munichre.com	Andreas Silberhorn Tel.: +49 (89) 38 91-33 66 E-mail: asilberhorn@munichre.com	Munich Re Group –Acquisition of The Midland Company –17 October 2007
	Münchener Rückversicherungs-Gesellschaft Königinstrasse 107, 80802 München, Germany Fax: +49 (89) 38 91-98 88 E-mail: IR@munichre.com Internet: www.munichre.com