Muenchener Rueckversicherungs-Gesellschaft AG — M&A Activity 2008

Dec 22, 2008

News Details

Ad-hoc | 22 December 2008 08:00

Munich Re agrees to terms for acquisition of AIG subsidiary Hartford Steam Boiler

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München / Mergers & Acquisitions/Acquisition

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 has agreed to acquire specialty insurer HSB Group from AIG. The
planned purchase is a further step in Munich Re’s strategy for the US
insurance market, decided on last year. The agreed purchase price is US$
742m (€531m), funded entirely from existing resources.

The HSB Group, headquartered in Hartford, Connecticut, is a wholly owned
subsidiary of the American International Group (AIG). The core of the HSB
Group is Hartford Steam Boiler Inspection and Insurance Company (HSB), one
of the largest insurance and inspection companies specialising in
engineering risks in the USA. HSB is a market leader in providing
machinery/plant and equipment breakdown insurance, inspection,
certification and engineering consulting services. In 2007, HSB posted an
after-tax profit of US$ 158m (figure according to consolidated
statutory financial statements). Its average combined ratio since 2003 was
an outstanding 73.8% (figure according to consolidated statutory financial
statements). The gross written premium income of HSB Group in 2007 amounted
to US$ 904m (figure according to US-GAAP).

Munich Re is acquiring 100% of HSB for US$ 742m (€531m) in cash. Munich Re
will finance the purchase price from internal resources. Completion of the
transaction is subject to regulatory approval, which is expected to be
completed at the end of the first quarter of 2009.

A.M. Best Company has assigned the financial strength rating A (Excellent)
to the HSB Group, Inc.

Further details may be obtained from the press release.

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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.
22.12.2008 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, DE0008430026
WKN: 843002, 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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