23 September 1997

Press Release

Munich Re intends to strengthen its position in Italy further / Acquisition of a participation in Reale Ri

The Munich Reinsurance Company, Munich, and the Societa Reale Mutua di Assicurazioni, Turin, have signed a declaration of intent under which Munich Re will acquire a participation of 20% in the share capital of Reale Riassicurazioni S.p.A. before the end of this year. Munich Re is planning to increase this participation in Reale Ri, currently controlled by Reale Mutua, in the course of the next few years.

The declaration of intent, which will also lead to an intensification of the significant longstanding business relations between the two groups, gives Munich Re the opportunity to further extend its position in the Italian reinsurance market. Reale Mutua will be able to focus more on the development of its core business, direct insurance in Italy and abroad.

Reale Riassicurazioni S.p.A., the second biggest Italian reinsurance company, expects its premium volume for 1997 to total approx. Lit 550bn, more than 80% of which derives from business connections with Italian companies.

Munich Re has been providing Italian insurance companies with reinsurance cover and services for over 100 years and has been directly present in the market, in Milan, for 25 years. In 1991 it established a subsidiary there, Muenchener Rueck Italia S.p. A., whose premium volume for 1997 will probably amount to approx. Lit 525bn.