16 July 1998
Press Release
Munich Re completes purchase of Reale Ri
On 1st July 1998 Münchener Rück Italia S.p.A. exercised its option to acquire the remaining 80% of the share capital of Reale Riassicurazioni S.p.A., Turin, as agreed between
Società Reale Mutua di Assicurazioni and Munich Re. It has thus completed the acquisition of Reale Ri for a total purchase price of approximately Lit 400bn.
Reale Ri, whose name will be changed to "Torino Riassicurazioni S.p.A.", wrote premiums of around Lit 566bn in 1997, thus ranking number 2 among Italian reinsurance companies. The 1997 premium volume of Münchener Rück Italia amounted to around Lit 529bn.
For the Munich Re Group, whose reinsurance companies wrote gross premiums of just under DM 25bn in the business year 1997/98, Italy will rank as one of the most important European markets in future.
Dr. Hans-Jürgen Schinzler, Chairman of Munich Re's Board of Management, commented: "The purchase of Reale Ri, the bulk of whose business comes from Italy, represents an outstanding acquisition for our Italian subsidiary. It substantially strengthens Munich Re's position in Italy, a market with interesting development potential."
The offices of Presidente and Amministratore Delegato of the future Torino Ri will be assumed by Manfred zur Nedden, Amministratore Delegato of Münchener Rück Italia, Milan.