20 April 2000

Press Release

Munich Re acquires Alte Leipziger Europa / Expansion of activities in Central and Eastern Europe

Munich Reinsurance Company is acquiring from the Alte Leipziger Group of Companies the 60.13% stake held by Alte Leipziger Holding AG in the company Alte Leipziger Europa Beteiligungsgesellschaft AG (AL Europa), Bad Homburg, retroactively as from 1st January 2000.

AL Europa, a management holding company, mainly holds majority stakes in Central and Eastern European insurers. Of its total of 14 participations in 8 countries, Hestia is the most important subsidiary, with premium income equivalent to around DM 250m in 1999 (previous year: DM 184m) making it the third largest insurer in the Polish market. The Baltic companies Drauda, Bico and Rigas Fenikss also have leading positions in their markets. Thanks to the rapid growth of its subsidiaries, AL Europa increased its consolidated premium income in 1999 by around 35% to over DM 400m. Munich Re has supported the development and expansion of the company from the beginning, obtaining an equity participation in 1996 and most recently holding just under 15% of the company's share capital of DM 70.7m with a pre-emptive right to acquire an additional stake. Further shares in AL Europa are held by the Swiss group Helvetia Patria.

Dr. Hans-Jürgen Schinzler, CEO of the Munich Re Group: "Central and Eastern Europe is an area with pronounced growth potential. We strengthened our traditional reinsurance activities there a year ago with the establishment of a service company for the Polish market. Through the acquisition of a majority stake in AL Europa, our Group will now profit directly from the development of the insurance industry in the whole region."

The Munich Re Group's premium income totals DM 53.6bn. In reinsurance, where it plays a leading role internationally, Munich Re is represented by over 100 subsidiaries and offices at a total of more than 60 locations throughout the world. The reinsurers contribute around half of the Group's premium income. The other half comes from its primary insurers; these include ERGO, the second largest primary insurance group in Germany. With a view to expanding the Munich Re Group's activities in the field of asset management, Munich Re and ERGO set up MEAG MUNICH ERGO AssetManagement GmbH.

A diagram showing the structure of AL Europa's shareholdings is enclosed.

Enclosure
Alte Leipziger Europa Beteiligungsgesellschaft AG