15 April 2004

Statements by Dr. Nikolaus von Bomhard Chairman of the Board of Management of Munich Re

Balance sheet press conference on 15 April 2004

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  We are focusing firmly on a profitable future.
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  We have now drawn a clear line under several difficult years. What we have to do now is secure and build on long-term profitability.
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  ERGO is an important part of the Munich Re Group.
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  We put sustained profitability above all else. Each and every business segment in the Munich Re Group must generate a profit.
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  The Munich Re Group's reinsurers have achieved a sustained improvement in their portfolio. In 2003 they were able to record strong profits. For 2004 we firmly anticipate that we will successfully continue the positive trend.
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  ERGO has a new management organisation in place, which now puts it in a much better position to return soon to sustainably profitable results.
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  Our focus is on insurance business, and investments are intended to lend support to our core business.
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  Integrated risk management, i.e. the fine-tuning of insurance business and investments, is more important today than ever before. Anyone involved in the "risk" business has to face the special demands of dealing with risks.
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  Profitability takes precedence over growth: this is the clear target for our underwriting. Our goal for 2004 remains unchanged: we wish to achieve a net profit of €2bn.
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  Our aim is to be the first choice for our clients, shareholders and staff.

With regard to reinsurance:

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  For us, risk-adequate prices and conditions are the key to success.
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  Due to its stringent underwriting policy, Munich Re managed to substantially improve its portfolio's risk structure and thus also the profit potential.
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  Munich Re aims to be the most profitable of the leading reinsurers.
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  We put sustained profitability above all else. Each and every business segment in the Munich Re Group must generate a profit.
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  For the current business year, we wish to keep the underwriting result at the very good level attained last year.