Munich Re successfully concludes tender offer and new issue as part of its active capital management

2011/03/30

As announced on 10 March, Munich Re has as part of its active capital management repurchased outstanding bonds with a volume of €1.154bn and issued a new €1bn bond that is similarly eligible as capital.

The new bond has a term of 30 years and is first callable after ten years subject to a fixed coupon rate of 6% p.a. and thereafter a floating rate. The new bond has been structured to comply with existing insurance regulations (Solvency I), expected future insurance regulations (Solvency II), and rating agency requirements.

With this transaction, Munich Re is consistently pursuing its active capital management.

Disclaimer
The Information requested relates to financial instruments, securities or offers thereof, which are not offered in or into and may not be accepted in or from the United States, Canada, Australia or Japan or by US persons (as defined in Regulation S of the Securities Act of 1933). Accordingly, neither the instruments or securities, nor any offer thereof, have been (i) registered under the US Securities Act, nor under the laws of any state of the United States, (ii) such instruments or securities may not be offered, sold, resold, pledged or delivered, directly or indirectly, in or into the United States except pursuant to an exemption from the registration requirements of the US Securities Act, and (iii) such instruments or securities may be subject to US tax law requirements. No documents contained herein constitute an offer to sell or a solicitation of an offer to buy instruments or securities in the United States, Canada, Australia or Japan or to US persons, or in any other jurisdiction in which such an offer or solicitation is unlawful. Persons wishing to accept an offer must not use the United States, Canadian, Australian or Japanese mails or any means or instrumentality (including, without limitation, facsimile transmission, telex or telephone) of interstate or foreign commerce or any facilities of a national securities exchange of the United States, Canada, Australia or Japan for any purpose directly or indirectly related to the acceptance of an offer. Acceptances or other documents in respect of an offer should not be postmarked in the United States, Canada, Australia or Japan. All accepting persons must provide addresses outside the United States, Canada, Australia or Japan for the receipt of any instruments or securities. Further, any holder of the relevant instruments or securities shall be deemed to have represented to the issuer (i) that such holder is not a US person and (ii) that such holder is not acquiring such instrument or security for the account of any US person.

Neither the information contained in these pages, nor any opinion expressed, constitute an offer of or invitation to purchase instruments or securities in any jurisdiction. Any such offer or invitation will only be made in documents to be published in the due course and any such offer or invitation is limited to the information provided in such documents.

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Disclaimer

This press release is prepared for the purpose of public announcement of the insurance solution provided by Munich Re in connection with the issuance of the bonds referred to herein (the "Bonds") and does not constitute or form part of any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for any securities in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment therefore.

All of the Bonds have been sold and this announcement is a matter of record only. The Bonds have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any state or foreign securities law and the issuer is not and will not be registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act").

The Bonds were offered and sold only to investors who are qualified institutional buyers in accordance with Rule 144A under the Securities Act and who, in the case of U.S. persons (as the term is defined in Regulation S under the Securities Act), are also qualified purchasers for purposes of Section 3(c)(7) of the Investment Company Act and may not be re-offered or re-sold except in compliance with all applicable transfer restrictions. Any purported transfer in violation of those restrictions will be null and void. In addition, the Bonds may be held only in certain permitted jurisdictions.

This press release 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 Munich Re. Munich Re assumes no liability to update these forward-looking statements or to conform them to future events or developments.

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