Renewal of non-life reinsurance treaties at 1 January 2007: Munich Re continues its consistent underwriting policy
"Munich Re stands by its proven principle of writing business only at risk-adequate prices, terms and conditions. We have satisfactorily absorbed – also in comparison with our competitors – the large losses from natural hazards events over the past two years. This is due to our consistent underwriting policy, our integrated risk management and our diversification", said Chairman of the Board of Management Nikolaus von Bomhard at a press conference at the start of the "Rendez-Vous de Septembre" in Monte Carlo.
Approximately two-thirds of Munich Re's volume of non-life business will be up for renewal at 1 January 2007. Particular challenges at the moment are increasing risks from natural catastrophes and from the risk of terrorism. Besides this, inflation of serious personal injury losses has been noticeable in some markets; the causes are partly of a global nature (technical and medical advances) and partly the result of national developments (impacts of reforms, changes in legal conditions, organisation of healthcare systems). These challenges exemplify the fact that risks and loss potentials are steadily changing. The permanent analysis of such changes means that models and calculations – and thus also prices, terms and conditions – have to be constantly adjusted. In view of expected developments, forward-looking or "prospective" underwriting is necessary so that the risk carriers can do justice to future demands – in the best interests of their clients.
With regard to the current hurricane season, von Bomhard said: "Know-how, financial strength and broad diversification make it possible for Munich Re to continue to offer its clients extensive capacity. Risk-commensurate prices, terms and conditions naturally have to apply. Only in this way can we ensure long-term performance and profitability while remaining a strong and reliable partner that our clients can count on."
The interim report on the 3rd quarter 2006 will be published on 7 November 2006.
signed von Bomhard signed Küppers
This media information 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 our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.