Munich Re places pandemic risks on the capital markets for the first time

Munich Re has established a bond programme amounting to US$ 1.5bn for the transfer of extreme mortality risk to the capital markets. The first five-year series of US$ 100m of Principal-At-Risk Variable Rate Notes issued by Nathan Ltd. ("Nathan") has now been successfully priced at LIBOR plus 1.35%. The programme is designed to protect Munich Re against large losses deriving from an exceptional rise in mortality rates after major pandemics or similar events across the United States, Canada, England and Wales, and Germany. Munich Re has structured the programme so that Nathan may issue future series of notes at short notice in response to increased capacity demand from Munich Re's reinsurance clients. The transaction was placed with investors across the Americas, Europe and the Asia-Pacific region.

The securities offered by Nathan Ltd. will not be and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Münchener Rückversicherungs-Gesellschaft
signed Dr. Blunck           signed Dr. Lawrence