28 August 2003 | Translation of the German ad-hoc announcement
Group premium income increased from Euro 20.4bn in the first
half of 2002 to Euro 20.8bn. Despite the stronger euro, premium
income thus maintained last year's high level. The operating result
before tax amounts to Euro 777m in the first half year, compared to
Euro 3,486m in the same period last year. Given the current legal
uncertainty regarding the tax treatment of writedowns on and losses
on the sale of shares in equity funds and the taxation of life and
health insurers, Munich Re has made provision in the second quarter
for the anticipated tax liabilities. This taxation provision is
reflected in the half-yearly result of -Euro 603m, as are the
after-effects of the stock-market slumps in previous quarters.
The favourable performance of underwriting business and the rise in the price of shares and fixed-interest securities have substantially improved our equity capital base: shareholders' equity rose to Euro 15.1bn, following Euro 12.5bn in the first quarter. In addition to this, the successful placement in mid-April of the subordinated bonds with a total volume of Euro 3.4bn also substantially contributed to the increase of our funds to Euro 18.5bn. These funds rose by Euro 6bn over the first quarter and by Euro 4.6bn as against the end of 2002.
Munich, 28 August 2003
Munich Reinsurance Company – The Board of Management
Detailed information on reinsurance, primary insurance, investments, the outlook for 2003 and the table "Munich Re Group in the first six months of 2003 – Key figures (IFRS)" can be found in the press release which will be published immediately after this ad hoc message.