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8 November 2004

Profit of Euro1.5 bn for the first nine months

Profit of Euro 365m for the third quarter, despite windstorm losses of approx. Euro 550 m

Details of the Munich Re Group's figures at 30 September 2004: The profit for the first nine months of 2004 amounts to Euro1.5bn (compared with – Euro 0.5 bn in the corresponding period last year). In spite of severe hurricanes and typhoons in August and September, the Group kept on course in the third quarter, with a profit of Euro 365m (42 m). Apart from the covers for natural hazards, the reinsurance underwriting business performed very well, with the profit tripling in the first nine months to Euro 1.4 bn (0.4 bn). Primary insurance also made a positive contribution to the Group result with Euro 135m (-907m).

Premium income remained at a high level in the first nine months, totalling Euro 28.9bn (30.7 bn). Shareholders' equity has increased to Euro 19.5bn since the beginning of the year (31.12.03: Euro 18.9 bn), primarily due to the high consolidated profit.

Reinsurance: Selective underwriting policy successful / Substantial profit
Business experience in the third quarter was marked by an unusually high number of cyclones, which impacted the segment result with an estimated Euro 550 m. However, in relative terms, Munich Re was not hit as hard as some other providers. Munich Re had restricted its exposure through increased retentions for primary insurers, liability limits and more efficient accumulation control. Despite the windstorm losses, the Group's reinsurance operations still show a clear profit of Euro 294 m (118 m), with business experience otherwise good. For the first three quarters, the Group recorded a substantial profit of Euro 1,387 m (435 m).

Primary insurance: Improved result in the first three quarters / Outstanding combined ratio
The Group's primary insurers, in particular ERGO, Karlsruher and Europäische, continued their positive development in the third quarter. They improved their net profit for the first nine months to Euro 135 m (-907 m), the equivalent period last year having been affected by extreme tax burdens and high writedowns on equities.

The life and health insurers bettered their last year's result for the first nine months by approx. Euro 700 m to Euro 45 m (-649 m). Premium declined marginally to Euro 8.8 bn (8.9 bn), falling in life insurance to Euro 5.4 bn (5.5 bn).

The property-casualty insurers contributed Euro 90 m (-258 m) to the primary insurance result. The combined ratio for property-casualty business, including legal expenses insurance, amounted to an outstanding 92.2 % (96.3 %).

The largest part of the primary insurance segment, the ERGO Insurance Group, earned a profit of Euro 176 m (-718 m) in the first three quarters.

It expects to earn its cost of capital in 2004, and thus earlier than originally announced. In the current year, it will strengthen VICTORIA Leben's equity capital through an allocation of Euro 500 m to the capital reserve. Munich Re will help finance this amount out of existing Group resources through a subordinated loan of Euro 400 m to ERGO.

Outlook for the business year 2004 as a whole
The Group is adhering to its result target of Euro 2 bn, but after the exceptional series of windstorms, it now gives an amount of Euro 1.8 bn as the lower limit of the target range.

Further details regarding reinsurance, primary insurance and investments in the quarterly report will be available in the press release published immediately after the release of this ad-hoc announcement.

Munich, 8 November 2004
Münchener Rückversicherungs-Gesellschaft – The Board of Management

Disclaimers:
This announcement, in particular the outlook for the full year 2004, contains and refers to statements relating to the future. Such forward-looking statements are based on current expectations, estimates, forecasts and prognoses as well as assessments and assumptions of the management of Munich Reinsurance Company. Such statements contain in particular comments regarding plans, strategies and outlooks. Words such as "expect" and similar expressions characterise such forward-looking statements. These statements are no guarantee that results will actually materialise in the future and they are subject to risks, uncertainties, and assumptions that are difficult to foresee. Therefore, actual consequences and results could deviate substantially from those anticipated in these forward-looking statements.