In a range between €1.7bn and €1.9bn after special writedowns by HVB Group – subject to the proviso that work on the financial statements is ongoing.
The HVB Group has informed us today that among other things it
intends to make special writedowns of Euro 2.5bn in its annual
financial statements for 2004.
Given that HVB is an associated company of the Munich Re Group, our figures are also affected. Essentially, our expenditure results from our share of 18.34% in HVB's equity capital. The amount to be included in our consolidated annual financial statements for 2004 cannot be precisely quantified yet from the information available at this time.
Work on the Munich Re Group annual financial statements for 2004 is currently ongoing. Subject to this proviso, we now anticipate that, on the basis of the figures published in November for the first three quarters and of subsequent developments, the consolidated profit for the year is expected to be within a range of Euro 1.7bn to Euro 1.9bn.
Munich, 21 January 2005
Aktiengesellschaft in München
This announcement 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.