Munich Re buys Bell & Clements Group

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9 May 2007 | Group

Press release

Munich Re buys Bell & Clements Group

Munich Reinsurance Company has acquired the Bell & Clements Group. Both parties have agreed not to disclose the purchase price for this transaction.

Bell & Clements operates primarily as an underwriting manager in the US and the UK and is highly respected in this regard. Established in 1983, it has been writing and managing a growing and profitable book of primary insurance business via an exclusive network of selected agents in both these countries for many years. Bell & Clements handles approximately US$ 300m of business, which it has successfully written and managed on behalf of Munich Re Group companies and other insurers for many years. The lines of business written on behalf of the Munich Re Group are primarily property fire and selective short-tail small commercial packaged business.

Writing insurance business through selected underwriting managers like Bell & Clements via in-house fronting carriers is one of numerous growth opportunities at Munich Re’s disposal as a result of its diversified structure. Georg Daschner, member of Munich Re’s Board of Management says: "The acquisition of Bell & Clements is a first response to Munich Re’s recently announced strategy to achieve bottom-line growth. We are leveraging our combined insurance and reinsurance capabilities in order to exploit broader business possibilities. This is where we achieve substantial synergies."

Munich Re and Bell & Clements have enjoyed a very profitable business relationship for a number of years. An important milestone in this relationship was the joint establishment of Three Lions Underwriting Limited, a Birmingham- and London-based underwriting manager which writes regional UK business on behalf of Munich Re Group companies. The acquisition of Bell & Clements is the next step in this successful strategic relationship and allows the Munich Re Group to:

  • fulfil its objective to access a select and well-controlled primary insurance portfolio with strategic, long-term partners;
  • combine its financial strength and underwriting capabilities with Bell & Clements’ respected brand, management and technical insurance expertise to create a unique selling proposition for current and future customers;
  • secure a book of business with a profitable track record while at the same time providing the operational platform to consolidate and expand this business for Munich Re.


Bell & Clements will continue to operate its business as in the past. This means that, in addition to writing business on behalf of Munich Re Group companies, Bell & Clements will continue to provide a comprehensive service to its clients.

Daschner: "This is a perfect fit. The two organisations have the same business philosophy and a mutual bottom-line approach to underwriting. We have a very high regard for the management and staff of Bell & Clements and are confident that this team will continue to make a significant contribution to the strategic and operating performance of the company and the whole Group in the future."


The Munich Re Group operates worldwide, turning risk into value. In the financial year 2006, it achieved a profit of €3,536m, the highest in its 126-year corporate history. In 2006, its premium income amounted to approximately €37bn and its investments to around €177bn. The Group is characterised by particularly pronounced diversification, client focus and earnings stability. It has approximately 37,000 employees in over 50 locations throughout the world and operates in all lines of insurance. With premium income of around €22bn in the year 2006 from reinsurance alone, it is one of the world's leading reinsurers. Its primary insurance operations are mainly concentrated in the ERGO Insurance Group; it is the second-largest provider in the German primary insurance market and a leading player in the European insurance market in health insurance and legal expenses cover. The ERGO Insurance Group is present in 25 countries, and 33 million clients place their trust in the services, competence and security it provides.


Disclaimer
This press release 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.


Note for editorial departments:
In case of enquiries, please contact Dr. Christian Lawrence on +49 (89) 3891-5400 or Anke Rosumek on +49 (89) 3891-2338.

Munich, 9 May 2007

Münchener Rückversicherungs-Gesellschaft
signed Daschner           signed Dr. Lawrence

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