15 October 2008

Financial market crisis:
Munich Re solidly positioned

In the past week, developments on the financial markets worsened dramatically. A rescue package for the financial markets has meanwhile been adopted.

Dr. Nikolaus von Bomhard, Chairman of Munich Re's Board of Management:
"We welcome the measures adopted by the European states and the German Federal Government. They were necessary steps at the right time to calm and stabilise the financial markets. The share-price recoveries over the past two days are a first positive indication that these measures are taking effect. But the package of measures probably cannot prevent the crisis spreading to the real economy – stagnation at least is likely in Europe and the USA."

Like the insurance industry as a whole, Munich Re has not been left unscathed by the market developments. But as things stand at present, no fundamental impacts on the Group are to be expected. Munich Re’s capitalisation is solid.