A.M. Best comments on the financial strength rating of Muenchener Rueckversicherungs-Gesellschaft AG and its core subsidiaries.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 3, 2003 A.M. Best Co. has today commented on the A++ (superior) financial strength rating of Muenchener Rueckversicherungs-Gesellschaft AG (Munich Re Munich Re AG, in German Münchener Rück AG (ISIN: DE0008430026), is the world's second largest reinsurance company with over 5,000 customers in 160 countries and has its headquarters in Munich, Germany. ) and its core subsidiaries, following the release of 1st Quarter results for 2003. Despite further write-offs in its investment portfolio, Munich Re's risk-adjusted capitalisation remains superior. A.M. Best recognises the significant improvement in Munich Re's non-life reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. performance with a combined ratio of 96.8 as compared with 101.7% in the same period for the previous year. However, overall earnings have remained depressed. A.M. Best will continue to monitor Munich Re's ability to achieve its operating performance targets--combined ratio below 100% and growth in embedded value Embedded Value A common valuation measure used outside North America particularly in the insurance industry. It is calculated by adding the adjusted net asset value and the present value of future profits of a firm. operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before of more than 10% in 2003. For further details, please refer to A.M. Best's press release dated 6th December 2002. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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