Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006
Notable events in 2006
Another record result
Thanks to excellent results in reinsurance and primary
insurance business, Munich Re achieves another record
profit of €3.5bn. The dividend proposal of the Board of
Management and Supervisory Board at the Annual General
Meeting on 26 April 2007 will therefore be payment
of an increased dividend of €4.50 (3.10) per share (45%
higher than last year). Pages 66, 142
Life reinsurance subsidiary set up in Moscow
By establishing Munich Re Life E.E.C.A. in Moscow,
Munich Re consolidates its outstanding market position
in the Commonwealth of Independent States, where it
opened its first foreign office in 1885, and strengthens contacts
with clients and authorities. As the first foreign reinsurer
to be incorporated there, it can now offer reinsurance
solutions on a rouble basis. Page 73
D.A.S. expands business in Germany and abroad
ERGO subsidiary D.A.S., Europe’s largest legal expenses
insurer, sets up a subsidiary in Estonia and introduces
the class of legal expenses business there, with initial
focus on cover for car drivers. In the German market,
D.A.S. continues its strategic development from a reimburser
of costs to a legal services provider with a new
product generation. Page 90
Scaled-down Munich Re Board of Management
Christian Kluge and Karl Wittmann retire as members of the
Board of Management on 31 December 2006; Dr. Heiner
Hasford retires on 28 February 2007. Dr. Ludger Arnoldussen,
hitherto Chairman of the Board of Management of
Swiss Re Germany AG, Munich, is appointed to the Board
of Management to take over the Germany, Asia Pacific and
Africa Division and also General Services. Pages 32, 36
New IT platform successfully introduced
In September 2006, Gloria (Global Reinsurance Application)
replaces 17 legacy systems in Munich and in many
directly connected business units in the international
organisation, thereby accelerating processes and the
handling of reinsurance transactions. Page 109
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ERGO in India
DKV and the Apollo Group, Asia’s largest chain of hospitals,
establish a joint-venture health insurance company.
It is scheduled to commence operations with inpatient
indemnity, travel and expatriate insurance products in
June 2007. Pages 14, 90
First signatory to the Principles for Responsible Investment
At the invitation of the United Nations, Munich Re participates
in the formulation of principles that provide institutional
investors with guidelines for applying social and
ecological criteria when making investments. In August
2007, we will provide information on this subject in our
first sustainability report, thus continuing our systematic
involvement in this area. Pages 92, 108
MEAG goes to China
MEAG acquires a 19% stake in PICC Asset Management
Company Ltd. (PAMC), Shanghai. Both companies aim to
extend business with private and institutional investors in
this fast-growing and promising market. The expected liberalisation
of the Chinese financial services market will
open up business opportunities for MEAG. Page 91
Catastrophe bond for earthquake risks in California
By transferring earthquake risks in California to the capital
markets for subsidiaries of the Zurich Financial Services
Group (Zurich), Munich Re again provides a capital market
solution for peak risks. In the event of earthquakes in California
leading to large losses, US$ 190m will be available
either fully or in part as cover for reinsurance. Page 85
ERGO invests in the Turkish insurer I . sviçre
ERGO expands its business in southern and eastern
Europe by acquiring a 75% stake in the I . sviçre Group, thus
attaining a leading position in the dynamic Turkish insurance
market. Pages 43, 90