Munich Re Group Annual Report 2006 (PDF, 1.8

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Munich Re Group Annual Report 2006 Share buy-back programme with a volume of €1bn In addition to our shareholder-friendly dividend policy, we are intent on reducing capital costs – to the benefit of our shareholders – by employing our capital efficiently and thus managing the amount of our equity in line with operational requirements. Consequently, on 7 November 2006, the Board of Management decided to buy back Munich Re shares with a value of up to €1bn via the stock exchange in the period up to the Annual General Meeting on 26 April 2007. This step is intended to further strengthen the confidence of our shareholders and optimise our capital management. Share buy-back as an additional yield If a company buys back shares and then retires them, the number of shares issued consequently falls. Future profits are divided between fewer shares – the earnings per share increase. Besides the dividend, shareholders will thus receive an additional yield in 2006; altogether, the payout ratio to shareholders will amount to 58% of the profit for the year. The share buy-back was concluded by the end of February. Just over eight million shares were acquired at an average price of €124.36. These shares will be retired prior to the Annual General Meeting. Further details of the buy-back programme can be viewed under “Investor Relations > Our Shares” at www.munichre.com. Share profile Munich Re shares are no-par-value registered shares. Each share carries one vote. First admitted for trading on the stock exchange in Munich on 21 March 1888, they are today listed on all the German stock exchanges. The major part of the trading (98.3%) takes place on the electronic platform Xetra. Reuters MUVGn Bloomberg MUV2 40 ISIN: DE 000 843 002 6 WKN: 843 002 The average daily turnover of Munich Re shares amounted to €220m in the year under review, putting us in ninth place among the DAX stocks at year-end 2006. In terms of market capitalisation, we ranked 12th, with €29.9bn. Free float at 100% Until the end of February 2007, Allianz was Munich Re´s largest single shareholder, with 9.4% of the share capital. At the beginning of March 2007, Allianz redeemed its BITES exchangeable bond early with Munich Re shares, which reduced its stake in Munich Re to 4.9%. This shareholding Key figures for our shares Munich Re Group in 2006_Munich Re shares 2006 2005 Share capital €m 587.7 587.7 Number of shares at 31 December m 229.6 229.6 Year high € 131.99 121.88 Date 28.12.2006 5.12.2005 Year low € 97.15 83.32 Date 14.6.2006 13.5.2005 Year-end closing price € 130.42 114.38 Annual performance (excluding dividend) % 14.0 26.5 Beta relative to DAX 0.9 1.0 Market capitalisation at 31 December €bn 29.9 26.3 Market value/equity * at 31 December 1.1 1.1 Average daily turnover ’000 1,910 1,825 Earnings per share € 15.12 11.74 Dividend per share € 4.50 3.10 Dividend yield at 31 December % 3.5 2.7 Overall dividend amount €m 988 707 * Including minority interests. is now allocated to the free float. At the end of September 2006, AXA notified us that it held more than 5% of our shares, mostly attributable to it via an investment and asset management company in the USA (AllianceBernstein L.P.). Designated a purely financial investment without strategic interests, these shares are included in the free float. The UniCredit Group has further reduced its stake held via HypoVereinsbank from 4.9% to 2.2%. Since March 2007, our free float – a prime factor for the weighting of Munich Re shares in various indices – has stood at 100%. The number of international investors has continued to grow. On 31 December 2006, nearly 70% of our shares were held by foreign investors (end of 2005: around 60%). Private investors accounted for 7.7%, and it is our aim to increase this proportion.
Munich Re Group Annual Report 2006 Munich Re Group in 2006_Munich Re shares Investor groups * Free float Private investors 7.6% Institutional investors 92,4% *** Percentage of share capital, March 2007. Regional distribution * Germany 37.0% Others 0.1% North America 20.7% * Percentage of share capital, March 2007. Strong weighting in many indices Munich Re shares have been represented for many years in important national and international share price indices like the DAX and the EURO STOXX 50. In the sector indices for insurance companies, they have traditionally had a high weighting. Since 2001, our shares have also been included in the Dow Jones Sustainability and the FTSEGood index family. These sustainability indices only accept companies that fulfil exacting ecological and social criteria and are among the best in their sector. Here Munich Re has played a pioneering role and enjoys an excellent reputation among socially responsible investors (SRIs). In 2006, Munich Re Weighting of Munich Re shares in various indices Status: 31 December 2006 DAX 30 % 3.9 DJ EURO STOXX 50 1.3 DJ EURO STOXX Insurance 8.4 MSCI Euro 0.9 FTSE EUROTOP 100 0.5 DJ Sustainability World 0.3 UK 14.9% Rest of Europe 27.3% developed a set of sustainability guidelines to underline the importance it attaches to this topic and to establish its commitment even more strongly within the Group. Some 2% of our stock is held by SRIs. Investor relations activities Munich Re organised more than 30 roadshows during the past year to present the Group, primarily in the USA and Europe. Management also held over 150 individual meetings with investors and analysts at our offices. Additionally, as in previous years, Munich Re participated in several investor conferences around the world. But our activities are not only geared to institutional investors: private investors can contact Munich Re directly at any time as well. They obtain prompt answers to their enquires via our shareholder hotline or e-mail. We publish all important investor relations information on our website where, besides annual and quarterly reports and investor presentations, we provide details about our shares, our current shareholder structure, analysts’ opinions, important dates in the financial calendar, and much more. The service pages of our shareholder portal (www.munichre.com/register) offer our shareholders vari- 41
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Quarterly figures Balance sheet 31.
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© 2007 Münchener Rückversicherun
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Munich Re Group Annual Report 2006 (PDF, 1.8

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