Munich Re Downgraded

A.M. Best Co. has downgraded the financial strength ratings to “A+” (superior) from “A++” (superior) of Muenchener Rueckversicherungs (Munich Re), and its core subsidiaries. This rating action follows Munich Re’s release of earnings for the first six months of 2003. Munich Re has reported an improvement of its non-life underwriting performance, but A.M. Best believes that earnings for the full-year 2003 will be below expectations. Munich Re has reported a half-year loss of $663 million after a $1.54 billion tax provision.

Munich Re still holds a superior business position as the world’s largest reinsurer benefiting from its outstanding global network and underwriting capacity, A.M. Best said.