Munich Re concludes acquisition of Sterling Life Insurance Company / Purchase of leading US provider of health insurance benefits for seniors strengthens International Health segment

As announced in December 2007, Munich Re has acquired a 100% stake in Sterling Life Insurance Company (Sterling) for a purchase price of €243m (US$ 352m).

With total premium income in 2007 of US$ 798m and 176,000 clients, Sterling is one of the leading providers in the US market of health insurance benefits for the 50+ and 65+ age brackets. Sterling holds a strong position in the growing market for Medicare Advantage plans. Medicare Advantage plans are health plan options that are part of the US government’s Medicare programme and are administered by private insurance companies. The senior markets are the highest growth segments in the US healthcare sector.

Wolfgang Strassl, Munich Re Board member responsible for HealthCare, stressed: "The acquisition of Sterling was a key step for us in implementing our International Health strategy. Sterling strengthens our competence as a global provider of integrated solutions in healthcare management."

The Munich Re Group operates worldwide, turning risk into value. In the financial year 2006, it achieved a profit of €3,519m, the highest since the company was founded in 1880, on premium income of approximately €37bn. The Group operates in all lines of business, with around 37,000 employees at over 50 locations throughout the world and is characterised by particularly pronounced diversification, client focus and earnings stability. With premium income of around €22bn from reinsurance alone, it is one of the world's leading reinsurers. Its primary insurance operations are mainly concentrated in the ERGO Insurance Group. With premium income of almost €17bn, ERGO is one of the largest insurance groups in Europe and Germany. It is the market leader in Europe in health and legal expenses insurance, and 33 million clients in 25 countries place their trust in the services and security it provides. The global investments of the Munich Re Group amounting to €177bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group. For more information about the Munich Re Group, please visit www.munichre.com.

Munich Re America HealthCare, one of the leading providers of healthcare risk management solutions in the U.S., is a division of Munich Reinsurance America, Inc., a member of the Munich Re Group. For more information about Munich Re America HealthCare, please visit www.mrahc.com.

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