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Munich Re
Dr. jur. Hans-Jürgen Schinzler
Chairman of the Board of Management
Dear Shareholders,
For the third year in succession we are able to report a notable
improvement in the performance of Munich Re’s business. Whilst the
premium income of the companies consolidated in the Group accounts
remained almost unchanged at DM 29.0 billion, we again succeeded in
improving the result in the business year 1995/96: the profit for the year
achieved by the Group as a whole rose by over 80 % to DM 595 million
and the earnings per share more than doubled in comparison with the
previous year, reaching an exceptionally high level of DM 140.
The Munich Reinsurance Company’s profit for the year was DM 233 million.
The Supervisory Board and Board of Management therefore propose
increasing the dividend by DM 2.50 to DM 16 per share. The overall
dividend amount will thus be increased to DM 133 million, which means
that it will have almost doubled over the past four years. In addition, it will
again be possible to allocate an appropriate amount to the company’s
revenue reserves.
These achievements provide us with confirmation that our business policy
is the right one. Although we have to bear in mind that the positive
development of our results was due in part to a reduced incidence of large
losses and a generally favourable situation in many markets, it is our
conviction that, for all the susceptibility of risk experience to fluctuations,
our profit-oriented business policy has succeeded in structurally improving
our results. This has been confirmed by developments so far in the
business year 1996/97.
This gratifying development of our business is due in large part to the
efforts of our staff. We wish to thank them both for their hard work and
commitment and for their loyal and constructive cooperation.
Following the good results of the past three years, competition in the
reinsurance sector has intensified again. Thanks to our worldwide
organization and our highly qualified specialists we are, however, well
equipped to face this challenge. In addition to conventional reinsurance
covers, we also offer our clients financial reinsurance products, enabling
them to optimize their risk management through individual reinsurance
solutions. In our wide range of service products and other support
services, we make every effort not only to maintain but also constantly to
improve on the high quality that our clients have come to expect from us.
Direct insurers these days are paying increasing attention to the financial
solidity of their reinsurers. Munich Re, with its outstanding financial
strength, is well equipped to compete in this respect as well.
It is our aim to continue extending our market position in all important and
potentially profitable business sectors. For us, however, growth is not an
end in itself. It is desirable only if we are able at the same time to achieve
our profitability targets.
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