Download PDF version - Munich Re
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<strong>Munich</strong> <strong>Re</strong> registered shares<br />
Development in the value of <strong>Munich</strong> <strong>Re</strong><br />
registered shares<br />
Investment in <strong>Munich</strong> <strong>Re</strong> registered shares<br />
has been very attractive for the long-termoriented<br />
investor in recent years. Whereas<br />
the DAX share index has risen by 35 %<br />
since July 1990, <strong>Munich</strong> <strong>Re</strong> registered<br />
shares have increased in value by 74 %,<br />
also far outstripping the international<br />
index for the insurance sector, which rose<br />
by only 24 % in the same period. In the past<br />
months the share price, whilst subject to<br />
fluctuations, has increased significantly. The<br />
rights issue in November 1995 was very<br />
positively received by the capital market.<br />
After a generally weaker phase for shares in<br />
banks and insurers, the period since June<br />
1996 has seen <strong>Munich</strong> <strong>Re</strong> registered shares<br />
recording above-average increases in value<br />
– partly just before and just after the decision<br />
of the Deutsche Börse AG to include<br />
<strong>Munich</strong> <strong>Re</strong> registered shares in the DAX 30<br />
share index. This decision reflected the<br />
importance of the <strong>Munich</strong> <strong>Re</strong> in terms of<br />
market capitalization and share turnover. It is<br />
only logical, moreover, for the world’s leading<br />
company in a particular sector to be<br />
represented in the top national share index.<br />
Public awareness of the attractiveness of an<br />
investment in <strong>Munich</strong> <strong>Re</strong> registered shares<br />
will now be substantially enhanced.<br />
Development in the value of a specimen<br />
deposit of <strong>Munich</strong> <strong>Re</strong> registered shares<br />
A German shareholder who bought 100<br />
<strong>Munich</strong> <strong>Re</strong> registered shares at the beginning<br />
of July 1990 at a price of DM 2,300<br />
per share paid a total of DM 230,000 (not<br />
including stock exchange transfer tax and<br />
other charges). By 30th August 1996, with<br />
reinvestment of the dividends to purchase a<br />
further 2 shares and of subscription rights<br />
(opération blanche) to purchase another 18,<br />
a total of 20 shares and 12 warrants had<br />
been added to the deposit. At a price of<br />
DM 3,405 per share and DM 258 per<br />
warrant, this makes the total value of the<br />
deposit DM 411,696, equivalent to an<br />
increase of 79 %. According to the Internal<br />
Rate of Interest method, this works out at an<br />
average annual rate of return of 9.9 %.<br />
We will be happy to supply further<br />
information about <strong>Munich</strong> <strong>Re</strong> shares on<br />
request.<br />
Price development<br />
1st July 1990 = 100<br />
200<br />
180<br />
160<br />
140<br />
120<br />
100<br />
80<br />
60<br />
1990 1991 1992 1993 1994 1995 1996<br />
Position: 30th August 1996<br />
<strong>Munich</strong> <strong>Re</strong> registered shares<br />
German share index (DAX)<br />
Morgan Stanley insurance index (in DM)<br />
Development in the value<br />
of a specimen deposit as from 1st July 1990<br />
in DM thousand<br />
230<br />
252<br />
256<br />
308<br />
321<br />
342<br />
412<br />
1990 1991 1992 1993 1994 1995 1996<br />
Position: 30th August 1996
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