Purchase Of Italian Reinsurance Company Completed By Munich Re

Münchener Rück Italia SPA recently exercised its option to acquire the remaining 80% of the share capital of Reale Riassicurazioni SPA, based in Turin, Italy, according to the previously announced agreement between Società Reale Mutua di Assicurazioni and Munich Re. Munich Re has now completed the acquisition of Reale Ri for a total purchase price of approximately Lit 400bn.

Reale Ri, whose name will be changed to Torino Riassicurazioni SPA, wrote premiums of around Lit 566bn in 1997. The 1997 premium volume of Münchener Rück Italia amounted to around Lit 529bn.

For the Munich Re Group, whose reinsurance companies wrote gross premiums of just under DM 25bn in the business year 1997/98, Italy ranks as one of its most important European markets in the future.

Dr. Hans-Jürgen Schinzler, chairman of Munich Re's Board of Management, said, "The purchase of Reale Ri, the bulk of whose business comes from Italy, represents an outstanding acquisition for our Italian subsidiary. It substantially strengthens Munich Re's position in Italy, a market with interesting development potential."