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Head of Munich Re Announces Retirement

April 28, 2003

MUNICH, Germany (AP) _ Munich Re, the world’s largest reinsurer, said Monday its long-serving chief executive, Hans-Juergen Schinzler, will step down at the end of this year and be replaced by another board member.

Schinzler, 62, will leave the management board of his own accord, ``in line with longer-term planning,″ Munich Re said in a statement.

He will be replaced by Nikolaus von Bomhard, 46, who is currently responsible for regional divisions covering northern, western and southern Europe and Latin America.

``Both have been with Munich Re forever,″ said Oliver Flade, an analyst with HVB Group in Munich. ``There’s a transition of more than six months and Schinzler will move on to Munich Re’s supervisory board, which signals that continuity is important for them.″

``I don’t expect any huge strategy change, nor has any problem created the situation,″ he added. ``It’s a normal transition.″

Schinzler has been with Munich Re for 35 years, almost 11 of them as chief executive. Von Bomhard has been with the company since 1985.

Munich Re shares were up 7.4 percent at 86.22 euros ($95.19) in late trading on the Frankfurt exchange.

In March, Munich Re said it more than quadrupled net profit last year to 1.1 billion euros ($1.21 billion) from 250 million euros in 2001, thanks mainly to one-time gains from selling stakes in other companies.

However, the company lost 2.2 billion euros ($2.43 billion) for the fourth quarter as the value of its investments plunged by 1.5 billion euros ($1.66 billion) in the period. That compared to a net profit of 1.65 million euros for the last quarter of 2001.

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