Munich Re intends to resume its suspended share buy-back programme and repurchase shares with a volume of up to €1bn by the 2010 Annual General Meeting. The buy-back is scheduled to start shortly.
In the period from 1 October 2009 until the Annual General Meeting on 28 April 2010 at the latest, Munich Reinsurance Company intends to buy back shares for a total purchase price of up to €1bn. On the basis of the current share price, this would amount to around 9.2 million shares or 4.7% of the share capital. The repurchased shares are to be retired.
Nikolaus von Bomhard, Chairman of Munich Re’s Board of Management said: “We are keeping our word and are resuming our share buy-back programme after a seven-month break. In our view, the economic environment has now stabilised sufficiently. We are consequently returning unneeded capital to our share-holders.” Von Bomhard stressed: “Our capitalisation is such that it enables us to continue taking selective advantage of opportunities for profitable growth despite the share buy-back. And we are still well equipped even if there should be a setback in the economic recovery.” The resumption of the share buy-back programme was proof of Munich Re’s flexibility, he added.
Since November 2006, Munich Re has carried out share buy-backs with a total volume of €4bn, including €1bn in 2006/2007. As part of its Changing Gear programme in May 2007, it announced share buy-backs of more than €5bn. Of this amount, share buy-backs totalling €3bn have already been completed: €2bn in 2007/2008 and €1bn in 2008/2009.
