MEAG and PAMC on the road to success together

A year into their collaboration, PAMC, asset manager of PICC (People’s Insurance Company of China), and MEAG, asset manager of Munich Re and ERGO Insurance Group, take a look back at what they have achieved. MEAG CEO Dr. Thomas Kabisch says: "The volume of assets managed by PAMC increased by 40 % between the beginning of this year and the end of the third quarter, up to 6.3 (4.5) billion euros. PAMC is in an early phase of its development, with high growth rates, and we expect to see big increases in the assets under management next year as well. Even if there is a temporary consolidation on the Chinese market, the potential for profit is enormous."

China will probably be one of the fastest growing economies in the world in the next ten years. And PAMC's business should grow accordingly. Kabisch: "With our participation in PAMC we are also taking part in the dynamic expansion process in the Chinese economy. Even if our business only develops in line with the market average in China, we can grow at a much more profitable rate there than in Euroland." MEAG expects Chinese GDP to grow 10.5 % in 2008, compared to around 2 % in Euroland.

PAMC's strategy will remain unchanged. Kabisch explains: "The key pillar of PAMC's commercial success remains the management of the assets of PICC Group, but PAMC will also offer its services to customers outside the Group in the future. To do so, it requires additional permits from the Chinese supervisory authorities, which it is well on the way to attaining. The more than 50-year partnership between the Munich Re Group and the PICC Group is a major advantage when it comes to continuing the expansion of PAMC's business activities and further intensifying our relationship."

MEAG MUNICH ERGO AssetManagement GmbH in Munich is the asset manager for Munich Re and ERGO Insurance Group. With offices in New York and Hong Kong, MEAG has an international orientation and also manages the assets of clients outside the Munich Re Group. MEAG currently manages assets to the value of around € 182 billion, of which around € 13 billion are held in real estate.

Munich, 29 October 2007

Contact:
Dr. Josef Wild
Telephone: +49 89 | 2489 - 2072
Fax: +49 89 | 2489 - 2075
E-mail: JWild@meag.com