Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Q3 2024 Earnings Presentation
44 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Nov 7, 2024
Slide 1: Quarterly Statement as at 30 September 2024
Munich Re Group Quarterly Statement as at 30 September 2024 7 November 2024 Christoph Jurecka (CFO)
Slide 2: Agenda
Quarterly Statement as at 30 September 2024 Agenda 01 02 03 04 05 Additional Munich Re ERGO Reinsurance Outlook information Quarterly Statement as at 30 September 2024 7 November 2024 2
Slide 3: Munich Re
01 Munich Re Source: Munich Re
Slide 4: Munich Re expects to exceed €5bn profit target this year
Munich Re – Financial highlights Munich Re expects to exceed €5bn profit target this year – increasing earnings diversification pays off Net result Total technical result Net financial result Operating result €m €m €m €m 6,956 6,189 6,333 4,692 5,117 3,593 930 1,169 1,651 2,221 883 1,194 1,776 21 75
Slide 5: Capital position
Munich Re – Financial highlights Capital position Equity Capitalisation €m €bn 11.2% 10.9% Equity 31.12.2023 29,772 Change in Q3 9.2% Senior debt Net result 4,692 930 8.8% Subordinated debt Changes 0.3 0.3 0.2 0.3 Dividend –2,006 0 4.8 6.2 6.2 CSM (after tax) 4.7 Share buy-backs –1,225 –583 19.2 20.
Slide 6: Investments
Munich Re – Investments Investments Q3 2024 Investment portfolio1 % Government/Semi-government bonds2 31 (33) Alternative investments 16 (16) Covered bonds/Mortgage loans 14 (15) Equities3 4 (5) Total Corporate bonds 15 (14) Business-related participations 2 (3) €241bn Emerging markets government bo
Slide 7: Investment result
Munich Re – Investments Investment result €m Q3 2024 Return1 9M 2024 Return1 9M 2023 Return1 Regular income 2,026 3.5% 6,114 3.6% 5,162 3.2% Write-ups/write-downs –138 –0.2% –248 –0.1% –64 0.0% Change in expected credit loss (ECL) 32 0.1% 10 0.0% –95 –0.1% Disposal gains/losses –115 –0.2% –316 –0.2%
Slide 8: Net financial result
Munich Re – Investments Net financial result Q3 Q3 9M 9M ▪ Investment result benefited from strong €m 2024 2023 2024 2023 regular income and positive developments in equity markets Investment result 2,091 760 5,724 2,969 ▪ Negative currency impact on net financial Currency result –383 309 –277 208 r
Slide 9: ERGO
02 ERGO Source: Munich Re
Slide 10: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Key ▪ Q3: Total technical result of life and long-term Total technical result health business as well as … €m ▪ Q3: CSM release in life and long-term messages health at €195m ▪ … short-term business (PAA) largely in line 736 819 with expectations ▪ Q3: Short-term bu
Slide 11: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Total technical result Q3 9M ▪ 2.0% CSM release in line with current €m 2024 2024 expectation of ~2% per quarter Release of CSM 195 601 ▪ Insurance service result from PAA business still slightly impacted by elevated claims, but result largely in Release of risk adj
Slide 12: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany CSM/RA CSM €m CSM1 RA1 ▪ New contracts added in life new book CSM/RA and long-term health – run-off of life 31.12.2023 9,568 539 back book and strategic shift in health New contracts to short-term business resulted in added 128 6 relatively low new contracts added A
Slide 13: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Key ▪ Q3: Overall, solid operating performance Total technical result above that of prior year €m ▪ Q3: Total technical result and messages 474 466 ▪ Q3: Total technical result impacted by combined ratio driven by continuously high claims inflation in motor ▪ High
Slide 14: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Insurance revenue (gross) in 9M 2024 (9M 2023) Combined ratio €m % 59.1 29.9 Total 59.9 26.3 € 3,529 m (€3,346m) 61.5 24.5 Loss ratio Expense ratio Fire/property 960 Legal protection 345 98.5 97.5 Liability 668 Marine 192 88.1 88.2 88.4 86.0 81.2 84.4 Motor 656 Ot
Slide 15: ERGO International
ERGO ERGO International Key ▪ Q3: Total technical result burdened by Total technical result nat cat claims of €52m in Poland and €m ▪ CR of 96.1% in Q3 due to messages Austria 470 ▪ Elevated nat cat losses in Poland 436 and Austria (Storm Boris) ▪ Q3/9M: Life and health – technical ▪ Unfavourable cl
Slide 16: ERGO International
ERGO ERGO International Property- Combined ratio % casualty1 95.4 96.1 92.4 90.0 95.0 88.4 103.0 102.2 94.7 91.7 78.8 90.4 88.1 87.9 89.5 89.5 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 9M Poland Legal Greece Baltics Austria Thailand Spain 2022 2023 2023 2023 2023 2024 2024 2024 2024 protection Life and Total technica
Slide 17: Reinsurance
03 Reinsurance Source: Munich Re
Slide 18: Life and health reinsurance
Reinsurance Life and health reinsurance Key ▪ Exceeded full-year guidance for the total Total technical result technical result after nine months €m ▪ Insurance service result supported messages ▪ Ongoing favourable biometric experience in 1,632 by strong new business and positive experience varianc
Slide 19: Life and health reinsurance
Reinsurance Life and health reinsurance Total technical result Q3 9M ▪ Release of CSM and RA in line with €m 2024 2024 expectation, supported by very strong new business early in the year Release of CSM 247 770 ▪ Positive experience adjustments in all lines of business Release of risk adjustment (no
Slide 20: Life and health reinsurance
Reinsurance Life and health reinsurance CSM/RA CSM €m CSM1 RA1 ▪ Pleasing growth driven by high new CSM/RA business contribution, including 31.12.2023 12,275 3,480 large transactions in North America in H1 New contracts ▪ Operating changes included uplift from added 1,771 331 parameter update in Q1
Slide 21: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Key ▪ Revenue growth of 5.0% vs. 9M 2023 Total technical result messages ▪ Elevated combined ratio of 90.5% in €m ▪ Major losses of 23.1% in Q3 were 3,679 3,350 higher than average expectation Q3 2024 driven by higher-than-average major-loss expenditure from
Slide 22: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Combined ratio Q3 9M Ø Annual % 2024 2024 expectation Change in 2023 57.3 12.6 15.4 85.2 loss component 0.1 –0.4 ~0.0 9M 2024 50.6 15.9 15.5 82.0 Major losses1 23.1 15.9 ~14.0 Q3 2024 52.1 23.1 15.2 90.5 Nat cat1 19.9 12.2 ~10.0 Basic losses Major losses Exp
Slide 23: Outlook
04 Outlook Source: Munich Re
Slide 24: Outlook 2024
Munich Re Outlook 2024 Group Insurance revenue Net result Return on investment ~€61bn >€5.0bn >2.8% (prev. ~€59bn) (prev. ~€5bn) ERGO Insurance revenue Net result Combined ratio Combined ratio P-C Germany International ~€21bn ~€0.8bn ~89% ~92% (prev. ~€20bn) (prev. ~87%) (prev. ~90%) Reinsurance Ins
Slide 25: Additional information
05 Additional information Source: Munich Re
Slide 26: Actual vs. analysts’ consensus
Additional information Actual vs. analysts’ consensus Operating result – Actual vs. analysts’ consensus1 KPIs – Actual vs. analysts’ consensus1 €m Q3 2024 Consensus Delta €m Q3 2024 Consensus Impact2 Life and health reinsurance 465 545 –80 Total technical result 428 444 –16 Property-casualty reinsur
Slide 27: Segment income statement
Additional information Segment income statement Q3 2024 Life and health Property-casualty ERGO ERGO ERGO Total €m reinsurance reinsurance L&H Germany P-C Germany International Q3 2024 Insurance revenue from insurance contracts issued 2,936 7,288 2,574 1,210 1,487 15,496 Insurance service result 366
Slide 28: Segment income statement
Additional information Segment income statement 9M 2024 Life and health Property-casualty ERGO ERGO ERGO Total €m reinsurance reinsurance L&H Germany P-C Germany International 9M 2024 Insurance revenue from insurance contracts issued 8,924 21,033 7,520 3,529 4,504 45,510 Insurance service result 1,1
Slide 29: Revenue development
Additional information Revenue development 9M 2024 Insurance revenue (gross) Segment breakdown €m €bn Revenue Share Life and health reinsurance 8.9 20 % 9M 2023 42,908 Property-casualty reinsurance 21.0 46 % Total €45.5bn ERGO Life and Health Germany 7.5 17 % Foreign ERGO Property-casualty Germany 3
Slide 30: ERGO International – Insurance revenue (gross)
Additional information ERGO International – Insurance revenue (gross) 9M 2024 Property-casualty Life and health Total Total 2,844m € €1,660m 1 Short-term health business. 2 Travel business. Quarterly Statement as at 30 September 2024 7 November 2024 30
Slide 31: Combined ratios
Additional information Combined ratios Property-casualty ERGO ERGO €m reinsurance P-C Germany International1 Q3 2024 9M 2024 Q3 2024 9M 2024 Q3 2024 9M 2024 Insurance revenue from insurance contracts issued 7,288 21,033 1,210 3,529 1,192 3,620 Insurance revenue ceded from reinsurance contracts held
Slide 32: Total comprehensive income
Additional information Total comprehensive income Q3 2024 Reinsurance ERGO ERGO ERGO Munich Re €m total L&H Germany P-C Germany International Q3 2024 Total comprehensive income 1,162 31 51 121 1,364 Thereof net result 766 73 68 23 930 Thereof change in OCI (after tax) 396 –42 –17 98 434 Thereof from
Slide 33: CSM and risk adjustment by segment
Additional information CSM and risk adjustment by segment 9M 2024 vs. Risk vs. €m CSM 31.12.2023 (%) adjustment 31.12.2023 (%) Life and health reinsurance 13,511 10.1% 3,589 3.1% Property-casualty reinsurance 239 172.6% 383 –3.9% ERGO L&H Germany 9,789 2.3% 639 18.7% ERGO P-C Germany 384 –0.2% 8
Slide 34: Loss component by segment
Additional information Loss component by segment 9M 2024 Loss vs. €m component 31.12.2023 (%) Life and health reinsurance 228 2.4% Property-casualty reinsurance 502 –12.5% ERGO L&H Germany 20 3.6% ERGO P-C Germany 110 –42.5% ERGO International 258 –7.2% Total 1,119 –13.0% Net of reinsurance. Quart
Slide 35: Return on equity
Additional information Return on equity Reinsurance ERGO Munich Re Group €m 30.9. 30.6. 31.12. 30.9. 30.6. 31.12. 30.9. 30.6. 31.12. 2024 2024 2023 2024 2024 2023 2024 2024 2023 Adjusted equity 26,870 26,677 25,231 5,041 4,939 5,138 31,911 31,616 30,369 Q3 2024 average adjusted equity 26,774 4,990 3
Slide 36: Return on investment by asset class and segment
Additional information Return on investment by asset class and segment 9M 2024 Regular Write-ups/-downs, Disposal Fair value Other ᴓ Market %1 income change in ECL result change inc./exp. RoI value (€m) Fixed income 3.4 0.0 –0.3 0.0 0.0 3.1 183,322 Equities 3.5 0.0 0.0 11.6 0.0 15.1 11,430 Affiliate
Slide 37: Investment result – Reinsurance
Additional information Investment result – Reinsurance Q3 2024 Life and health reinsurance €m Q3 2024 Return1 9M 2024 Return1 9M 2023 Return1 Regular income 214 4.3% 621 4.0% 530 3.4% Write-ups/write-downs –5 –0.1% –17 –0.1% 8 0.1% Change in expected credit loss (ECL) 4 0.1% 0 0.0% 1 0.0% Disposal g
Slide 38: Investment result – ERGO
Additional information Investment result – ERGO Q3 2024 Life and Health Germany €m Q3 2024 Return1 9M 2024 Return1 9M 2023 Return1 Regular income 854 3.3% 2,597 3.3% 2,492 3.3% Write-ups/write-downs –1 0.0% –7 0.0% 1 0.0% Change in expected credit loss (ECL) 4 0.0% 11 0.0% –54 –0.1% Disposal gains/l
Slide 39: Investment result – ERGO
Additional information Investment result – ERGO Q3 2024 International €m Q3 2024 Return1 9M 2024 Return1 9M 2023 Return1 Regular income 99 2.1% 284 2.0% 238 1.8% Write-ups/write-downs 0 0.0% 0 0.0% 0 0.0% Change in expected credit loss (ECL) 0 0.0% 1 0.0% –2 0.0% Disposal gains/losses 0 0.0% 83 0.6%
Slide 40: Duration investment portfolio
Additional information Duration investment portfolio 9M 2024 Portfolio duration1 Assets Liabilities Reinsurance 3.7 (4.7) 3.7 (4.5) ERGO 7.7 (7.8) 7.1 (7.1) Munich Re 6.0 (6.5) 6.0 (6.2) DV011,2 €m Assets Liabilities net Reinsurance 30 (35) 21 (26) 9 ERGO 86 (85) 86 (83) 0 Munich Re 116 (120) 107 (1
Slide 41: Changes to shares in circulation
Additional information Changes to shares in circulation Shares 31.12. Acquisition of own Retirement of own 30.9. Weighted average number of shares in circulation (millions) 2023 shares in 9M 2024 shares in 9M 2024 2024 (millions) 139.4 136.0 132.4 133.3 Shares in 134.6 –2.7 – 131.9 circulation Treas
Slide 42: Financial calendar
Financial calendar 2025 Balance sheet media conference for 2024 financial statements Analysts’ and investors’ call Quarterly Statement Quarterly Statement as at 31 March 2025 as at 30 September 2025 26 February 13 May 11 November 30 April 8 August 11 December Half-Year Financial Report Annual Genera
Slide 43: For more information, please contact
For more information, please contact Investor Relations team Christian Becker-Hussong Thorsten Dzuba Christine Franziszi Head of Investor & Rating Agency Relations Tel.: +49 (89) 3891-8030 Tel.: +49 (89) 3891-3875 Tel.: +49 (89) 3891-3910 Email: tdzuba@munichre.com Email: cfranziszi@munichre.com Ema
Slide 44: Disclaimer
Disclaimer This presentation was prepared exclusively for investors in financial instruments issued by Munich Re and contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could