Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München — Q1 2024 Earnings Presentation
54 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 8, 2024
Slide 1: Quarterly statement as at 31 March 2024
Munich Re Group Quarterly statement as at 31 March 2024 8 May 2024 Christoph Jurecka (CFO)
Slide 2: Agenda
Quarterly Statement as at 31 March 2024 Agenda 01 02 03 04 05 Additional Munich Re ERGO Reinsurance Outlook information Quarterly Statement as at 31 March 2024 8 May 2024 2
Slide 3: Munich Re
01 Munich Re Source: Munich Re
Slide 4: Good start to the year with earnings above pro-rata guidance
Munich Re – Financial highlights Q1 2024 Good start to the year with earnings above pro-rata guidance Better-than-expected operating performance in all lines; favourable capital markets Net result Total technical result Net financial result Operating result €m €m €m €m 2,785 2,928 2,140 1,809 1,768
Slide 5: Capital position
Munich Re – Financial highlights Q1 2024 Capital position Equity Capitalisation €m €bn 10.0% Equity 31.12.2023 29,772 9.2% 8.8% Senior debt Net result 2,140 Changes 0.3 Subordinated debt 0.3 0.3 4.8 Dividend 0 4.7 CSM (net of tax) 4.7 Share buy-backs –313 19.2 20.7 18.0 Equity Unrealised gains/losse
Slide 6: Investments
Munich Re – Investments Investments Q1 2024 Investment portfolio1 % Government/semi-government bonds2 32 (33) Alternative investments 16 (16) Covered bonds/mortgage loans 15 (15) Equities3 4 (5) Total Corporate bonds 15 (14) Business-related participations 3 (3) €236bn Emerging-market government bon
Slide 7: Investment result
Munich Re – Investments Investment result Q1 Q1 €m 2024 Return1 2023 Return1 Regular income 1,807 3.2% 1,601 3.0% Write-ups/write-downs –48 –0.1% –28 –0.1% Change in expected credit loss (ECL) 25 0.0% –38 –0.1% Disposal gains/losses –55 –0.1% 166 0.3% Fair value change 586 1.0% 74 0.1% Other income/
Slide 8: Net financial result
Additional information – Investments Net financial result Q1 Q1 ▪ Investment result benefits from high €m 2024 2023 interest rates and positive fair value changes in equities Investment result 2,163 1,612 ▪ Largest share of the positive currency Currency result 176 –145 result in P-C reinsurance ▪ P
Slide 9: ERGO
02 ERGO Source: Munich Re
Slide 10: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Key ▪ Total technical result of life and long-term Total technical result health business in line with expectation €m messages ▪ CSM release in life and long- ▪ Elevated claims expenses in short-term 258 term health at €211m health and travel business 225 ▪ Short-te
Slide 11: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Total technical result Q1 ▪ 2.1% CSM release in line with current €m 2024 expectation of ~2% per quarter Release of CSM 211 ▪ Insurance service result from PAA business negatively affected by claims development in short-term health and Release of risk adjustment (no
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 result in added 45 2 relatively low new contracts added Accr
Slide 13: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Key ▪ Total technical result at strong level Total technical result supported by low large losses and good €m messages operating performance ▪ Total technical result and 206 177 combined ratio in Q1 2024 ▪ Very high net result of €150m also driven driven by by exc
Slide 14: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Insurance revenue (gross) in Q1 2024 (Q1 2023) Combined ratio €m % 2023 59.1 29.9 88.9 Total Q1 2023 53.8 27.3 81.2 € 1,149 m (€1,117m) Q1 2024 57.5 26.8 84.4 Loss ratio Expense ratio Fire/property 301 Legal protection 113 98.5 97.5 Motor 218 Marine 68 88.1 88.2 8
Slide 15: ERGO International
ERGO ERGO International Key ▪ Strong total technical result in P-C driven by Total technical result excellent claims development and profitable €m messages growth ▪ Excellent combined ratio of 89.5% 179 (95.4%) driven by: ▪ Good technical development in life/health ▪ Benign large loss development 97
Slide 16: ERGO International
ERGO ERGO International Property- Combined ratio % casualty1 114.8 92.0 91.6 102.1 92.0 86.8 87.1 86.1 93.3 95.4 90.4 88.1 87.9 89.5 89.5 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Poland Legal Greece Baltics Austria Thailand Spain 2022 2022 2022 2023 2023 2023 2023 2024 protection Life and Total technical result – Q1
Slide 17: Reinsurance
03 Reinsurance Source: Munich Re
Slide 18: Life and health reinsurance
Reinsurance Life and health reinsurance Key ▪ Very strong total technical result, Total technical result exceeding pro-rata guidance €m messages ▪ Insurance service result supported ▪ Favourable biometric experience and 586 by strong new business and positive positive FX impact experience variances
Slide 19: Life and health reinsurance
Reinsurance Life and health reinsurance Total technical result Q1 ▪ Release of CSM and RA in line €m 2024 with expectation, supported by strong new business Release of CSM 251 ▪ Positive experience adjustments in all lines of business Release of risk adjustment (non-PAA) 71 ▪ Very good development o
Slide 20: Life and health reinsurance
Reinsurance Life and health reinsurance CSM/RA CSM €m CSM1 RA1 ▪ High new business contribution, including CSM/RA large transactions in North America 31.12.2023 12,275 3,480 ▪ Operating changes include shift from RA New contracts to CSM added 1,269 247 ▪ Positive FX impact Accretion of interest 77 1
Slide 21: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Key ▪ Revenue growth of 5.1% vs. Q1 2023 Total technical result messages ▪ Very pleasing combined ratio of 75.3% €m ▪ Below-average major losses of 9.9% supported by benign major losses driven by benign nat cats, while Q1 1,616 2023 was impacted by earthquak
Slide 22: Property-casualty reinsurance
Additional information: Property-casualty reinsurance Property-casualty reinsurance Combined ratio Q1 Ø Annual % 2024 expectation Change in 2023 57.3 12.6 15.4 85.2 loss component –0.1 ~0.0 Q1 2023 55.7 16.4 14.4 86.5 Major losses1 9.9 ~14.0 Q1 2024 50.2 9.9 15.2 75.3 Nat cat1 3.5 ~10.0 Basic losses
Slide 23: April renewals
Reinsurance April renewals Total property-casualty book1 Regional allocation of April renewals % % Europe 11 Latin America 7 Total Total Worldwide 19 North America 13 €34bn €2.5bn Asia/Pacific/Africa 50 Nat cat shares of renewable portfolio2 % January renewals 45 January 14 86 April renewals 9 April
Slide 24: April renewals – Continued trend of profitable growth, high portfolio quality maintained
Reinsurance April renewals – Continued trend of profitable growth, high portfolio quality maintained Price Renewals 2020–2023 April Selective growth and portfolio optimisation change1 % renewals 2024 ▪ Another good renewal in an ongoing attractive market 3.1 environment – strong pricing improvements
Slide 25: Regional allocation of July renewals
Reinsurance Regional allocation of July renewals Outlook ▪ Regional focus on USA and Latin America ▪ Comparatively high Total nat cat share of ~32% €3.6bn North America 28% Australia/New Zealand 9% Latin America 17% Europe 4% Asia/Pacific/Africa 9% Worldwide 32% Quarterly Statement as at 31 March 20
Slide 26: Outlook
04 Outlook Source: Munich Re
Slide 27: Outlook 2024
Outlook 2024 Group Insurance revenue Net result Return on investment ~€59bn ~€5.0bn >2.8% ERGO Insurance revenue Net result Combined ratio Combined ratio P-C Germany International ~€20bn ~€0.8bn ~87% ~90% Reinsurance Insurance revenue Net result Combined ratio Total technical result Property-casualt
Slide 28: Additional information
05 Additional information Source: Munich Re
Slide 29: Actual vs. analysts' consensus
Additional information Actual vs. analysts’ consensus Operating result – Actual vs. analysts’ consensus1 KPIs – Actual vs. analysts’ consensus1 €m Q1 2024 Consensus Delta €m Q1 2024 Consensus Impact2 Life and health reinsurance 707 464 243 Total technical result 586 383 203 Property-casualty reinsur
Slide 30: Segment income statement
Additional information Segment income statement Q1 2024 Life and health Property-casualty ERGO ERGO ERGO Total €m reinsurance reinsurance L&H Germany P-C Germany International Q1 2024 Insurance revenue from insurance contracts issued 3,027 6,831 2,532 1,149 1,523 15,061 Insurance service result 367
Slide 31: April renewals
Additional information April renewals Selective growth and portfolio optimisation % 100 –17.9 82.1 +6.1 +17.8 106.1 €m 2,484 –444 2,041 +152 +444 2,637 Change in premium +6.1% Thereof price movement1 ~ –1.0% Thereof change in exposure for our share +7.1% Total renewable Cancelled Renewable Increase
Slide 32: Revenue development
Additional information Revenue development Q1 2024 Insurance revenue (gross) Segmental breakdown €m €bn Revenue Share Life and health reinsurance 3.0 20 % Q1 2023 14,273 Property-casualty reinsurance 6.8 45 % Total €15.1bn ERGO Life and Health Germany 2.5 17 % Foreign ERGO Property-casualty Germany
Slide 33: ERGO International – Insurance revenue (gross)
Additional information: ERGO ERGO International – Insurance revenue (gross) Q1 2024 Property-casualty Life and health Q1 2024 Life Q1 2024 Poland 551 Austria 40 Legal protection 118 Belgium 30 Baltic states 73 Poland 29 Total Total Thailand 70 Baltic states 16 952m € €571m Greece 67 Total 115 Austri
Slide 34: Combined ratios
Additional information Combined ratios Q1 2024 Property-casualty ERGO ERGO €m reinsurance P-C Germany International1 Insurance revenue from insurance contracts issued 6,831 1,149 1,219 Insurance revenue ceded from reinsurance contracts held –286 –15 –58 Insurance revenue (net) 6,545 1,134 1,161 Insu
Slide 35: Total comprehensive income
Additional information Total comprehensive income Q1 2024 Reinsurance ERGO ERGO ERGO Munich Re €m Total L&H Germany P-C Germany International Q1 2024 Total comprehensive income 1,749 –194 148 36 1,739 Thereof net result 1,888 36 150 65 2,140 Thereof change in OCI (after tax) –139 –230 –2 –30 –401 Th
Slide 36: CSM and risk adjustment by segment
Additional information CSM and risk adjustment by segment Q1 2024 vs. Risk vs. €m CSM 31.12.2023 (%) adjustment 31.12.2023 (%) Life and health reinsurance 13,597 10.8% 3,461 –0.5% Property-casualty reinsurance 169 92.7% 374 –6.1% ERGO L&H Germany 9,841 2.9% 635 17.9% ERGO P-C Germany 474 23.1% 8
Slide 37: Loss component by segment
Additional information Loss component by segment Q1 2024 Loss vs. €m component 31.12.2023 (%) Life and health reinsurance 205 –7.7% Property-casualty reinsurance 572 –0.3% ERGO L&H Germany 19 –3.7% ERGO P-C Germany 155 –19.0% ERGO International 267 –4.3% Total 1,218 –5.3% Net of reinsurance. Quart
Slide 38: Return on equity
Additional information Return on equity Q1 2024 Reinsurance ERGO Munich Re Group €m 31.3.2024 31.12.2023 31.3.2024 31.12.2023 31.3.2024 31.12.2023 Adjusted equity 27,030 25,231 5,194 5,138 30,433 30,369 Average adjusted equity 26,131 5,166 31,297 Net result 1,888 252 2,140 RoE 28.9% 19.5% 27.3% Quar
Slide 39: Investment portfolio (economic view) – Government bonds
Additional information – Investments Investment portfolio (economic view) Government/semi-government bonds Rating structure Regional breakdown % % Policyholder participation Total AAA 30 (31) BB 0 (0) Without With 31.3.2024 31.12.2023 US 23 2 26 25 Total AA 56 (55) NR 1 (1) Germany 3 17 20 20 €76bn
Slide 40: Investment portfolio (economic view) – Covered bonds/mortgage loans
Additional information – Investments Investment portfolio (economic view) Covered bonds/mortgage loans Rating structure covered bonds Regional breakdown % % 31.3.2024 31.12.2023 Germany 50 48 AAA 76 (76) BBB 0 (0) France 14 14 Total AA 22 (23) NR 1 (1) UK 8 7 €26bn A 1 (1) Netherlands 5 6 Norway 3 3
Slide 41: Investment portfolio (economic view) – Corporate bonds
Additional information – Investments Investment portfolio (economic view) Corporate bonds (including bank bonds) Rating structure Sector breakdown % % 31.3.2024 31.12.2023 Banks 25 25 AAA 4 (4) BB 9 (9) Utilities 12 12 AA 8 (8) B and lower 4 (4) Financial services 9 9 Total Industrial goods & servic
Slide 42: Investment portfolio (economic view) – Emerging markets government bonds
Additional information – Investments Investment portfolio (economic view) Emerging markets government bonds Rating structure Regional breakdown % % Policyholder participation Total AA 1 (1) BB 17 (17) Without With 31.3.2024 31.12.2023 A 42 (44) B and lower 2 (2) Poland 19 8 27 27 Total €12bn BBB 36
Slide 43: Investment portfolio (economic view) – ABS/MBS
Additional information – Investments Investment portfolio (economic view) ABS/MBS Rating structure Regional breakdown % % 31.3.2024 31.12.2023 AAA 37 (43) BBB 1 (1) Europe 54 54 Total AA 54 (50) NR 1 (1) US 33 33 €7bn A 7 (5) Rest of world 13 12 Maturity structure Portfolio composition % % 0–1 years
Slide 44: Investment portfolio (economic view) – Alternative investments
Additional information – Investments Investment portfolio (economic view) Alternative investments Alternative investments1 % 31.3.2024 31.12.2023 Real estate2 – Regional breakdown (%) Germany 68 69 Real estate 40 (42) US 12 11 Total Netherlands 5 5 Illiquid equity 38 (36) €39bn France 3 3 Illiquid d
Slide 45: Investment portfolio (economic view) – Equities
Additional information – Investments Investment portfolio (economic view) Equities Total equities €9bn 31.3.2024 31.12.2023 Regional breakdown (%) Germany 25 23 US 20 15 4.5 4.6 UK 13 14 4.3 4.4 4.0 Switzerland 8 11 France 8 7 Other 26 30 3.7 3.3 3.4 Sector breakdown (%) 3.2 2.8 Technology 15 13 Ind
Slide 46: Return on investment by asset class and segment
Additional information – Investments Return on investment by asset class and segment Q1 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 3.3 0.1 –0.2 –0.2 0.0 3.0 181,148 Equities 2.1 0.0 0.0 22.0 0.0 24.1 1
Slide 47: Investment result – Reinsurance
Additional information Investment result – Reinsurance Q1 2024 Life and health reinsurance €m Q1 2024 Return1 Q1 2023 Return1 Regular income 197 3.8% 174 3.2% Write-ups/write-downs –5 –0.1% –1 0.0% Change in expected credit loss (ECL) 1 0.0% 1 0.0% Disposal gains/losses -9 –0.2% 8 0.2% Fair value ch
Slide 48: Investment result – ERGO
Additional information Investment result – ERGO Q1 2024 Life and Health Germany €m Q1 2024 Return1 Q1 2023 Return1 Regular income 787 3.0% 782 3.1% Write-ups/write-downs –4 0.0% –1 0.0% Change in expected credit loss (ECL) 9 0.0% –46 –0.2% Disposal gains/losses –26 –0.1% –29 –0.1% Fair value change
Slide 49: Investment result – ERGO International
Additional information Investment result – ERGO Q1 2024 International €m Q1 2024 Return1 Q1 2023 Return1 Regular income 66 1.4% 72 1.6% Write-ups/write-downs 0 0.0% 0 0.0% Change in expected credit loss (ECL) 0 0.0% –1 0.0% Disposal gains/losses 14 0.3% –3 –0.1% Fair value change 5 0.1% 17 0.4% Othe
Slide 50: Duration investment portfolio
Additional information Duration investment portfolio Q1 2024 Portfolio duration1 Assets Liabilities Reinsurance 4.1 (4.7) 4.0 (4.5) ERGO 7.7 (7.8) 6.9 (7.1) Munich Re 6.2 (6.5) 6.0 (6.2) DV011,2 €m Assets Liabilities net Reinsurance 32 (35) 22 (26) 10 ERGO 85 (85) 80 (83) 5 Munich Re 117 (120) 103 (
Slide 51: Changes to shares in circulation
Additional information: Shareholder information Changes to shares in circulation Shares 31.12. Acquisition of own Retirement of own 31.3. Weighted average number of shares in circulation (millions) 2023 shares in Q1 2024 shares in Q1 2024 2024 (millions) 140.1 139.4 136.0 134.0 Shares in 134.6 –0.8
Slide 52: Financial calendar
Financial calendar 2024 Annual Report (Group) Annual Report (Company) Quarterly Statement Quarterly Statement as at 31 March 2024 as at 30 September 2024 14 March 8 May 7 November 25 April 8 August Annual General Meeting Half-Year Financial Report 2024 as at 30 June 2024 Quarterly Statement as at 31
Slide 53: 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 54: 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