Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München — FY2023 Earnings Presentation
105 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Feb 27, 2024
Slide 1: Analysts' and Investors' Call 2024
Munich Re Group Analysts’ and Investors’ Call 2024 27 February 2024 Please note: Presentation based on 2023 preliminary figures
Slide 2: Agenda
Analysts’ and Investors’ Call 2023 Agenda 01 02 03 Munich Re Group finance and risk Additional information Analysts’ and Investors’ Call 2024 27 February 2024 2
Slide 3: Munich Re
01 Munich Re Source: Munich Re
Slide 4: Munich Re achieved a strong result in 2023
Munich Re achieved a strong result in 2023 Financial performance Capital repatriation Exceeding guidance with a net result of Rebasing payout to higher earnings level: €4.6bn – strong underlying performance DPS lifted to €151, across all segments, while strengthening €1.5bn share buy-back2 balance s
Slide 5: Delivery on our Ambition
Delivery on our Ambition Ambition Achievements Total shareholder return (TSR)5 2025 in 2023 01.01.2020 – 31.12.2023 (%) 68.9 RoE 14–16% 15.7% 47.0 44.4 EPS growth1 ≥5% +37.8 %2 37.5 36.3 32.6 15.1 DPS growth1 ≥5% +29.3%3 Solvency II ratio 175–220% 267%4 –14.2 Munich Re Peer group 1 CAGR – compound a
Slide 6: Changes in the general environment
Changes in the general environment Tailwind benefitted earnings Munich Re Headwind well manageable Munich Re Prolonged hard market Expanded business Inflationary environment Reflected higher Global Property Catastrophe Rate-On-Line Index1 in an attractive Consumer price inflation (%)2 claims costs 3
Slide 7: Ambition 2025
Ambition 2025 % 15.7 RoE improvement 13.5 12.6 Profitability well above cost of capital 3.8 € 14–16% 15.0 Capital repatriation CAGR Shareholders participate 2020 2021 2022 2023 15.2% 9.8 well above plan in strong earnings growth € 33.9 EPS growth Profitable expansion DPS growth ≥5% CAGR 2020 … 2023
Slide 8: Return on Equity improvement
Return on Equity improvement Efficient capital management Leveraging strong market position Attractive insurance market environment makes it possible to earn returns above cost of equity Flexibility to allocate capital Munich Re successfully expands business, Strong balance sheet according to all me
Slide 9: Capital repatriation
Capital repatriation Total payout1 Dividends vs. share buy-backs 2014–2023 ▪ Capital repatriation well-funded by high DPS amount of German GAAP distributable earnings 15.0 € and sound solvency position Dividends Profit participation 7,8 €14.5bn ▪ More than 85% of IFRS net earnings paid out to shareh
Slide 10: EPS growth
EPS growth Core P-C reinsurance 01 Prolonged cycle supports profitable business growth Global Specialty Insurance (GSI) 02 Powerful player in less cyclical specialty insurance Life & health reinsurance Less cyclical and less volatile 03 business segments are expected to Strong earnings trajectory be
Slide 11: January renewals
01 Core P-C reinsurance January renewals Price Renewals 2020–2023 January Portfolio profitability remains % at the same high level change1 3.1 renewals 20242 2.3 ▪ Another good renewal in an ongoing attractive market 1.8 environment – strong pricing improvements achieved in past years fully preserve
Slide 12: January renewals
01 Core P-C reinsurance January renewals Volume change Property XL % Nat cat continues to provide very attractive margins 25 ▪ Munich Re continues to have capacity within its overall risk appetite for cat business in a healthy market environment 20 ▪ Leveraging our strong balance sheet while benefit
Slide 13: Growing Global Specialty Insurance
02 Global Specialty Insurance (GSI) Growing Global Specialty Insurance Growing commercial insurer in North Achievements Ambition 2025 America with emphasis on small and in 2023 Based on IFRS 4 MR Specialty mid-market Insurance Strong footprint in niche personal lines ▪ C-suite positions for Premium
Slide 14: Life and health reinsurance
03 L&H reinsurance Life and health reinsurance Total technical result €bn New Profitable new business growth 1.43 ~1.45 business gradually increasing stock of CSM High earnings contribution of more than ~1.0 In-force €1bn p.a. through release of CSM and RA Ongoing strong demand leading to FinMoRe si
Slide 15: ERGO
04 ERGO ERGO Net result €bn ~0.8 0.7 Continuous top-line growth in core markets 0.6 Underwriting excellence and superior customer experience Pursuing digital leadership through application of new technologies 2022 2023 Outlook 2024 Analysts’ and Investors’ Call 2024 27 February 2024 15
Slide 16: ERGO
04 ERGO ERGO ▪ Organic growth in Germany, based on comprehensive omni-channel approach Continuous top ▪ Determined tariff adjustments accompanied by growth initiatives, e.g., in Polish and Baltics p-c line growth in core business as well as Belgian and Spanish health insurance markets ▪ Non-organic
Slide 17: ERGO International
04 ERGO ERGO International GWP growth1 CAGR 2020–2023, % 17 ▪ Profitable growth above market – 12 top 3 market position among private p-c insurers ▪ Powerful and broad distribution platform India non-life ERGO Market including strong bank sales partnership Expansion in Asia ▪ Continued strong organi
Slide 18: Increasing sustainable investment result
Increasing sustainable investment result Beneficial market environment Active investment management Yield of fixed-income portfolio benefits from higher interest rates Indicative return contribution to Group RoI (bps) 5% 30 Reinvestment 4% yield 20 3% Running 10 yield 2% 0 1% 0% –10 -10 2020 2021 20
Slide 19: Munich Re leverages the potential of artificial intelligence
Munich Re leverages the potential of artificial intelligence Reinsurance ERGO Munich Re already ▪ Improved decision making in the core ▪ Improved operational efficiency creates significant Tangible ▪ Retention of existing business ▪ Claims savings value by utilising earnings impact ▪ Generation of n
Slide 20: Delivery on climate ambition through emission reductions
Delivery on climate ambition through emission reductions Ambition Achievements GHG emission reduction1 2025 in 2023 Total –25 to –29% –47% Assets2 Financed GHG Thermal coal –35% –54% emmissions3 Oil and gas –25% –55% Thermal coal –35% Coal-fired power plants –41% Liabilities4 Financed GHG Thermal co
Slide 21: Gender ambition 2025
Gender ambition 2025 Share of women at management level Achievements in 2023 Munich Re Group increased Growth representation from 38.5% 38.5 39.5 40% in 2022 to 39.5% in 2023 37.8 35.1 Representation of women in talent Talent programmes has increased from 46.1% in 2022 to 48.4% in 2023 Diversity, In
Slide 22: 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 23: Group finance and risk
02 Group finance and risk Source: Munich Re
Slide 24: Financial results 2023
Group finance and risk Financial results 2023 IFRS net result ▪ Very pleasing performance across all segments contributes to net result above guidance despite significant strengthening of balance sheet €4.6bn ▪ Better-than-expected investment result (RoI: 2.5%) includes deliberate (€5.3bn) fixed-inc
Slide 25: Value- and risk-based steering approach
Group finance and risk Value- and risk-based steering approach IFRS Diversification of earnings ▪ Earnings contribution from less volatile business segments (ERGO, GSI, L&H reinsurance) … Target ▪ … cushions impact of severe outlier losses in single years in P&C RI ▪ Steadily increasing earnings tra
Slide 26: Macroeconomic sensitivity of P&L – Example: interest rates
Group finance and risk Macroeconomic sensitivity of P&L – Example: interest rates IFRS Sensitivity of net result from 100bps parallel downward shift in interest rates ~€5bn ▪ Earnings diversification dampens P&L effect of lower interest rates ▪ ERGO result resilient to changing interest rates due to
Slide 27: Financial results Q4 2023
Group finance and risk Financial results Q4 2023 IFRS Net result Reinsurance: €926m ERGO: €78m Property-casualty Elevated CR reflects L&H Germany Net result below €1,004m Combined ratio: 91.6% seasonally high negative change in loss Total technical result: €205m quarterly run rate (€1,141m) Major-lo
Slide 28: Investment result
Group finance and risk Investment result IFRS 2023 % Regular income 3.2 –0.1 0.0 –0.3 Increase driven by higher 0.0 –0.3 interest rates 2.5 Write-downs Benign capital market environment Disposal gains/losses Accepting losses on fixed- income investments (Reinsurance ~€600m, ERGO ~€400m) to accelerat
Slide 29: ERGO – IFRS key financials 2023
Group finance and risk ERGO – IFRS key financials 2023 IFRS ERGO L&H Germany P-C Germany International Insurance revenue €20.1bn €9.9bn (€9.8bn) €4.5bn (€4.2bn) €5.6bn (€4.9bn) (€18.9bn) Continued growth in long- and short-term health (e.g., dental cover) as well as travel Strong business growth in
Slide 30: ERGO Life and Health Germany
Group finance and risk ERGO Life and Health Germany IFRS Contractual service margin (CSM)1, 2 €bn Strategy Long-term financial impact ▪ Life: Run-off of CSM 2023 2033 back-book and Almost stable CSM as new business Contribution to total technical result2 growth of new in long-term health and growth
Slide 31: ERGO Life and Health Germany
Group finance and risk ERGO Life and Health Germany IFRS CSM value drivers1 Impact of Solvency II yield curves Application of relatively low risk-free rates3 for IFRS 17 leads to Due to the choice ▪ Prudent level of CSM and of lower interest lower new business value rates, the new ▪ High over-return
Slide 32: Reinsurance – IFRS key financials 2023
Group finance and risk Reinsurance – IFRS key financials 2023 IFRS Reinsurance P-C reinsurance L&H reinsurance Insurance revenue €37.8bn €27.1bn (€25.3bn) €10.7bn (€11.2bn) (€36.5bn) Significant growth in nat cat and Global Specialty Insurance, Decline driven by currency – organic growth in North Am
Slide 33: Global Specialty Insurance – IFRS key financials 2023
Group finance and risk Global Specialty Insurance – IFRS key financials 2023 IFRS MR Specialty Hartford American Munich Re Insurance Steam Boiler Modern Syndicate Insurance revenue Strong organic growth On track with growth Very profitable growth Substantial Favourable market €bn across all units, t
Slide 34: Overall strengthened reserve prudency protects balance sheet
Group finance and risk Overall strengthened reserve prudency protects balance sheet against unexpected developments IFRS Managing industry Munich Re Ongoing reserve hot spots measures releases1 US liability Reserve position further strengthened as prudent 5.6 reaction to mixed experience regarding e
Slide 35: Solvency II ratio
Group finance and risk Solvency II ratio Economic Development of the Solvency II ratio SII sensitivities % % 270 279 260 267 237 263 263 227 262 255 208 220 235 Optimal range 175 Interest rates Equity markets Spread GOV Spread CORP Atlantic +/-50bps 1 +/-30% +50bps +50bps Hurricane 2 2019 2020 2021
Slide 36: Maintaining an overall well-balanced risk profile
Group finance and risk Maintaining an overall well-balanced risk profile Economic SCR composition of investment and insurance risks % 38 39 48 46 Investment risks 49 Increase driven by lower interest rates and a modest increase in credit risk exposure Diversification benefit between risk categories
Slide 37: Largely stable SCR development
Group finance and risk Largely stable SCR development Economic Total SCR (incl. diversification) €bn Market Credit ▪ Market risk: Minor effects in an 18.0 17.7 overall robust capital market 8.3 8.5 environment Investment 4.3 ▪ Credit risk: Increase driven by 3.2 lower interest rates and a modest ris
Slide 38: German GAAP (HGB) result 2023
Group finance and risk German GAAP (HGB) result 2023 Capital €bn Average 2014–2023 –1.4 –0.8 2.6 4.7 HGB result 2022 €1.1bn Underwriting result –0.1 ▪ Continuously strong 3.9 7.7 underwriting result 6.4 –1.6 -1.6 Investment result +2.9 ▪ Significantly higher investment result due to –1.0 -1.0 Other
Slide 39: Additional information
03 Additional information Source: Munich Re
Slide 40: Segment income statement Q4 2023
Additional information Segment income statement Q4 2023 €m Life and health Property-casualty ERGO ERGO ERGO Total reinsurance reinsurance L&H Germany P-C Germany International Q4 2023 Insurance revenue from insurance contracts issued 2,775 7,024 2,538 1,193 1,447 14,977 Insurance service result 338
Slide 41: Segment income statement 2023
Additional information Segment income statement 2023 €m Life and health Property-casualty ERGO ERGO ERGO Total reinsurance reinsurance L&H Germany P-C Germany International 2023 Insurance revenue from insurance contracts issued 10,725 27,061 9,942 4,539 5,618 57,884 Insurance service result 1,073 3,
Slide 42: Actual vs. analysts' consensus
Additional information Actual vs. analysts’ consensus Operating result – Actual vs. analysts’ consensus1 KPIs – Actual vs. analysts’ consensus1 €m Q4 2023 Consensus Delta €m Q4 2023 Consensus Impact2 Life and health reinsurance 385 446 –61 Total technical result 349 353 –4 Property-casualty reinsura
Slide 43: Capital position
Additional information Capital position Equity Capitalisation €m €bn Equity 31.12.2022 27,245 Change in Q4 10.0% 9.9% 9.2% Net result 4,597 1,004 0.3 Changes 0.3 0.3 4.7 Senior debt 4.7 4.8 Dividend –1,583 0 18.3 19.2 Subordinated debt Share buy-backs –1,041 –87 18.0 Unrealised gains/losses 1,491 1,
Slide 44: Return on equity
Additional information Return on equity Reinsurance ERGO Munich Re Group €m 31.12. 30.9. 31.12. 31.12. 30.9. 31.12. 31.12. 30.9. 31.12. 2023 2023 2022 2023 2023 2022 2023 2023 2022 Adjusted equity 25,231 24,284 22,743 5,138 5,306 5,524 30,369 29,590 28,267 Q4 2023 average adjusted equity 24,758 5,22
Slide 45: Revenue development
Additional information Revenue development 2023 Insurance revenue (gross) Segmental breakdown €m €bn Revenue Share Life and health reinsurance 10.7 19 % 2022 55,385 Property-casualty reinsurance 27.1 47 % Total ERGO Life and Health Germany 9.9 17 % €57.9bn Foreign –1,240 ERGO Property-casualty Germa
Slide 46: Total comprehensive income
Additional information Total comprehensive income Q4 2023 Reinsurance ERGO ERGO ERGO Munich Re €m Total L&H Germany P-C Germany International Q4 2023 Total comprehensive income 1,798 206 –42 388 2,351 Thereof net result 926 18 –7 67 1,004 Thereof change in OCI (after tax) 872 189 –34 320 1,347 There
Slide 47: CSM and risk adjustment by segment
Additional information CSM and risk adjustment by segment 2023 vs. vs. €m CSM 31.12.2022 (%) Risk adjustment 31.12.2022 (%) Life and health reinsurance 12,275 11.8% 3,480 19.7% Property-casualty reinsurance 88 – 398 17.3% ERGO L&H Germany 9,568 –8.4% 539 –7.1% ERGO P-C Germany 385 3.5% 82 23.6%
Slide 48: Loss component by segment
Additional information Loss component by segment 2023 Loss vs. €m component 31.12.2022 (%) Life and health reinsurance 222 17.2% Property-casualty reinsurance 574 5.9% ERGO L&H Germany 19 –25.8% ERGO P-C Germany 192 –35.8% ERGO International 279 –12.9% Total 1,286 –6.6% Net of reinsurance. Analyst
Slide 49: Very strong reserve position
Additional information Very strong reserve position Actual basic losses continue to be consistently below actuarial expectations Reinsurance group – Comparison of incremental expected losses with actual reported losses 1 €m Actuals below expectation for all exposure years – On a line-of-business vie
Slide 50: Another high positive run-off result
Additional information Another high positive run-off result, despite cautious reaction to loss trends like US liability and inflation Ultimate losses1 – Favourable actual vs. expected comparison facilitates ultimate reductions for prior years €m Accident year (AY) ≤2013 2014 2015 2016 2017 2018 2019
Slide 51: Response to benign emergence of basic losses
Additional information Response to benign emergence of basic losses in line with considered judgement Property ▪ Clearly favourable indications across all lines ▪ Short-tail lines develop relatively quickly Favourable loss development leads to releases ▪ Releases spread across various property lines
Slide 52: Non-life reinsurance liability for incurred claims
Additional information Non-life reinsurance liability for incurred claims By line of business % Liability 37 (37) Engineering 5 (5) Total Fire and other property 22 (23) Credit and surety 2 (3) €61.3bn Motor 18 (18) Accident 1 (1) Marine, aviation, space 6 (6) Other classes of business1 8 (8) Net va
Slide 53: Asbestos and environmental survival ratio
Additional information Asbestos and environmental survival ratio Net definitive as at 31 December 20231 €m Asbestos Environmental A&E total Paid 3,580 1,129 4,708 Case reserves 443 173 615 IBNR 520 203 723 Total reserves 962 376 1,338 3-year average annual paid losses 51 33 85 Survival ratio 3-year
Slide 54: Net financial result
Additional information – Investments Net financial result Q4 Q4 ▪ Investment result in Q4 2023 benefited €m 2023 2022 2023 2022 from positive fair value changes in Investment result 2,405 1,717 5,374 2,983 equities and fixed-income investments (the latter mainly at ERGO L&H Currency result –499 –356
Slide 55: Investment result
Additional information – Investments Investment result €m Q4 2023 Return1 2023 Return1 2022 Return1 Regular income 1,788 3.2% 6,950 3.2% 6,358 2.8% Write-ups/write-downs –129 –0.2% –194 –0.1% –2,811 –1.2% Change in expected credit loss (ECL) 49 0.1% –47 0.0% 0 0.0% Disposal gains/losses –163 –0.3% –
Slide 56: Return on investment by asset class and segment
Additional information – Investments Return on investment by asset class and segment 2023 Regular Write-ups/-downs, Disposal Fair value Other ᴓ Market %1 income change in ECL result change inc./exp. RoI value (€m) Fixed income 3.1 0.0 –0.6 0.0 0.0 2.5 174,368 Equities 3.3 0.0 0.0 9.4 0.0 12.7 11,341
Slide 57: Investment portfolio
Additional information – Investments Investment portfolio Investment portfolio1 3-month reinvestment yield % Government/Semi-government bonds2 33 (34) Covered bonds/mortgage loans 15 (15) 4.4% 4.5% 4.5% 4.3% Total Corporate bonds 14 (14) €234bn Emerging-market government bonds 5 (4) ABS/MBS 3 (3) Al
Slide 58: Investment portfolio (economic view) – Government bonds
Additional information – Investments Investment portfolio (economic view) Government/Semi-government bonds Rating structure Regional breakdown % % Policyholder participation Total Without With 31.12.2023 31.12.2022 AAA 31 (56) BB 0 (0) US 22 2 25 25 Total AA 55 (32) NR 1 (0) Germany 3 17 20 21 €77bn
Slide 59: Investment portfolio (economic view) – Covered bonds
Additional information – Investments Investment portfolio (economic view) Covered bonds/Mortgage loans Rating structure covered bonds Regional breakdown % % 31.12.2023 31.12.2022 Germany 48 45 AAA 76 (74) BBB 0 (0) France 14 16 UK 7 8 Total AA 23 (25) NR 1 (1) Netherlands 6 7 €26bn A 1 (1) Norway 3
Slide 60: Investment portfolio (economic view) – Corporate bonds
Additional information – Investments Investment portfolio (economic view) Corporate bonds (including bank bonds) Rating structure Sector breakdown % % 31.12.2023 31.12.2022 Banks 25 23 AAA 4 (4) BB 9 (10) Utilities 12 10 Financial services 9 8 Total AA 8 (7) B and lower 4 (4) Industrial goods & serv
Slide 61: Investment portfolio (economic view) – Emerging markets
Additional information – Investments Investment portfolio (economic view) Emerging markets government bonds Rating structure Regional breakdown % % Policyholder participation Total Without With 31.12.2023 31.12.2022 AA 1 (1) BB 17 (16) Poland 19 9 27 27 Total A 44 (45) B and lower 2 (2) €11bn BBB 36
Slide 62: Investment portfolio (economic view) – ABS/MBS
Additional information – Investments Investment portfolio (economic view) ABS/MBS Rating structure Regional breakdown % % 31.12.2023 31.12.2022 Europe 54 50 AAA 43 (57) BBB 1 (1) Total AA 50 (33) NR 1 (0) US 33 36 €7bn A 5 (9) Rest of world 12 15 Maturity structure Portfolio composition % % 0–1 year
Slide 63: Investment portfolio (economic view) – Alternatives
Additional information – Investments Investment portfolio (economic view) Alternative investments Alternative investments1 % 31.12.2023 31.12.2022 Real estate2 – Regional breakdown (%) Germany 69 70 Real estate 42 (49) US 11 12 Total Netherlands 5 3 Illiquid equity 36 (31) France 3 3 €37bn UK 2 2 Il
Slide 64: Investment portfolio (economic view) – Equities
Additional information – Investments Investment portfolio (economic view) Equities Total equities €11bn 31.12.2023 31.12.2022 Regional breakdown (%) Germany 23 24 US 15 14 UK 14 15 Switzerland 11 11 4.6 France 7 8 4.5 4.4 Other 30 28 Sector breakdown (%) Industrial goods & services 13 11 3.4 3.7 3.2
Slide 65: Breakdown of SCR
Additional information: Group finance and risk – Risk management Breakdown of SCR Increase driven by business growth and lower interest rates SCR by risk category €bn Group RI ERGO Div. 2022 2023 Delta 2023 2023 2023 Slight decrease in risk due to extended retrocession instruments Property-casualty
Slide 66: Property-casualty risk
Additional information: Group finance and risk – Risk management Property-casualty risk Very well-diversified portfolio maintains excellent risk-bearing capacity Top scenario exposures of the Group (net of retrocession) – AggVaR1 €bn €bn 2023 2022 11 Top exposures Basic losses 5.9 5.0 10 1 Atlantic
Slide 67: Life and health risk
Additional information: Group finance and risk – Risk management Life and health risk Life and health – VaR1 €bn ▪ Significant increase in SCR due to strong business 1.6 Longevity growth in reinsurance 1.3 ▪ Capital market effects, 5.2 i.e., lower interest rates and Mortality 4.5 FX changes, almost
Slide 68: Market risk
Additional information: Group finance and risk – Risk management Market risk SCR by risk category €bn Group RI ERGO Div. 2022 2023 2023 2023 2023 Increase driven by slightly higher exposures due to rising equity prices Equity 4.5 4.6 3.4 1.3 –0.1 and active portfolio changes Increasing effect from l
Slide 69: Market risk – asset-liability mismatch
Additional information: Group finance and risk – Risk management Market risk Asset-liability mismatch DV011 Portfolio duration €m Net DV01 Assets Liabilities Assets Liabilities Munich Re2 12 (12) 120 (114) 108 (102) 6.5 (6.5) 6.2 (6.3) Reinsurance 9 (7) 35 (34) 26 (27) 4.7 (4.8) 4.5 (5.0) ERGO3 2 (6
Slide 70: Sensitivities of Solvency II ratio
Additional information: Group finance and risk – Risk management Sensitivities of Solvency II ratio Ratio as at 31.12.2023 267 Interest rate +50bps1 270 Interest rate –50bps1 263 Spread +50bps GOV 262 Spread +50bps CORP 263 Equity markets +30% 279 Equity markets –30% 255 FX –20% 264 Inflation +100bp
Slide 71: Preliminary Solvency II ratios
Additional information: Group finance and risk – Risk management Preliminary Solvency II ratios Munich Re and solo entities1 Internal model EOF SCR S-II Ratio S-II Ratio €bn (without TM3) (without TM3) (without TM3) (incl. TM3) Munich Re 48.0 18.0 267% 292% Munich Reinsurance Company 49.3 18.0 274%
Slide 72: ERGO Life and Health Germany
Additional information: ERGO ERGO Life and Health Germany Insurance revenue Total technical result Contractual service margin2 €m €m 2022 9,802 1,024 1,059 9,568 9,978 10,448 Foreign exchange 0 Divestments/investments –16 321 205 Organic change 156 Q4 Q4 2023 2022 31.12. 30.09. 31.12. 2023 9,942 202
Slide 73: ERGO Life and Health Germany
Additional information: ERGO ERGO Life and Health Germany Total technical result Q4 €m 2023 2023 ▪ Lower CSM and CSM release due to lower interest rate level in Q4 Release of CSM 144 819 applied for the full year ▪ Q4 release equals difference Release of risk adjustment (non-PAA) 9 35 between FY and
Slide 74: ERGO Life and Health Germany – CSM/RA
Additional information: ERGO ERGO Life and Health Germany – CSM/RA €m CSM1 RA1 CSM CSM/RA ▪ Relatively low amount of new 31.12.2022 10,448 580 contracts added due to strategic shift in health to short-term business and New contracts lower single-premium business in life added 154 8 new book Accretio
Slide 75: ERGO Property-casualty Germany
Additional information: ERGO ERGO Property-casualty Germany Insurance revenue Total technical result Combined ratio €m €m % 2022 4,227 495 97.5 98.5 88.9 90.3 Foreign exchange –9 400 Divestments/investments 0 Organic change 321 29 16 Q4 Q4 2023 2022 Q4 Q4 2023 2022 2023 4,539 2023 2022 2023 2022 Inv
Slide 76: ERGO Property-casualty Germany
Additional information: ERGO ERGO Property-casualty Germany Insurance revenue (gross) in 2023 (2022) Combined ratio €m % 2022 90.3 61.2 29.1 Total 2023 88.9 59.1 29.9 € 4,539 m (€4,227m) Q4 2023 97.5 55.0 42.5 Loss ratio Expense ratio Fire/property 1,101 Legal protection 453 106.3 Liability 925 Mari
Slide 77: ERGO International
Additional information: ERGO ERGO International Insurance revenue Total technical result Contractual service margin2 €m €m €m 2022 4,867 625 3,174 3,224 Foreign exchange 57 2,831 347 Divestments/investments 157 154 87 Organic change 536 Q4 Q4 2023 2022 30.12. 30.09. 31.12. 2023 5,618 2023 2022 2023
Slide 78: ERGO International
Additional information: ERGO ERGO International Property- Combined ratio % 121.9 casualty1 114.8 90.1 87.7 93.0 81.5 89.2 90.5 90.3 93.3 95.4 88.7 90.4 88.1 87.9 89.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 Poland Legal Greece Baltics Austria Thailand Spain 2022 2022 2022 2022 2023 2023 2023 2023 protection Li
Slide 79: ERGO International – Insurance revenue (gross)
Additional information: ERGO ERGO International – Insurance revenue (gross) 2023 Property-casualty Life and health 2023 Life 2023 Poland 1,892 Austria 146 Legal protection 627 Belgium 126 Greece 261 Poland 100 Total Total Baltic states 258 Baltic states 72 €3,487m €2,131m Austria 234 (€2,934m) (€1,9
Slide 80: Strong position in biometric risk solutions
Additional information: Life and health reinsurance Strong position in biometric risk solutions supplemented by financially-motivated reinsurance and data-driven services Insurance 37% USA 21% UK/Ireland revenue ▪ Expand biometric risk business ▪ Established FinMoRe proposition ▪ Grow FinMoRe busine
Slide 81: Overweight in North America and traditional mortality risk
Additional information: Life and health reinsurance Overweight in North America and traditional mortality risk Present value of USA 80 20 30% future claims Continental Europe 40 60 20% Asia/MENA 40 60 15% UK/Ireland 10 10 80 15% Canada 70 30 15% Mortality ~60% Australia 20 80 <5% Morbidity ~30% Long
Slide 82: Life and health reinsurance
Additional information: Life and health reinsurance Life and health reinsurance Insurance revenue Total technical result Contractual service margin2 €m €m €m 2022 11,164 1,433 12,275 1,041 10,707 10,980 Foreign exchange –413 Divestments/investments 0 349 Organic change –26 108 Q4 Q4 2023 2022 30.12.
Slide 83: Life and health reinsurance
Additional information: Life and health reinsurance Life and health reinsurance Total technical result Q4 €m ▪ Release of CSM and RA in line 2023 2023 with expectation Release of CSM 260 898 ▪ Insurance service result supported by strong new business and in-force management Release of risk adjustmen
Slide 84: Life and health reinsurance – CSM/RA
Additional information: Life and health reinsurance Life and health reinsurance – CSM/RA €m CSM1 RA1 CSM ▪ Very pleasing new business contribution, CSM/RA 31.12.2022 10,980 2,907 considerably exceeding release through P&L – especially in North America, New contracts including large transactions 2,10
Slide 85: Biometric risk solutions
Additional information: Life and health reinsurance Biometric risk solutions Strong foundation supplemented by promising business opportunities Insurance revenue €m –0.6% 10,468 10,528 Portfolio Outlook ▪ Leading footprint in all major markets ▪ Maintain our underwriting and pricing discipline ▪ Str
Slide 86: Biometric risk solutions
Additional information: Life and health reinsurance Biometric risk solutions Selective growth in longevity business – new products in financial markets Longevity Financial markets Successful growth path – Comprehensive market risk solutions maintaining prudent underwriting approach for the financial
Slide 87: Financially motivated reinsurance
Additional information: Life and health reinsurance Financially motivated reinsurance Strong demand prevails Insurance revenue €m –59.6% 636 Portfolio Outlook ▪ Portfolio comprises ~290 ▪ Demand expected to remain high 257 transactions worldwide ▪ Success depends on ability to structure ▪ 41 treatie
Slide 88: Property-casualty reinsurance
Additional information: Property-casualty reinsurance Property-casualty reinsurance Insurance revenue Total technical result Combined ratio €m €m % 2022 25,325 3,968 4,224 91.6 93.8 85.2 83.2 Foreign exchange –876 Divestments/investments 0 619 371 Organic change 2,612 Q4 Q4 2023 2022 Q4 Q4 2023 2022
Slide 89: Property-casualty reinsurance
Additional information: Property-casualty reinsurance Property-casualty reinsurance Combined ratio Q4 Ø Annual % 2023 2023 expectation Change in 2022 52.5 15.4 15.3 83.2 loss component 3.7 0.2 ~0.0 2023 57.3 12.6 15.4 85.2 Major losses1 13.0 12.6 ~14.0 Q4 2023 61.1 13.0 17.6 91.6 Nat cat1 7.2 9.0 ~1
Slide 90: January renewals
Additional information: Property-casualty reinsurance January renewals Total property-casualty book1 Regional allocation of January renewals % % Europe 32 Latin America 5 Total Total Worldwide 23 North America 25 €34bn €15.2bn Asia/Pacific/Africa 15 Nat cat shares of renewable portfolio2 % January r
Slide 91: January renewals
Additional information: Property-casualty reinsurance January renewals Selective growth and portfolio optimisation % 100.0 –8.9 91.1 +7.6 +4.7 103.5 €m 15,159 –1,346 13,812 +1,156 +713 15,682 Change in premium +3.5% Thereof price movement1 ~0.0% Thereof change in exposure for our share +3.5% Total r
Slide 92: January renewals
Additional information: Property-casualty reinsurance January renewals Price and volume change in major lines of business Total Property Casualty Specialty lines Line of business Prop. XL Prop. XL Marine Credit Aviation Premium split1 €15.2bn 29% 12% 48% 3% 3% 5% 1% Price 2.9% change2 0.3% 1.0% 0.0%
Slide 93: January renewals
Additional information: Property-casualty reinsurance January renewals Split by line of business and region Split by line Casualty Property Marine Credit Aviation of business % 2024 51 41 3 41 2023 51 41 3 5 1 Split by Europe Worldwide Asia/Pacific/Africa North America Latin America region % 2024 35
Slide 94: Positive outlook for upcoming renewals
Additional information: Property-casualty reinsurance Positive outlook for upcoming renewals Total P-C book1 Treaty business % January April July Total Total Total Total €34bn €15.7bn €2.9bn €3.6bn Rest of Asia/ Rest of Asia/ Australia/ January 45 Asia/Pacific/Africa North America Pacific/Africa Nor
Slide 95: P-C reinsurance portfolio
Additional information: Property-casualty reinsurance P-C reinsurance portfolio Total P-C book2 Core P-C reinsurance2 Global Specialty Insurance % % % Total1 Total Total €34bn €26bn €8bn Core P-C reinsurance 76 Casualty 41 American Modern 21 Global Specialty Ins. 24 Specialty3 9 Hartford Steam Boile
Slide 96: Core P-C reinsurance portfolio
Additional information: Property-casualty reinsurance Core P-C reinsurance portfolio % % Casualty Casualty motor 22 Casualty ex motor 19 Facultative 15 Total Total Property XL 19 €26bn €26bn Nat cat XL 12 Proportional 66 Property ex nat cat XL 31 Specialty Agro 7 Credit 5 Marine 3 Aviation 1 1 Ultim
Slide 97: Retrocession
Additional information: Property-casualty reinsurance Retrocession Successful placements in a challenging, but orderly market Retrocession – Maximum in-force protection per nat cat scenario1 €m Munich Re key channels 1,500 Traditional retrocession 1,000 ▪ Munich Re placement benefited from a more fa
Slide 98: Retrocession
Additional information: Property-casualty reinsurance Retrocession Nat cat protection before reinstatement premiums €m 1,500 1,000 500 US Windstorm US Windstorm US EU Japan EQ Australia Northeast Southeast Earthquake Windstorm Earthquake Index-based products Sidecars Indemnity retro As at January 20
Slide 99: Cyber business: Focus on further improving portfolio quality
Additional information: Property-casualty reinsurance Cyber business: Focus on further improving portfolio quality Actively addressing challenges of accumulation exposure to drive sustainability Gross premiums written US$ bn ▪ Reliable offering of sustainable capacity, demonstrating Munich Re’s lead
Slide 100: US casualty shows first signs of rate deceleration
Additional information: Property-casualty reinsurance US casualty shows first signs of rate deceleration Past years with significantly reduced exposure and broadly increased rate levels Global traditional US traditional casualty book – share reduced from ~36% to ~30% casualty book % % Split by line
Slide 101: Disclosure of taxonomy eligibility and alignment
Additional information: Taxonomy disclosure Disclosure of taxonomy eligibility and alignment Non-life insurance revenues1 100% 100% Assets within the scope of €37.0bn €156.1bn application of the taxonomy KPI3 ~61% Assets not used to assess taxonomy eligibility Non-EU and SME exposures and derivative
Slide 102: Changes to shares in circulation
Additional information: Shareholder information Changes to shares in circulation Acquisition of Retirement of Weighted average number of shares in circulation Shares 31.12. own shares in own shares in 31.12. (millions) (millions) 2022 2023 2023 2023 140.1 139.4 136.0 134.7 Shares in 137.6 –3.0 – 134
Slide 103: 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 Analysts’ and Investors’ Cal
Slide 104: 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 105: 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