17 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Nov 9, 2017
Slide 1: Quarterly statement as at 30 September 2017
Image: Getty Images/fStop Quarterly statement as at 30 September 2017 9 November 2017
Slide 2: Agenda
Agenda 2 11 1 Munich Re (Group) 3 Reinsurance 7 15 2 ERGO 4 Outlook Quarterly statement as at 30 September 2017 2
Slide 3: Munich Re (Group) – Financial highlights
Munich Re (Group) – Financial highlights Nat cats dominate Q3 – Capitalisation remains strong Munich Re (Group) Q3 2017 (9M 2017) Net result Technical result €m Investment result €m Net result €m –€1,436m (9M: –€146m) 2,290 5,942 5,629 2,095 Q3 loss driven by heavy nat cat 816 684 claims, recapture
Slide 4: Munich Re (Group) – Capitalisation
Munich Re (Group) – Capitalisation IFRS capital position Equity €m Capitalisation €bn Equity 31.12.2016 31,785 Change Q3 0.4 0.4 0.4 Consolidated result –146 –1,436 4.2 0.4 4.4 4.2 0.3 Changes 2.8 2.8 Dividend –1,333 0 Unrealised gains/losses –92 –94 Exchange rates –1,570 –501 Share buy-backs –743 –
Slide 5: Munich Re (Group) – Investment portfolio
Munich Re (Group) – Investment portfolio Investment portfolio Investment portfolio1 % Portfolio management in Q3 Land and buildings Fixed-interest securities Ongoing geographic diversification 3.3 (2.9) 55.3 (56.3) Increase in corporate bond exposure Slight decrease in structured products, Mis
Slide 6: Munich Re (Group) – Investment result
Munich Re (Group) – Investment result Investment result Investment result (€m) Q2 2017 Return1 Q3 2017 Return1 9M 2017 Return1 9M 2016 Return1 Regular income 1,720 3.0% 1,527 2.7% 4,881 2.8% 5,001 2.8% Write-ups/write-downs –49 –0.1% –84 –0.1% –160 –0.1% –284 –0.2% Disposal gains/losses 432 0.7% 259
Slide 7: ERGO
ERGO Quarterly statement as at 30 September 2017 7
Slide 8: ERGO
ERGO ERGO Gross premiums written €m Major result drivers €m 9M 9M Technical result 9M 2016 13,157 2017 2016 9M: Improvements on group level, driven by Foreign exchange –19 Technical result 559 345 214 L&H Germany: One-off effects in Life did Divestments/investments –84 not reoccur, higher profit
Slide 9: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio % Gross premiums written €m Loss ratio Expense ratio Other Motor 2015 97.9 64.7 33.2 304 586 2016 97.0 61.9 35.1 9M 2017 96.6 63.3 33.2 Q3 2017 98.1 66.5 31.6 Legal protection TOTAL Personal accident 313 €2,619m 473 103.9 100.0 99.1 98.6 98.1 96
Slide 10: ERGO International – Property-casualty, including Health
ERGO ERGO International – Property-casualty, including Health Combined ratio1 % Gross premiums written €m Loss ratio Expense ratio Other Poland 788 920 2015 104.7 65.3 39.4 Turkey TOTAL Spain 2016 98.0 64.9 33.1 141 €3,123m 585 9M 2017 95.5 64.5 31.0 Greece Legal protection 185 504 Q3 2017 91.5
Slide 11: Reinsurance
Reinsurance Quarterly statement as at 30 September 2017 11
Slide 12: Reinsurance Life and Health
Reinsurance Reinsurance Life and Health Gross premiums written €m Major result drivers €m 9M 9M Technical result, incl. fee income of €271m 9M 2016 9,892 2017 2016 9M: Good underlying business Foreign exchange 7 Technical result 232 304 –72 development Divestments/investments 0 9M: Technical r
Slide 13: Reinsurance Property-casualty
Reinsurance Reinsurance Property-casualty Gross premiums written €m Major result drivers €m 9M 9M Technical result 9M 2016 13,733 2017 2016 Q3: High nat cat loss ratio of 70.3%, Foreign exchange 27 Technical result –1,381 1,642 –3,022 thereof impact from hurricanes Harvey, Irma and Maria, of €2.
Slide 14: Reinsurance Combined ratio
Reinsurance Combined ratio Combined ratio % Basic losses Major losses Expense ratio 160.9 2015 89.7 50.8 6.2 32.6 2016 95.7 54.2 9.1 32.4 9M 2017 117.3 54.5 30.3 32.6 Q3 2017 160.9 54.1 75.0 31.8 101.9 Major Reserve Normalised 99.8 97.1 losses Nat cat Man-made releases1 combined ratio2 9M 2017
Slide 15: Outlook
Outlook Quarterly statement as at 30 September 2017 15
Slide 16: Outlook 2017
Outlook 2017 GROUP REINSURANCE ERGO Gross premiums written Gross premiums written Gross premiums written €48–50bn €31–33bn €17–17.5bn Net result L&H: Technical result Net result incl. fee income Small profit €200–250m (prev. €2.0–2.4bn) ~€400m Return on investment P-C combined ratio1 P-C combined ra
Slide 17: Disclaimer
Disclaimer This presentation 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 lead to material differences between the forward-looking statements given here and the a