Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Q1 2019 Earnings Presentation
37 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 8, 2019
Slide 1: Quarterly statement as at 31 March 2019
Quarterly statement as at 31 March 2019 8 May 2019 Christoph Jurecka Image: AdobeStock/LuckyStep
Slide 2: Agenda
Agenda Munich Re (Group) 2 1 ERGO 7 2 3 Reinsurance 13 4 Outlook 20 5 Backup 22 Quarterly statement as at 31 March 2019 2
Slide 3: Financial highlights Q1 2019: Good start to the year
Munich Re (Group) – Financial highlights Q1 2019 Good start to the year MUNICH RE (GROUP) Q1 2019 (Q1 2018) Net result Technical result Investment result Net result €633m (€827m) €m €m €m Solid underlying performance, 1,796 1,741 positive currency effects and 1,020 low tax expenses 827 642 633 Retur
Slide 4: IFRS capital position
Munich Re (Group) – Capitalisation IFRS capital position Equity €m Capitalisation €bn 0.4 0.4 Equity 31.12.2018 26,500 0.3 Consolidated result 633 4.4 4.2 0.3 0.3 3.9 Changes 2.8 3.7 Dividend 0 Unrealised gains/losses 2,066 Exchange rates 326 Share buy-backs –280 Other –254 13.4 12.6 13.2 12.6 Equit
Slide 5: Investment portfolio
Munich Re (Group) – Investments Investment portfolio Investment portfolio1 % Portfolio management in Q1 Land and buildings Fixed-interest securities Increased market values after decline of 4.4 (4.6) 53.8 (53.8) interest rates and strong equity markets Equity quota net of hedges up to 6.0% – Mis
Slide 6: Investment result
Munich Re (Group) – Investments Investment result €m Q1 2019 Return1 Q1 2018 Return1 Regular income 1,611 2.7% 1,493 2.6% Write-ups/write-downs –83 –0.1% –115 –0.2% Disposal gains/losses 602 1.0% 584 1.0% Derivatives2 –231 –0.4% –17 0.0% Other income/expenses –157 –0.3% –149 –0.3% Investment result
Slide 7: ERGO
ERGO Quarterly statement as at 31 March 2019 7
Slide 8: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Gross premiums written €m Major result drivers €m Q1 2018 2,321 Q1 2019 Q1 2018 Technical result 110 91 20 Foreign exchange 0 Non-technical result 52 60 –8 Divestments/investments –1 thereof investment result 992 1,049 –57 Organic change 26 Other –99 –115 16 Q1 20
Slide 9: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Gross premiums written €m Major result drivers €m Q1 2018 1,266 Q1 2019 Q1 2018 Technical result 23 –6 29 Foreign exchange 0 Non-technical result 26 20 6 Divestments/investments 0 thereof investment result 45 37 8 Organic change 83 Other –35 –14 –21 Q1 2019 1,34
Slide 10: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio % Gross premiums written €m Loss ratio Expense ratio Other Motor 2017 97.5 64.1 33.5 155 (124) 353 (358) 2018 96.0 62.5 33.4 Q1 2019 98.1 64.7 33.4 Legal protection TOTAL Liability 123 (122) €1,349m 277 (260) 101.7 98.1 98.1 94.7 100.3 97.9 92.7
Slide 11: ERGO International
ERGO ERGO International Gross premiums written €m Major result drivers €m Q1 2018 1,356 Q1 2019 Q1 2018 Technical result 44 47 –3 Foreign exchange –22 Non-technical result –14 12 –26 Divestments/investments –27 thereof investment result 79 98 –19 Organic change –7 Other –22 –19 –4 Q1 2019 1,300 Ne
Slide 12: ERGO International
ERGO ERGO International Combined ratio % Gross premiums written €m Property-casualty Life 98.7 94.7 95.6 94.5 95.4 730 (756) 170 (213) TOTAL 95.3 91.5 93.3 €1,300m Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Health 2017 2017 2017 2018 2018 2018 2018 2019 400 (387) Q1 2019 P-C Q1 Q1 Life Q1 Q1 116.0 98.5 102.7 98.9 ther
Slide 13: Reinsurance
Reinsurance Quarterly statement as at 31 March 2019 13
Slide 14: Reinsurance Life and Health
Reinsurance Reinsurance Life and Health Gross premiums written €m Major result drivers €m Q1 2018 2,865 Q1 2019 Q1 2018 Technical result 78 140 –62 Foreign exchange 101 Non-technical result 48 82 –34 Divestments/investments 0 thereof investment result 177 207 –31 Organic change –71 Other 2 –62 64
Slide 15: Reinsurance Property-casualty
Reinsurance Reinsurance Property-casualty Gross premiums written €m Major result drivers €m Q1 2018 5,317 Q1 2019 Q1 2018 Technical result 387 749 –362 Foreign exchange 214 Non-technical result 121 89 32 Divestments/investments –41 thereof investment result 449 404 44 Organic change –6 Other –88 –
Slide 16: Reinsurance Property-casualty – Combined ratio
Reinsurance Reinsurance Property-casualty – Combined ratio % Basic losses Major losses Expense ratio 160.9 2017 114.1 54.8 25.8 33.5 2018 99.4 53.6 11.6 34.2 Q1 2019 97.9 54.8 9.7 33.4 102.0 105.1 103.9 Major Reserve Normalised 100.7 losses Nat cat Man-made releases1 combined ratio2 93.9 97.9
Slide 17: April renewals – Main renewal for Japan, high nat cat share
Reinsurance – April renewals 2019 April renewals – Main renewal for Japan, high nat cat share Total property-casualty book1 % Regional allocation of April renewals % Remaining business Business up for January renewal Rest Europe 30 46 4 34 Worldwide TOTAL Japan and India 18 €1.7bn 25 Latin America N
Slide 18: Overall portfolio profitability further improved – April renewals 2019
Reinsurance – April renewals 2019 Overall portfolio profitability further improved – Rate increases in loss-affected business April renewals 2019 % 100 –10.1 89.9 –5.2 25.5 110.3 Price increase of 1.4% – improvement compared €m 1,658 –167 1,491 –86 423 1,828 with January 2019 Change in premium +10
Slide 19: Regional allocation of July renewals
Reinsurance – July renewals Regional allocation of July renewals Regional focus on North North America Worldwide and Latin America, main 29% 22% renewal date in Australia TOTAL Asia, Pacific Latin America 11% €3.2bn and Africa 9% Relatively high Australia Europe nat cat share of ~17% 24% 6% Quarterl
Slide 20: Outlook
Outlook Quarterly statement as at 31 March 2019 20
Slide 21: Outlook 2019
Outlook 2019 GROUP Gross premiums written Net result1 Return on investment ~€49bn ~€2.5bn ~ 3% ERGO Combined ratio Gross premiums written Net result P-C Germany International ~€17.5bn ~€0.4bn ~93% ~95% REINSURANCE Combined ratio Life and Health Gross premiums written Net result Property-casualty2 Te
Slide 22: Backup
Backup Quarterly statement as at 31 March 2019 22
Slide 23: Premium development
Backup: Munich Re (Group) Premium development Gross premiums written €m Segmental breakdown €m Reinsurance ERGO Q1 2018 13,126 Property-casualty Life and Health Germany 5,484 (41%) ( 3.1%) 2,346 (18%) ( 1.1%) Foreign exchange 293 Divestments/ TOTAL ERGO –69 Property-casualty Germany investments €1
Slide 24: Reconciliation of operating result with net result
Backup: Group Finance Reconciliation of operating result with net result Reconciliation of operating result with net result – Q1 2019 €m Operating result 875 Other non-operating result –122 Currency result 58 Net finance costs –56 Taxes on income –122 Net result 633 Other non-operating result (€m) Q
Slide 25: Actual vs. analysts' consensus
Backup: Munich Re (Group) Actual vs. analysts’ consensus Operating result – Actual vs. analysts’ consensus1 €m Major developments in Q1 2019 Q1 2019 Consensus Delta Reinsurance Property-casualty Combined ratio: 97.9% (consensus: 98.0%) – major-loss ratio: Reinsurance Property-casualty 507 523 –16 9.
Slide 26: Development of combined ratio
Backup: Reinsurance Development of combined ratio Combined ratio vs. basic losses (%) Combined ratio Basic loss ratio 160.9 99.8 92.5 101.9 97.1 93.9 103.9 88.6 102.0 100.7 105.1 97.9 56.2 55.3 51.1 55.1 54.4 54.1 55.6 53.2 55.7 55.3 50.4 54.8 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Slide 27: Return on investment by asset class and segment
Backup: Investments Return on investment by asset class and segment Q1 2019 Regular Write-ups/ Disposal Extraord. Other ᴓ Market %1 income -downs result derivative result inc./exp. RoI value (€m) Afs fixed-income 2.3 0.0 0.9 0.0 0.0 3.2 126.205 Afs non-fixed-income 2.9 –1.7 4.6 0.0 0.0 5.8 16.426 De
Slide 28: Investment result Reinsurance
Backup: Investments Investment result Reinsurance Reinsurance Life and Health (€m) Q1 2019 Return1 Q1 2018 Return1 Regular income 188 2.7% 173 2.7% Write-ups/write-downs –10 –0.1% –10 –0.2% Disposal gains/losses 22 0.3% 69 1.1% Derivatives2 –6 –0.1% –8 –0.1% Other income/expenses –17 –0.3% –15 –0.2%
Slide 29: Investment result ERGO
Backup: Investments Investment result ERGO Life and Health Germany (€m) Q1 2019 Return1 Q1 2018 Return1 Regular income 855 2.8% 819 2.7% Write-ups/write-downs –41 –0.1% –43 –0.1% Disposal gains/losses 409 1.3% 322 1.1% Derivatives2 –165 –0.5% 18 0.1% Other income/expenses –66 –0.2% –67 –0.2% Investm
Slide 30: Investment result ERGO International
Backup: Investments Investment result ERGO International (€m) Q1 2019 Return1 Q1 2018 Return1 Regular income 91 2.1% 101 2.3% Write-ups/write-downs 22 0.5% –15 –0.4% Disposal gains/losses 0 0.0% 11 0.3% Derivatives2 –27 –0.6% 8 0.2% Other income/expenses –7 –0.1% –7 –0.2% Investment result 79 1.8% 9
Slide 31: Sensitivities to interest rates, spreads and equity markets
Backup: Investments Sensitivities to interest rates, spreads and equity markets Sensitivity to risk-free interest rates – Basis points –50 –25 +50 +100 Change in gross market value (€bn) +8.1 +4.0 –7.5 –14.3 Change in on-balance-sheet reserves, net (€bn)1 +2.1 +1.0 –1.9 –3.7 Change in off-balance-sh
Slide 32: On- and off-balance-sheet reserves
Backup: Investments On- and off-balance-sheet reserves €m 31.12.2016 31.12.2017 31.12.2018 31.3.2019 in Q1 Market value of investments 238,490 231,885 231,876 240,484 8,608 Total reserves 28,496 25,395 22,002 27,612 5,610 On-balance-sheet reserves Fixed-interest securities 8,649 7,622 4,953 7,856
Slide 33: On- and off-balance-sheet reserves
Backup: Investments On- and off-balance-sheet reserves €m On-balance-sheet reserves Off-balance-sheet reserves1 Total reserves (gross) 11,055 16,556 Provision for deferred premium refunds –4,781 –10,041 Deferred tax –1,269 –2,032 Minority interests –4 0 Consolidation and currency effects –206 0 Shar
Slide 34: Changes to shares in circulation
Backup: 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 31.3. (millions) 2018 Q1 2019 Q1 2019 2019 (millions) Shares in 160.0 145.8 –1.4 – 144.4 154.1 circulation 148.7 14
Slide 35: Financial calendar
Backup: Shareholder information Financial calendar 2019 7 AUGUST Half-year financial report as at 30 June 2019 7 NOVEMBER Quarterly statement as at 30 September 2019 2020 6 FEBRUARY Preliminary key figures 2019 and renewals Balance sheet press conference for 2019 financial statements 18 MARCH Analys
Slide 36: For information, please contact
Shareholder information For 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 E-mail: tdzuba@munichre.com E-mail: cfranz
Slide 37: 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