Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2

Munchener Ruckversicherungs-gesellschaft — Munich Re — Investor Day (March 2017)

162 slides from Munchener Ruckversicherungs-gesellschaft's investor day presentation, Mar 15, 2017

1. Slide 1: Shaping change in insurance

   Image: Getty Images/fStop Shaping change in insurance Analysts' conference 2017 Munich, 15 March 2017

2. Slide 2: Agenda

   Agenda 1 Shaping change in insurance Nikolaus von Bomhard 2 4 ERGO Markus Rieß 29 2 Group Finance Jörg Schneider 13 5 Reinsurance Torsten Jeworrek Property-casualty 43 3 Risk management Bernhard Kaufmann 22 6 Reinsurance Life Joachim Wenning 55 7 Additional information 61 Analysts' conference 2017 2

3. Slide 3: Munich Re delivers financial stability

   Shaping change in insurance Munich Re delivers financial stability IFRS net income HGB distributable earnings Dividend per share1 €2.6bn €4.2bn €8.60 Meeting guidance Safeguards  +4.2% capital repatriation Solvency II ratio Debt leverage Goodwill 267% 12.6% 8.9% Well above One of the lowest in the

4. Slide 4: Shaping change in insurance – Seizing long-term opportunities while managing short-term pressure

   Shaping change in insurance Shaping change in insurance – Seizing long-term opportunities while managing short-term pressure Changing competitive landscape Digitalisation Macroeconomic/political risks  Emergence of new players and  New technologies and partnerships  Persistently low interest rate

5. Slide 5: Was 2016 the turning point for interest rates and inflation?

   Shaping change in insurance Was 2016 the turning point for interest rates and inflation? – Uncertainty remains, while Munich Re is well positioned for all scenarios Political uncertainty … recent pick-up in … which have pushed up a major driver of … inflation expectations1 … government bond yields2

6. Slide 6: Predictable results despite underlying earnings pressure

   Shaping change in insurance Predictable results despite underlying earnings pressure Predictability Low interest rates Actual net result vs. guidance €bn Attrition of running yield – Munich Re (Group) Guidance Actual Disposal 3.6% 3.3 Result gains 3.2 3.2 without 3.1 impact1 2.6 2.8% approx. aggress

7. Slide 7: Strong balance sheet supports sound profitability

   Shaping change in insurance Strong balance sheet supports sound profitability, … Medium Strong capitalisation RoE exceeds cost of capital % Low High according to all metrics 16 Value creation 12 8  Average cost of capital Rock-solid reserving position 4 0 2005 2016 €28bn ~10.7% > ~8% unrealised inv

8. Slide 8: Facilitating attractive shareholder returns

   Shaping change in insurance … facilitating attractive shareholder returns Further dividend increase, continuation of €1bn buy-back until AGM 2018 Continuous growth of dividend per share Outperforming major peers and insurance index2 % CAGR: 9.7% €8.60 Total shareholder return (p.a.) 18 Peer 3 3.10 1

9. Slide 9: Reinsurance – Well positioned to manage the current market environment

   Shaping change in insurance Reinsurance – Well positioned to manage the current market environment and drive innovative solutions ILLUSTRATIVE New Traditional reinsurance TOTAL1,2 Solutions Successfully managing Emerging for emerging risks the soft cycle €23bn markets New products/ risk-related Risk

10. Slide 10: ERGO – Turnaround initiated, well on track

    Shaping change in insurance ERGO – Turnaround initiated, well on track to become a significant earnings contributor ERGO Strategy Programme/International Strategy Increasing IFRS net profit1 €m ~600+ Fit Digital Successful! 530 Leaner and Transforming Convincing solutions, 150–200 more efficient the

11. Slide 11: Munich Health – Reallocation of health primary insurance and reinsurance business

    Shaping change in insurance Munich Health – Reallocation of health primary insurance and reinsurance business Munich Re – Group structure until 2016 Health insurance business will retain its strategic importance Life and Health Reinsurance Reinsurance Anticipating changing market conditions and clie

12. Slide 12: Innovation – Munich Re establishing a strong position to tap opportunities

    Shaping change in insurance Innovation – Munich Re establishing a strong position to tap opportunities – Focus on tangible business impact Munich Re has successfully laid the groundwork … Innovation strategy Group-wide approach Leveraging core competencies Defined innovation areas Intensive know-how

13. Slide 13: Group Finance

    Group Finance Analysts' conference 2017 13

14. Slide 14: Munich Re continues to deliver reliable earnings

    Group Finance Munich Re continues to deliver reliable earnings IFRS net income HGB result Economic earnings €2.6bn €3.4bn €2.3bn Sound underlying result without Substantial increase – Positive operating performance in dilution of strong balance sheet Safeguards capital repatriation reinsurance compe

15. Slide 15: Prudent approach allows for reserve releases

    Group Finance Prudent approach allows for reserve releases without weakening resilience against future volatility Run-off change of ultimate basic and major losses1 €1.4bn  Prudent reserving approach Reserve release  Cautious initial loss picks for new P-C reinsurance2 underwriting year  Positive

16. Slide 16: Holistic approach mitigates the risk of an unexpected increase in claims inflation

    Group Finance Holistic approach mitigates the risk of an unexpected increase in claims inflation Uncertainty … … well controlled by Munich Re Claims inflation Underwriting Reserving Investments  Increase of insurers’ claims  Risk selection: Limit  Prudent assessment of  Identify hedgeable severi

17. Slide 17: Rising interest rates benefit reinsurance investments

    Group Finance Rising interest rates benefit reinsurance investments – Attrition of running yield in 2016: 30bps – Expectation for 2017: ~20bps ERGO Reinsurance 3.0 –30bps 2.7 95% +20bps 2.7 46% Euro 2.5 US$ 1.5 1% 2.2 2.2 23% 1.3 US$ Euro Q1 2016 Q4 Q1 2016 Q4 Running yield 9.3 years Running yield R

18. Slide 18: Interest-rate sensitivity – Impact from rising interest rates

    Group Finance Interest-rate sensitivity – Impact from rising interest rates positive overall , manageable short-term effects –50bps Current1 +50bps 248% 267% 284%  Reduction of capital requirements S2 ratio €33.8bn €31.8bn €29.9bn  Decline of unrealised gains Shareholders’ equity  Short-term: Sli

19. Slide 19: SII capital generation reflecting capital-market-driven change in capital requirements

    Group Finance SII capital generation reflecting largely capital-market-driven change in capital requirements normalised 2.5 – 2.5 0.2 Pleasing economic earnings (EE) –2.3  Strong operating EE in reinsurance €2.3bn –1.8 0.5 –€1.8bn compensate for negative ERGO contribution  High economic effects –

20. Slide 20: Significant increase in local result of parent company

    Group Finance Significant increase in local result of parent company safeguards financing of capital repatriation 3.4 –0.3 €4.2bn 1.6 –0.5 3.3 –2.3 €3.4bn 2.6 –0.3 Distributable earnings Dividend/ HGB result Other1 Distributable earnings HGB result Underwriting Investment Other HGB result 31.12.2015

21. Slide 21: Outlook 2017

    Group Finance Outlook 2017 Group Reinsurance ERGO Gross premiums written Gross premiums written Gross premiums written €48–50bn €31–33bn €17–17.5bn Net result Net result Net result €2.0–2.4bn €1.8–2.2bn €150–200m Return on investment Combined ratio1 Combined ratio ~3% ~97% ~99% ~98% Germany Internat

22. Slide 22: Risk management

    Risk management Analysts' conference 2017 22

23. Slide 23: Current global risk landscape leads to perception of great uncertainty

    Risk management Current global risk landscape leads to perception of great uncertainty Preparedness and resilience Business-enabling with attractive risk-return profile  Risk assessment based on forward-looking scenarios  Increasing risk appetite for complex and large risks  Active exposure manag

24. Slide 24: Given high levels of uncertainty, risk profile remains relatively stable

    Risk management Given high levels of uncertainty, risk profile remains relatively stable Breakdown of solvency capital requirement (SCR) Munich Re’s SII ratio1 €6.8bn Property-casualty 277% 302% 267%2 Life and Health 5.2 38.2 40.7 €40.7bn Market 9.9 Credit 4.0 €15.3bn 13.8 13.5 Operational risk 1.4

25. Slide 25: Modelling of negative interest rates

    Risk management Modelling of negative interest rates – Safeguards consistency between business management and risk model Recognition of negative interest rates  Reflect negative interest rates in valuation models –  Rethink business model, e.g. reinvestment rules in particular, when valuing option

26. Slide 26: Strong SII ratio

    Risk management Strong SII ratio SII ratio development1 302% –19 –16 18 –16 –1 267% SII ratio Opening adjustments Capital Expectation Operating and Capital SII ratio 31.12.2015 incl. model changes measures non-op. variances market variances 31.12.2016 EOF €40.7bn 0.0 –2.3 2.5 –1.1 0.8 €40.7bn SCR €1

27. Slide 27: Risk profile reflects Munich Re's business model

    Risk management Risk profile reflects Munich Re’s business model – Focus on insurance risks Relative SCR contributions, given the occurrence of a stress scenario of varying magnitude Frequency High frequency, low severity 1-in-5 years Dominated by market risk, e.g. FX and interest-rate risk (incl. s

28. Slide 28: SII ratio remains comfortable in typical stress scenarios

    Risk management SII ratio remains comfortable in typical stress scenarios SII ratio sensitivity1 Spread Gov +100bps (246%)5  Reduced interest rates and Interest rates Spread Corporates recognition of negative interest –50bps2 +100bps (248%) (240%)5 rates in internal model contribute equally to incr

29. Slide 29: ERGO

    ERGO Analysts' conference 2017 29

30. Slide 30: ERGO Strategy Programme fully on track seven months after announcement

    ERGO ERGO Strategy Programme (ESP) fully on track seven months after announcement ESP guidance as at 1 June 2016 Actual 2016 2016 2017 2020 Total premiums1 13,202 13,180 – 13,460 Slightly Net profit –40 130 ~450 negative Investments2 (net) –247 –302 –259 –1,0083 Total cost savings (net) 30 30 963 27

31. Slide 31: ESP – Timeline

    ERGO ESP – Timeline Fit Workers´ Sales: Implementation of Go-live of separate council has New organisational new structures in organisational entity agreed on major topics setup implemented admin and central “Traditional Life” functions Digital 30 June IT workers´ Digital IT fully More than council

32. Slide 32: Life and Health Germany – Status 2016

    ERGO Life and Health Germany – Status 2016 Gross premiums written Net result ROI €9.2bn €114m 3.6% Successful launch of new risk- Above expectation, given High investment result – Positive type product (“Solo-BU”) – restructuring expenses contribution from derivatives 24,000 policies sold and dispos

33. Slide 33: Life Germany – New organisational setup

    ERGO Life Germany – New organisational setup to support comprehensive management of back book Organisational changes Comprehensive management  Separation of traditional life back book  Long duration of fixed-income portfolio keeps average (approx. €3.7bn in premium volume and >5m policies) yield a

34. Slide 34: Property-casualty Germany – Status 2016

    ERGO Property-casualty Germany – Status 2016 Gross premiums written Net result Combined ratio €3.2bn –€72m 97.0% Profitable growth Impacted by strategic investments Better than ESP1 guidance in almost all lines of business and restructuring charges – (–1%-pt.) In line with expectations Product innov

35. Slide 35: Property-casualty Germany – Attractive portfolio for customers, consistent cost reduction

    ERGO Property-casualty Germany – Attractive portfolio for customers, consistent cost reduction P-C Germany – Combined ratio Product innovations 99  Launch of new cyber product in 2016 98 ESP Guidance  Start of new modular product concept in H2 2016 96 Actual (motor and private liability) 97 93  F

36. Slide 36: International – Status 2016

    ERGO International – Status 2016 P-C – Gross premiums written Life – Gross premiums written €2.5bn €1.2bn Strong new business growth, De-risking classical life business – driven by Poland Italy, Belgium P-C – Combined ratio Net result 99.0% –€82m Improvement in Poland – Restructuring of Belgian Reco

37. Slide 37: International strategy embedded in ERGO Strategy Programme

    ERGO International strategy embedded in ERGO Strategy Programme (ESP) to achieve ambitious goals Further detailed Fit Digital Successful! Governance Best practice exchange Interlocked business model 1 ▪ Central steering with dedicated ▪ Interregional transfer of capabilities, e.g. reinsurance/primar

38. Slide 38: ERGO governance system ensures effective application of technical excellence

    ERGO 1 ERGO governance system ensures effective application of technical excellence in all business segments Global product functions Property-casualty Life and Health Financial Products Steering of product development and portfolio optimisation Shared targets and P&L responsibility Global standards

39. Slide 39: ERGO International portfolio focuses on three pillars

    ERGO 2 ERGO International portfolio focuses on three pillars Rank Share Strong presence in selected developed markets Specialised global business expertise Promising exposure in prioritised growth markets GWP, GWP, Expected 2016 Focus Market 2016 GWP3, CAGR, Country €m segment position5 Existing glo

40. Slide 40: ESP facilitates an interlocked business model between primary insurance and reinsurance

    ERGO 3 ESP facilitates an interlocked business model between primary insurance and reinsurance Strategy Product Sales and Risk analysis/ Policy Claims Asset Innovation HR development development distribution underwriting administration management management  Leverage  Joint  Link  International

41. Slide 41: Primary health insurance business of Munich Health managed by ERGO

    ERGO 4 The primary health insurance business of Munich Health will be managed by ERGO in 2017 Rank Share Total premiums Countries 20161, €m JV Market position Spain 710 4 7% Munich Health Belgium 515 2 21% primary insurance Abu Dhabi 2585 1 50% business India 77 7 3% Scandinavia 33 22/53 232/53% IPM

42. Slide 42: International business to contribute substantially to ERGO's results by 2020

    ERGO International business to contribute substantially to ERGO’s results by 2020 Germany1 International Munich Health PI Total Net profit, €m Total premium, €m Total premium incl. JVs, €m ▪ Reduction of traditional back ~+€1,800m book in ~+€900m international Life 20,900 business between ~600+ 19,5

43. Slide 43: Reinsurance Property-casualty

    Reinsurance Property-casualty Analysts' conference 2017 43

44. Slide 44: Reinsurance Property-casualty – Financials 2016

    Reinsurance Property-casualty – Financials 2016 Strong 2016 result at the upper end of guidance – Reinsurance P-C remains profitable core of our business Gross premiums written Net result RoI €17.8bn €2.0bn 2.5% Active cycle and Strong technical result – No active harvesting – portfolio management m

45. Slide 45: Strategic positioning – Good position to manage the soft cycle

    Reinsurance Property-casualty – Strategic positioning Munich Re in good position to manage the soft cycle – and well prepared to shape tomorrow’s challenges Traditional reinsurance p-c Risk Solutions Innovation €13bn €4.8bn €650m1 Diversified portfolio, Continuous growth in Steady expansion of strin

46. Slide 46: Resilient January renewals – Client-centric approach pays off

    Reinsurance Property-casualty – January renewals 2017 Resilient January renewals – Client-centric approach pays off Market developments January renewals Munich Re  Abundant reinsurance capital, Price change  Well positioned to counter- –0.5% but signs of price stabilisation balance regional rate d

47. Slide 47: Best-in-class solutions in mature markets

    Reinsurance Property-casualty – Traditional portfolio Best-in-class solutions in mature markets – Dynamic growth and opportunities in emerging markets Structured, holistic 3-year programme First foreign reinsurer to establish branch in for regional US client India – Highly dynamic insurance market N

48. Slide 48: Rigorous portfolio and cycle management

    Reinsurance Property-casualty – Traditional portfolio Rigorous portfolio and cycle management ensures portfolio profitability above cost of capital Portfolio management based on economic management principles1 ILLUSTRATIVE High CAGR: ~–6% Property  Property Other Continuous reduction as economic pr

49. Slide 49: Preferred partner for large, customised transactions

    Reinsurance Property-casualty – Traditional portfolio Preferred partner for large, customised transactions – Strong deal pipeline in all markets Profitability1 % Property Casualty Tailor-made  Highly structured treaties with Traditional RI lower risk-capital consumption – competitive advantage due

50. Slide 50: Ongoing investments in underwriting excellence and innovation

    Reinsurance Property-casualty – Traditional portfolio Ongoing investments in underwriting excellence and in innovation strengthen our position as premium provider Investments1 €m  Understand clients steering metrics 200 from a regulatory, accounting and rating perspective to support clients in trad

51. Slide 51: Risk Solutions – Active portfolio management and investments

    Reinsurance Property-casualty – Risk Solutions Risk Solutions – Active portfolio management and investments to secure strong earnings contribution Gross premiums written Combined ratio €4.8bn 95.4% Topline consolidation following strong Hartford Steam Boiler with highest result growth in past years

52. Slide 52: Munich Re fosters innovation throughout the global organisation

    Reinsurance Property-casualty – Innovation Munich Re fosters innovation throughout the global organisation – Strong focus on tangible business impact Significant focus on innovation … … with significant impact on business already today Innovation Innovation scouting infrastructure Innovation labs Id

53. Slide 53: Strong long-term growth in cyber (re)insurance expected

    Reinsurance Property-casualty – Innovation areas: Cyber (re)insurance Strong long-term growth in cyber (re)insurance expected – Munich Re with leading-edge expertise and market presence 1 New (re)insurance products GWP global cyber insurance market1 US$ bn GWP Munich Re cyber portfolio US$ m 10 RoW

54. Slide 54: Focus areas: IoT, corporate partnering and data analytics

    Reinsurance Property-casualty – Innovation areas Focus areas: Internet of Things (IoT), corporate partnering and data analytics 2 New business models 3 New clients and demands 4 New risk-related services IoT is expected to disrupt the Digital Partners – Partnering with Most advanced data (re)insuran

55. Slide 55: Reinsurance Life

    Reinsurance Life Analysts' conference 2017 55

56. Slide 56: Very pleasing operating economic performance

    Reinsurance Life Very pleasing operating economic performance – Strong IFRS technical result exceeding benchmark Gross premiums written Technical result Net result €10.0bn €487m €459m Reduction of large deals, increasing Well above guidance – North America, Sound result contribution contribution fro

57. Slide 57: Unchanged strong positioning in all major markets

    Reinsurance Life – Overview of major markets Unchanged strong positioning in all major markets – Two large portfolio transfer transactions Canada UK  Stabilising volumes and margins  Unattractive margins in protection business pressure – profitability still sound  Promising proposition for FinMoR

58. Slide 58: Initiative portfolio

    Reinsurance Life – Initiative portfolio Initiative portfolio – Important IFRS profit pool and significant contribution to economic earnings Initiative portfolio Higher ILLUSTRATIVE FinMoRe Asia FinMoRe Asset Well established value proposition protection Longevity Asia Morbidity Sustained growth supp

59. Slide 59: Innovation has top priority – Concrete projects underway

    Reinsurance Life – Innovation Innovation has top priority – Concrete projects underway New ILLUSTRATIVE Efficient business Successful set of processes and new risk-related services Focus on innovation projects well established initiatives  Clients outsource parts of Asia services to us Longevity 

60. Slide 60: Financial outlook 2017

    Reinsurance Life – Outlook Financial outlook 2017 IFRS technical result Outlook 2017 Adjusted Target €400m Technical result plus fee income of at least €487m 420 €450m 359 335 279  USA  Canada  Europe  Australia  Africa/Latin America  Technical interest  Asia  Longevity  Asset protection 20

61. Slide 61: Additional information

    Additional information Analysts' conference 2017 61

62. Slide 62: Turning risk into sustainable value – Corporate Responsibility

    1 Additional information: Corporate Responsibility Turning risk into sustainable value – Company success through responsibility Commitments… … implementation … … external recognition Environmental, Social, Governance (ESG) Group-wide carbon-neutrality since 2015; shared- value projects closely relat

63. Slide 63: Innovation: strong position to tap opportunities

    1 Additional information: Shaping change in insurance Innovation: Munich Re has established a strong position to tap opportunities – focus on tangible business impact Munich Re has successfully laid the groundwork … … to seize opportunities from digitalisation Innovation  Defined innovation areas B

64. Slide 64: Strong capital position facilitates financial flexibility

    2 Additional information: Group Finance – Economic view Strong capital position according to all metrics facilitates financial flexibility, including high shareholder distribution Solvency II IFRS German GAAP/Rating 302 31.0 €31.8bn €10.1bn 277 30.3 9.8 267% 9.1 2014 2015 2016 2014 2015 2016 2014 20

65. Slide 65: Reconciliation of economic earnings to IFRS result 2016

    2 Additional information: Group Finance – Economic key financials Reconciliation of economic earnings to IFRS result 2016 Goodwill/intangibles Not recognised in Solvency II – IFRS result 1.3 –0.4 burdened by minor negative effects of other 3.1 –0.5 intangible assets as well as ERGO goodwill €2.6bn i

66. Slide 66: Reconciliation of IFRS (Group) to German GAAP (HGB) result

    2 Additional information: Group Finance – German GAAP (HGB) Reconciliation of IFRS (Group) to German GAAP (HGB) result (Munich Reinsurance Company) Equalisation provision €bn Maximum requirement ILLUSTRATIVE 1.0 €3.4bn 9.1 9.8 10.1 €2.6bn –0.3 0.1 6.6 7.7 IFRS Change of Distributions vs. Other HGB 2

67. Slide 67: Economic earnings 2016 – Munich Re (Group)

    2 Additional information: Group Finance – Results reconciliation Economic earnings 2016 – Munich Re (Group) Outlook 2017: In the range of IFRS result target €bn Actual Normalised Operating economic earnings Operating economic earnings 1.4 2.0  High operating economic earnings in reinsurance compens

68. Slide 68: Change in eligible own funds (EOF)

    2 Additional information: Group Finance – Economic key financials Change in eligible own funds (EOF) EOF 31.12.2015 €40.7bn Closing balance subject to SII Day-1 reporting FY2015 Opening Model changes, other offsetting effects, e.g. consolidation group adjustments 0.0 changes EOF Opening balance afte

69. Slide 69: P&L attribution – Pleasing economic earnings overall

    2 Additional information: Group Finance – Economic key financials P&L attribution – Pleasing economic earnings overall Reinsurance compensates for adverse development at ERGO Munich Re (Group) 2016 Reinsurance Reinsurance ERGO ERGO ERGO Munich Munich Re €bn Life P-C L/H Germany P-C Germany Internati

70. Slide 70: Reconciliation of IFRS equity to eligible own funds

    2 Additional information: Group Finance – Solvency II and Rating Reconciliation of IFRS equity to eligible own funds IFRS equity 31.12.2016 €31.8bn Goodwill and intangible assets –3.6 Valuation adjustments 5.6 6.9 Surplus funds (‘free RfB’) 2.3 Excess of assets over liabilities 37.4 Subordinated lia

71. Slide 71: From IFRS to Solvency II excess of assets over liabilities

    2 Additional information: Group Finance – Economic view – Solvency II From IFRS to Solvency II excess of assets over liabilities €bn Assets/Liabilities (clustered) as at 31.12.2016 SII IFRS  Comments Goodwill and intangible assets1 0.0 3.6 –3.6 No recognition of goodwill and intangible assets in SI

72. Slide 72: 2016 net result meets annual guidance

    2 Additional information: Group Finance – Financial highlights 2016 2016 net result meets annual guidance Munich Re (Group) 2016 (Q4 2016) Net result Technical result €m Investment result €m Net result €m €2,581m (Q4: €486m) 3,924 7,536 7,567 Sound underlying performance without 3,122 dilution of st

73. Slide 73: IFRS capital position

    2 Additional information: Group Finance – Capitalisation IFRS capital position Equity €m Capitalisation €bn Equity 31.12.2015 30,966 Change Q4 0.4 0.4 0.4 0.4 0.4 0.3 Consolidated result 2,581 486 4.3 4.3 4.2 4.2 4.4 4.4 Changes Dividend –1,329 – Unrealised gains/losses 265 –2.049 Exchange rates 345

74. Slide 74: Premium development

    2 Additional information: Group Finance Premium development Gross premiums written €m Segmental breakdown €m Reinsurance ERGO 2015 50,374 Property-casualty Life and Health Germany 17,826 (36%) ( 0.8%) 9,177 (19%) ( –2.7%) Foreign exchange –912 ERGO Property-casualty Germany 3,194 (7%) ( 1.0%) Div

75. Slide 75: Reconciliation of operating result with net result

    2 Additional information: Group Finance Reconciliation of operating result with net result Reconciliation of operating result with net result €m 2016 Q4 2016 Operating result 4,025 823 Other non-operating result –437 –123 Goodwill impairments –28 –19 Net finance costs –219 –57 Taxes –760 –137 Net re

76. Slide 76: Short-term earnings pressure mitigated by strong balance sheet

    2 Additional information: Group Finance Short-term earnings pressure mitigated by strong balance sheet Investment result €bn P-C reinsurance – Release of loss reserves1 % Ongoing disposal gains Lower reinvestment yields Strong reserving position Reinsurance cycle Net disposal gains Unrealised gains

77. Slide 77: Reserving: Global hot spots well controlled

    2 Additional information: Group Finance Reserving: Global hot spots well controlled – Provisions for risk scenarios adequately set Motor liability Industry impact Munich Re impact Casualty Industry impact Munich Re impact USA USA Distracted driving, Continued increasing Limited impact due to very sm

78. Slide 78: Actual versus expected comparison

    2 Additional information: Group Finance Actual versus expected comparison – Loss-monitoring yields consistent picture across years Reinsurance group – Comparison of incremental expected losses with actual reported losses1 €m By exposure year By line of business 10,000 10,000 Actual reported loss Act

79. Slide 79: Positive run-off result without weakening resilience

    2 Additional information: Group Finance – IFRS view – Reserving position Positive run-off result without weakening resilience against future volatility Ultimate losses1 (adjusted to exchange rates as at 31.12.2016) €m Ultimate reduction Accident year (AY) Prior-year releases of €1.4bn Date ≤2006 200

80. Slide 80: Response to benign emergence of basic losses

    2 Additional information: Group Finance – Reserves – Property-casualty – Reinsurance Response to benign emergence of basic losses in line with considered judgement Actual vs. expected Changes in projection Business rationale Property Releases follow favourable indications Reserve release  Positive

81. Slide 81: Property-casualty provision for outstanding claims

    2 Additional information: Group Finance – Reserves – Property-casualty – Reinsurance Property-casualty provision for outstanding claims By line of business % By maturity % Other >15 years Third party liability 0–1 years 1 6 41 32 Aviation 3 10–15 years 5 Credit 3 TOTAL 5–10 years TOTAL €40.5bn 13 €4

82. Slide 82: Asbestos and environmental survival ratio

    2 Additional information: Group Finance – Reserves Asbestos and environmental survival ratio 31 December 2016 Munich Re (Group) – Net definitive as at 31 December 20161 €m Asbestos Environmental A&E total Paid 3,353 1,001 4,353 Case reserves 486 148 634 IBNR 821 238 1,059 Total reserves 1,307 386 1,

83. Slide 83: Investment portfolio

    2 Additional information: Group Finance – Investment portfolio Investment portfolio Investment portfolio1 % Portfolio management in Q4 Land and buildings Fixed-interest securities  Ongoing geographic diversification 2.9 (2.9) 56.3 (55.7)  Slight decrease in corporate bonds Shares, equity funds and

84. Slide 84: Investment result

    2 Additional information: Group Finance – Investment result Investment result Investment result (€m) Q4 2016 Return1 2016 Return1 2015 Return1 Regular income 1,662 2.8% 6,663 2.8% 7,370 3.1% Write-ups/write-downs –115 –0.2% –400 –0.2% –754 –0.3% Disposal gains/losses 779 1.3% 2,603 1.1% 2,693 1.1% D

85. Slide 85: Breakdown of regular income

    2 Additional information: Group Finance – Investments Breakdown of regular income Investment result – Regular income (€m) Q4 2016 2016 2015 Change Afs fixed-interest 773 3,200 3,528 –328 Afs non-fixed-interest 113 556 618 –62 Derivatives 27 114 137 –23 Loans 548 2,063 2,098 –35 Real estate 103 405 3

86. Slide 86: Breakdown of write-ups/write-downs

    2 Additional information: Group Finance – Investments Breakdown of write-ups/write-downs Investment result – Write-ups/write-downs (€m) Q4 2016 2016 2015 Change Afs fixed-interest 1 1 –51 52 Afs non-fixed-interest –26 –323 –488 165 Loans –11 –37 –45 8 Real estate 4 –51 –65 13 Deposits retained on as

87. Slide 87: Breakdown of net result from disposals

    2 Additional information: Group Finance – Investments Breakdown of net result from disposals Investment result – Net result from disposal of investments (€m) Q4 2016 2016 2015 Change Afs fixed-interest 543 1,656 1,413 243 Afs non-fixed-interest 105 440 1,018 –578 Loans 100 606 103 504 Real estate 15

88. Slide 88: Return on investment by asset class and segment

    2 Additional information: Group Finance – Investments Return on investment by asset class and segment 2016 %1 Regular income Write-ups/-downs Disposal result Extraord. derivative result Other inc./exp. RoI ᴓ Market value (€m) Afs fixed-income 2.4 0.0 1.3 0.0 0.0 3.7 131,623 Afs non-fixed-income 3.9

89. Slide 89: Investment result by segment

    2 Additional information: Group Finance – Investments Investment result by segment Reinsurance Life (€m) Q4 2016 Return1 2016 Return1 2015 Return1 Regular income 189 3.1% 695 2.9% 898 3.4% Write-ups/write-downs –18 –0.3% –35 –0.1% –68 –0.3% Disposal gains/losses 18 0.3% 157 0.7% 265 1.0% Derivatives

90. Slide 90: Investment result by segment

    2 Additional information: Group Finance – Investments Investment result by segment ERGO Life and Health Germany (€m) Q4 2016 Return1 2016 Return1 2015 Return1 Regular income 864 2.8% 3,588 2.9% 3,853 3.3% Write-ups/write-downs –11 –0.0% –181 –0.1% –196 –0.2% Disposal gains/losses 344 1.1% 1,188 1.0%

91. Slide 91: Investment result by segment

    2 Additional information: Group Finance – Investments Investment result by segment ERGO International (€m) Q4 2016 Return1 2016 Return1 2015 Return1 Regular income 82 2.3% 407 3.0% 506 3.0% Write-ups/write-downs 2 0.0% 2 0.0% –69 –0.4% Disposal gains/losses 311 8.6% 387 2.8% 92 0.5% Derivatives2 –47

92. Slide 92: Investment portfolio

    2 Additional information: Group Finance – Investments Investment portfolio Fixed-interest securities and miscellaneous Investment portfolio % Fixed-interest securities1 % Miscellaneous Fixed-interest securities Structured products Governments/ 6.2 (7.5) 56.3 (55.7) 4 (5) Semi-government Corporates 6

93. Slide 93: Fixed-income portfolio

    2 Additional information: Group Finance – Investments Fixed-income portfolio Total Fixed-income portfolio % Loans to policyholders/ Governments/ mortgage loans semi-government 3 (3) 53 (52) Structured products 2 (2) Bank bonds TOTAL 3 (3) €207bn Cash/other 4 (4) Corporate bonds 11 (10) Pfandbriefe/c

94. Slide 94: Fixed-income portfolio

    2 Additional information: Group Finance – Investments Fixed-income portfolio Total Rating structure % Regional breakdown % NR AAA Without With Total 5 (6) 44 (42) policyholder participation 31.12.2016 31.12.2015 BB Germany 4.3 23.9 28.2 29.2 2 (2) TOTAL US 14.7 1.3 16.0 16.4 €207.4bn France 2.3 5.7

95. Slide 95: Fixed-income portfolio – Governments/semi-government

    2 Additional information: Group Finance – Investments Fixed-income portfolio Governments/semi-government Rating structure % Regional breakdown % BB AAA Without With Total 2 (2) 45 (46) policyholder participation 31.12.2016 31.12.2015 BBB Germany 3.7 23.1 26.7 27.4 9 (10) TOTAL US 17.2 0.8 18.0 18.9

96. Slide 96: Fixed-income portfolio – Pfandbriefe/covered bonds

    2 Additional information: Group Finance – Investments Fixed-income portfolio Pfandbriefe/covered bonds Rating structure % Regional breakdown % NR AAA 31.12.2016 31.12.2015 2 (0) 70 (66) Germany 35.2 34.2 France 19.9 18.5 BBB UK 8.6 8.5 1 (3) TOTAL Netherlands 7.4 7.1 Sweden 6.0 5.9 A €48.7bn Norway

97. Slide 97: Fixed-income portfolio – Corporate bonds

    2 Additional information: Group Finance – Investments Fixed-income portfolio Corporate bonds (excluding bank bonds) Rating structure % Regional breakdown % NR AAA 31.12.2016 31.12.2015 0 (1) 1 (1) Utilities 18.5 21.1 <BB Industrial goods and services 12.5 12.7 1 (2) TOTAL AA Oil and gas 11.8 10.9 BB

98. Slide 98: Fixed-income portfolio – Bank bonds

    2 Additional information: Group Finance – Investments Fixed-income portfolio Bank bonds Rating structure % Regional breakdown % Total NR AAA Senior bonds Subordinated Loss-bearing 31.12.2016 31.12.2015 2 (2) 0 (0) US 32.2 6.1 0.3 38.6 36.7 Germany 18.0 1.3 4.0 23.3 24.3 <BB UK 6.6 0.8 0.2 7.6 8.7 1

99. Slide 99: Fixed-income portfolio – Structured products

    2 Additional information: Group Finance – Investments Fixed-income portfolio Structured products Structured products portfolio (at market values): Breakdown by rating and region % Rating Region AAA AA A BBB <BBB NR USA + RoW Europe Total Market-to-par ABS Consumer-related ABS1 300 372 13 5 0 1 264 4

100. Slide 100: Sensitivities to interest rates, spreads and equity markets

     2 Additional information: Group Finance – Investments Sensitivities to interest rates, spreads and equity markets Sensitivity to risk-free interest rates – Basis points4 –50 –25 +50 +100 Change in gross market value (€bn) +8.7 +4.3 –8.1 –15.5 Change in on-balance-sheet reserves, net (€bn)1 +2.0 +1.0

101. Slide 101: On and off-balance-sheet reserves (gross)

     2 Additional information: Group Finance – Investments On and off-balance-sheet reserves (gross) €m 31.12.2014 31.12.2015 30.6.2016 30.9.2016 31.12.2016 Market value of investments 235,849 230,529 237,519 241,824 236,153 Total reserves 31,470 25,969 34,530 36,401 28,496 On-balance-sheet reserves Fixe

102. Slide 102: On-balance-sheet reserves

     2 Additional information: Group Finance – Investments On-balance-sheet reserves On-balance-sheet reserves €m 31.12.2016 Change Q4 Investments afs 11,573 –4,862 Valuation at equity 80 4 Unconsolidated affiliated enterprises 90 5 Cash flow hedging 16 –6 Total on-balance-sheet reserves (gross) 11,759 –

103. Slide 103: Off-balance-sheet reserves

     2 Additional information: Group Finance – Investments Off-balance-sheet reserves Off-balance-sheet reserves €m 31.12.2016 Change Q4 Real estate1 2,413 223 Loans 13,591 –3,399 Associates 733 130 Total off-balance-sheet reserves (gross) 16,738 –3,046 Provision for deferred premium refunds –12,189 2,68

104. Slide 104: Specifics of Munich Re's Group Internal Model

     3 Additional information: Risk management – Risk disclosure Specifics of Munich Re’s Group Internal Model (GIM) Specific features of GIM Relevant driver of capital requirements  GIM approved by core college (BaFin, PRA, MFSA) covers  Migration, default (credit risk) and spread variations all risk

105. Slide 105: Breakdown of solvency capital requirement by risk category and segment

     3 Additional information: Risk management – Risk disclosure Breakdown of solvency capital requirement (SCR) by risk category and segment Group RI ERGO MH Div. Risk category (€bn) 2015 2016 Delta 2016 2016 2016 2016 Remarks Property-casualty 6.3 6.8 +0.4 6.7 0.4 – –0.3 Appreciation of US$ Life and He

106. Slide 106: Property-casualty risk – High global diversification

     3 Additional information: Risk management – Property-casualty risk Property-casualty risk – High global diversification, both within nat cat risks and between major and basic losses Nat cat exposure (net of retrocession) – AggVaR1 €bn SCR property-casualty €bn 5 Top 5 exposures 6.3 6.8 1 Atlantic Hu

107. Slide 107: Life and Health risk

     3 Additional information: Risk management – Life and Health risk Life and Health risk Slight increase mainly driven by Reinsurance Life Life and Health – VaR1 €bn SCR Life and Health €bn Longevity 1.7 1.5 5.2 4.7 Mortality 3.6 3.2 Morbidity 2.7 2.6 Health 0.6 2016 0.6 2015 2015 2016 Longevity2 Morta

108. Slide 108: Market risk – Increase driven by lower interest rates

     3 Additional information: Risk management – Market risk Market risk – Increase driven by lower interest rates and full recognition of negative interest rates in the internal model Solvency capital requirement €bn Risk category Group RI/MH ERGO Div. 2015 2016 2016 2016 2016 Remarks Equity 3.7 3.8 3.1

109. Slide 109: Market risk – Well balanced profile

     3 Additional information: Risk management – Market risk Market risk – Well balanced profile improves diversification effects Risk contribution (undiversified) % Equity 1 General interest rate Credit spread Real estate Currency 80 60 40 20 0 2010 2011 2012 2013 2014 2 2015 2016 DV01 – Sensitivity to

110. Slide 110: Operational risk – Increase driven by cyber risk exposure

     3 Additional information: Risk management – Operational risk Operational risk – Increase mainly driven by better reflection of rising cyber risk exposure Operational risk scenarios1 – VaR €m Group SCR operational risk €bn 700 Top 4 scenarios2 1.4 1 + 4 Inappropriate financial reporting 1.0 600 (RI,

111. Slide 111: Sensitivities of SII ratio

     3 Additional information: Risk management Sensitivities of SII ratio SII ratio – Sensitivity % Ratio as at 31.12.2016 267 Interest rate +50bps1 284 Interest rate –50bps 1 248 Spread +100bps GOV2 246 Spread +100bps CORP2 240 Equity markets +30% 282 Equity markets –30% 251 FX –20% 266 Inflation +100bp

112. Slide 112: Development of Munich Re's Solvency II ratio

     3 Additional information: Risk management Development of Munich Re’s Solvency II ratio Munich Re actions SII ratio % >220%: Above target capitalisation  Capital repatriation  Increased risk-taking  Holding excess capital to meet external constraints 267% 220% 175% – 220%: Target capitalisation 

113. Slide 113: Munich Re's maximum in-force nat cat protection

     3 Additional information: Risk management – Risk trading Munich Re's maximum in-force nat cat protection Munich Re's maximum in-force nat cat protection as at January 2017 €m Cat bonds 1,500 Risk swaps Sidecars Indemnity retro 1,000 500 0 US windstorm US windstorm US earthquake EU windstorm EU other

114. Slide 114: ESP – Update Fit, Digital & Successful!

     4 Additional information: ERGO ESP – Update “Fit, Digital & Successful!” Elements Achievements 2016 Fit F1 Sales F2 Administration  Bundling of sales forces into one tied-agent organisation  Despite restructuring, sales volume exceeded forecast (+12%) F3 Governance F4 Life Germany  Workers’ counc

115. Slide 115: ERGO Life and Health Germany

     4 Additional information: ERGO ERGO Life and Health Germany 2016 vs. 2015 Gross premiums written €m Major result drivers €m Technical result 2015 9,426 2016 2015   Q4: Positive effect from technical interest Foreign exchange –25 Technical result 370 293 77 due to refined calculation method Non-tec

116. Slide 116: Life Germany – Key figures and ZZR

     4 Additional information: ERGO Life Germany – Key figures and ZZR Average yield vs. average guarantee ZZR reference rate – Projection2 % ZZR – Low interest-rate reserve Guarantee level ILLUSTRATIVE 4% ILLUSTRATIVE 3.92  Local GAAP reserve against low 4.00 3.75 Reference rate interest rates 3.50 Inc

117. Slide 117: ERGO Life Germany: Total premiums and new business

     4 Additional information: ERGO ERGO Life Germany: Total premiums and new business, incl. direct business (statutory premiums) Total premiums (€m)   2016 2015 abs. % Gross premiums written 3,380 3,628 –248 –6.8 Statutory premiums 832 896 –64 –7.1 Total premiums 4,212 4,524 –311 –6.9 New business (€

118. Slide 118: Life Germany – Sufficient cash flow buffers

     4 Additional information: ERGO Life Germany – Sufficient cash flow buffers 10,000 Surplus/deficit Cumulated surplus years 1-40 €1,844m 8,000 Guarantee and expenses From fixed income and premiums Non-fixed-income assets €4,291m 6,000 Market value swaptions €2,412m 4,000 Available as buffer €8,548m 2,

119. Slide 119: Health Germany – Stabilise comprehensive insurance

     4 Additional information: ERGO Health Germany – Stabilise comprehensive insurance, strengthen supplementary insurance Market view on comprehensive insurance1 €bn ERGO business mix – Gross premiums written % 4.9 ERGO 12.4% 3.6 €5.2bn 2.6 2.5 2.2 MARKET VOLUME €4.4bn €29bn Comprehensive insurance ERGO

120. Slide 120: ERGO Property-casualty Germany (1)

     4 Additional information: ERGO ERGO Property-casualty Germany (1) 2016 vs. 2015 Gross premiums written €m Major result drivers €m Technical result 2015 3,162 2016 2015   FY: Combined ratio of 97.0% better than Foreign exchange –17 Technical result 139 122 17 2015; ESP impact on combined ratio Dive

121. Slide 121: ERGO Property-casualty Germany (2)

     4 Additional information: ERGO ERGO Property-casualty Germany (2) Combined ratio % Gross premiums written1 €m  Loss ratio  Expense ratio Other Motor 379 (336) 671 (663) 2014 95.3 63.1 32.2 2015 97.9 64.7 33.2 2016 97.0 61.9 35.1 Legal protection 401 (395) Q4 2016 100.0 63.7 36.2 TOTAL €3,194m 103.

122. Slide 122: ERGO International portfolio focuses on three pillars

     4 Additional information: ERGO ERGO International portfolio focuses on three pillars Rank Share Strong presence in selected developed markets Specialized global business expertise Promising exposure in prioritized growth markets GWP, GWP, GWP3, Expected 2016 Focus Market 2016 2016 Seg- Market CAGR,

123. Slide 123: ERGO International

     4 Additional information: ERGO ERGO International 2016 vs. 2015 Gross premiums written €m Major result drivers €m Technical result 2015 3,947 2016 2015  Life: (–€291m) (FY) Foreign exchange –119 Technical result –132 33 –166  Extraordinary DAC write-downs in Non-technical result 383 35 348 Belgium

124. Slide 124: ERGO International – Property-casualty

     4 Additional information: ERGO ERGO International – Property-casualty Combined ratio % Gross premiums written – Property-casualty1 €m  Loss ratio  Expense ratio Other Poland 383 (366) 971 (884) 2014 97.3 58.5 38.8 TOTAL Greece 2015 104.7 65.3 39.4 192 (140) €2,502m (€2,392m) 2016 99.0 59.1 39.9 Tu

125. Slide 125: International life: Total premiums and new business

     4 Additional information: ERGO International life: Total premiums and new business (statutory premiums) Total premiums (€m)   2016 2015 abs. % Gross premiums written 1,161 1,555 –394 –25.3 Statutory premiums 369 435 –67 –15.3 Total premiums 1,530 1,991 –461 –23.1 New business (€m)   2016 2015 ab

126. Slide 126: ERGO – Economic earnings

     4 Additional information: ERGO – Economic earnings ERGO – Economic earnings ERGO 2016 L/H P-C Inter- New business value €bn Germany Germany national  New business value L/H Germany mainly from health business Operating economic earnings –0.4 –0.1 –0.1  ERGO Hestia Poland non-life with increasing p

127. Slide 127: Remaining resilient to pressure on rates with a client-centric approach

     5 Additional information: Reinsurance Property-casualty – January renewals 2017 Remaining relatively resilient to pressure on rates with a client-centric approach Rate changes January renewals % Current market developments Implications for Munich Re Europe/Latin America  Reinsurance capital remaine

128. Slide 128: January renewal outcome in line with expectations

     5 Additional information: Reinsurance Property-casualty – January renewals 2017 January renewal outcome in line with expectations Munich Re portfolio – Premium change in major business lines Total Property Casualty Specialty lines Business line Prop. XL Prop. XL Marine Credit Aviation Premium split1

129. Slide 129: Lasting client relationships and know-how-oriented services

     5 Additional information: Reinsurance Property-casualty – January renewals 2017 Lasting client relationships and our know-how-oriented services offer growth opportunities in a competitive market Total P-C book1 Treaty business January April July Remaining January2 Worldwide Asia/Pacific/ Worldwide R

130. Slide 130: Traditional book and Risk Solutions complement each other

     5 Additional information: Reinsurance Property-casualty – Portfolio quality Traditional book and Risk Solutions complement each other and provide diversification Total P-C book % 1 Traditional % 2 Risk Solutions % Risk Tailor-made Nat cat XL Casualty Other American Modern Solutions solutions 10 (10)

131. Slide 131: Well balanced portfolio as basis for sustainable earnings

     5 Additional information: Reinsurance Property-casualty – Portfolio quality 1 Well balanced portfolio as basis for sustainable earnings generation Traditional % Portfolio developments Aviation Casualty motor Proportional Facultative Share increases 1 (1) 28 (27) 74 (72) 9 (9)  Proportional casualty

132. Slide 132: Various levers to create value in mature markets

     5 Additional information: Reinsurance Property-casualty – Munich Re strategic positioning 1 Various levers to create value in mature markets – Top-notch expertise and best-in-class solutions as key differentiators Munich Re value contribution Mature markets  Rapid development of tailor-made  Struc

133. Slide 133: Traditional reinsurance book benefits from emerging markets

     5 Additional information: Reinsurance Property-casualty – Munich Re strategic positioning 1 Munich Re’s traditional reinsurance book benefits from dynamic growth and opportunities in emerging markets Munich Re value contribution Emerging markets  Specialised segments and capital  First foreign rei

134. Slide 134: Risk Solutions: Sustainable earnings contribution

     5 Additional information: Reinsurance Property-casualty – Risk Solutions 2 Risk Solutions: Sustainable earnings contribution Gross earned premiums1 €bn Combined ratio1 % Underwriting result1 €bn Share in % of total 95.4 Share in P-C book 5.0 94.1 % of total 42 4.8 4.2 P-C book 3.8 4.0 32 3.4 88.6 25

135. Slide 135: Active portfolio management and IT investments in Risk Solutions

     5 Additional information: Reinsurance Property-casualty – Risk Solutions 2 Active portfolio management and IT investments to manifest value contribution of Risk Solutions Active  Active cycle management to enhance Organic  HSB continues strong growth portfolio profitability growth  Intensified co

136. Slide 136: Munich Re utilising all ART channels

     5 Additional information: Reinsurance Property-casualty – Alternative risk transfer Munich Re utilising all ART channels as instrument for risk management and expanded product range Munich Re channels to tap alternative capacity sources Sidecar programme1 Queen Street programme Retrocession – Protec

137. Slide 137: IoT expected to disrupt the (re)insurance industry

     5 Additional information: Reinsurance Property-casualty – Innovation: New business models – IoT IoT is expected to disrupt the (re)insurance industry – Munich Re well positioned with first tangible results IoT will generate vast amounts of data, with potential IoT-enabled services provide an opportu

138. Slide 138: Corporate partnering: Digital Partners

     5 Additional information: Reinsurance Property-casualty – Innovation: New clients and demands – Digital Partners Corporate partnering: Digital Partners – Partnering with start-ups to digitalise insurance Digital distribution Digital economy Digital data Making insurance like Insuring the sharing Usi

139. Slide 139: Most advanced data analytics platform

     5 Additional information: Reinsurance Property-casualty – Innovation: New risk-related services – Data analytics based services Most advanced data analytics platform with steadily growing users, developing services for existing and new customers Global usage of data analytics platform Data analytics

140. Slide 140: Reinsurance Property-casualty – Economic earnings

     5 Additional information: Reinsurance Property-casualty – Economic earnings Reinsurance Property-casualty – Economic earnings Reinsurance property-casualty – €bn 2016 2015 Operating economic earnings  Reduction of –€1.0bn mainly due to higher outlier losses Operating economic earnings 0.7 1.7 (–€0.

141. Slide 141: Reinsurance Property-casualty

     5 Additional information: Reinsurance Property-casualty Reinsurance Property-casualty 2016 vs. 2015 Gross premiums written €m Major result drivers €m Technical result 2015 17,680 2016 2015   FY: Major loss ratio below expectation Foreign exchange –385 Technical result 1,859 3,116 –1,258 of 12.0% N

142. Slide 142: Combined ratio

     5 Additional information: Reinsurance Property-casualty Combined ratio Combined ratio %  Basic losses  Major losses  Expense ratio 101.9 2014 92.7 53.0 7.2 32.5 99.8 2015 89.7 50.8 6.2 32.6 94.5 2016 95.7 54.2 9.1 32.4 92.3 93.3 Q4 2016 101.9 51.1 14.8 35.9 92.5 88.4 Major Reserve Normalised loss

143. Slide 143: Business up for renewal roughly half of total P-C book

     5 Additional information: Reinsurance Property-casualty – January renewals 2017 Business up for renewal roughly half of total P-C book – Regional focus on Europe Total property-casualty book1 % Regional allocation of January renewals % Remaining business Business up for January renewal Worldwide Eur

144. Slide 144: Further slow-down in price decline

     5 Additional information: Reinsurance Property-casualty – January renewals 2017 Cycle management reduction mitigated by new business opportunities – Further slow-down in price decline January renewals 2017 % 100 –14.4 85.6 –2.7 12.2 95.1  Overall premium decline due €m 8,982 –1,297 7,685 –241 1,094

145. Slide 145: Renewal results

     5 Additional information: Reinsurance Property-casualty – January renewals 2017 Renewal results Year-to-date price change 2010–2017 Nominal Adjusted for interest-rate changes 2.4 1.4 1.0 0.5 0.3 0.2 0.0 –0.1 –0.5 –0.9 –0.8 –1.0 –1.7 –1.6 –1.9 –2.4 2010 2011 2012 2013 2014 2015 2016 2017 1 1 January

146. Slide 146: January renewals 2017 – Split by line of business and region

     5 Additional information: Reinsurance Property-casualty – January renewals 2017 January renewals 2017 – Split by line of business and region Split by line of business % Split by region % 3 Aviation Latin America 52 5 Credit 4 4 8 6 Marine 22 North America 29 39 40 Property 17 Asia/Pacific/Africa 12

147. Slide 147: Reinsurance Life – Economic earnings

     6 Additional information: Reinsurance Life – Economic earnings Reinsurance Life – Economic earnings Reinsurance Life – €bn 2016 2015 New business value  Exceeding expectations, even stronger than last year Operating economic earnings 1.1 1.5  Ongoing very strong contribution from North America and

148. Slide 148: Strong IFRS performance exceeding benchmark

     6 Additional information: Reinsurance Life – IFRS key figures Strong IFRS performance exceeding benchmark Reinsurance Life – €m 2016 2015 Gross premiums written  Overall reduction of premium income as one very large financially- Gross premiums written 10,001 10,536 motivated transaction was only re

149. Slide 149: Economic earnings take prospective view and tend to be more volatile

     6 Additional information: Reinsurance Life – IFRS profit vs Economic Earnings Economic earnings take prospective view and tend to be more volatile than IFRS profits Relationship between IFRS profit and economic earnings ILLUSTRATIVE Underwriting years New business value 2016 Economic earnings  Imme

150. Slide 150: IFRS profit an image of the unwinding of NBVs

     6 Additional information: Reinsurance Life – IFRS profit vs Economic Earnings IFRS profit an image of the unwinding of NBVs Translation of NBV into IFRS earnings ILLUSTRATIVE NBV IFRS profit vs NBV  IFRS profit reflects the structure of the portfolio as built in all preceding underwriting years Fin

151. Slide 151: Well diversified global portfolio

     6 Additional information: Reinsurance Life – Overview of major markets Well diversified global portfolio 35% Continental 65% 30% 10% Europe 60% 25% Mortality 65 % Canada 65% Morbidity 25 % United 10% Kingdom Longevity 10 % 15% 40% Asia 60% NA 60 % USA Europe 20 % 85% 70% 30% Asia 10 % Latin America

152. Slide 152: Financially Motivated Reinsurance

     6 Additional information: Reinsurance Life – Initiative portfolio Financially Motivated Reinsurance – Well established value proposition, strong demand prevails Gross premiums written Technical result and fee income NBV1 €m % of total Technical result Fee income % of total 257 4,536 % of total 136 4

153. Slide 153: Asia – Vital new business production secures growth

     6 Additional information: Reinsurance Life – Strategic focus Asia – Vital new business production secures growth across the region Gross premiums written €m Technical result and fee income €m NBV1 €m % of total Technical result Fee income % of total 1,178 % of total 86 85 198 1,008 9 180 872 871 910

154. Slide 154: Longevity – Book developed carefully

     6 Additional information: Reinsurance Life – Initiative portfolio Longevity – Book developed carefully in line with risk appetite Gross premiums written €m Liability assumed p.a. €m Strategic proposition 2,788  Longevity considered to be primarily a risk % of total 484 management tool to balance mo

155. Slide 155: Asset protection

     6 Additional information: Reinsurance Life – Initiative portfolio Asset protection – Comprehensive solutions to non-biometric financial risks IFRS contribution margin1 €m Product portfolio Strategic proposition  Solutions to Basel III and Solvency II needs  Wide range of tailor-made solutions 44 

156. Slide 156: NBV supported by major portfolio transactions

     6 Additional information: Reinsurance Life – Strategic focus NBV supported by major portfolio transactions Two transactions executed in 2016  Relevance in M&A situations as well as Citi Group, US acquisition or transfer of in-force portfolios  Purchase of a block of Canadian term-life insurance po

157. Slide 157: Financial outlook 2017

     6 Additional information: Reinsurance Life – Outlook Financial outlook 2017 IFRS technical result €m Actual Adjusted Target €400m Result increases as new business is profitable and USA back-book is being run off 487 420 Canada Significant profit pool with stable outlook 359 335 Europe Healthy IFRS r

158. Slide 158: Reinsurance Life

     6 Additional information: Reinsurance Life Reinsurance Life 2016 vs. 2015 Gross premiums written €m Major result drivers €m Technical result 2015 10,536 2016 2015   FY: Result well above annual target, Foreign exchange –260 Technical result 487 335 152 despite large losses in Q1 Non-technical resu

159. Slide 159: New business profitability

     6 Additional information: Reinsurance Life New business profitability RORAC spread1 % IRR spread1 % Payback period2 years 20% 20% 20 15% 15% 15 10% 10% 10 5% 5% 5 0% 0% 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Very good new business profitability relative to New b

160. Slide 160: Financial calendar

     Shareholder information Financial calendar 2017 26 April Annual General Meeting 2017, ICM – International Congress Centre Munich 9 May Quarterly statement as at 31 March 20171 9 August Half-year financial report as at 30 June 2017 9 November Quarterly statement as at 30 September 20171 2018 6 Februa

161. Slide 161: For information, please contact

     Shareholder information For information, please contact Investor Relations Team Christian Becker-Hussong Britta Hamberger Angelika Rings Head of Investor & Rating Agency Relations Tel.: +49 (89) 3891-3504 Tel.: +49 (211) 4937-7483 Tel.: +49 (89) 3891-3910 E-mail: bhamberger@munichre.com E-mail: ange

162. Slide 162: 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

Munich Re — Investor Day (March 2017) on 6ix