Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München — Q3 2023 Earnings Presentation
43 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Nov 8, 2023
Slide 1: Quarterly Statement as at 30 September 2023
Munich Re Group Quarterly Statement as at 30 September 2023 8 November 2023 Christoph Jurecka (CFO)
Slide 2: Agenda
Quarterly Statement as at 30 September 2023 Agenda 01 02 03 04 05 Additional Munich Re ERGO Reinsurance Outlook information Quarterly Statement as at 30 September 2023 8 November 2023 2
Slide 3: Munich Re
01 Munich Re Source: Munich Re
Slide 4: Consistently strong operating performance across all segments
Munich Re – Financial highlights Consistently strong operating performance across all segments Net result Total technical result Net financial result Operating result €m €m €m €m 6,189 6,165 5,117 5,457 4,168 783 3,593 2,221 440 1,729 1,776 1,343 1,1691,102 75 61 Q3 Q3 9M 9M Q3 Q3 9M 9M Q3 Q3 9M 9M
Slide 5: Capital position
Munich Re – Capitalisation Capital position Equity Capitalisation €m €bn Equity 31.12.2022 27,245 Change in Q3 10.0% 9.9% 9.7% 9.9% Net result 3,593 1,168 Changes 0.3 0.3 0.3 0.3 Dividend –1,583 0 4.7 4.8 4.7 4.8 Senior debt Share buy-backs –955 –459 Subordinated debt 18.0 18.0 18.6 18.3 Unrealised
Slide 6: Investments
Munich Re – Investments Investments Investment portfolio1 % Government/semi-government bonds2 33 (34) Alternative investments 16 (15) Covered bonds/mortgage loans 14 (15) Equities3 4 (4) Total Corporate bonds 14 (14) Business-related participations 4 (4) €225bn Emerging market government bonds 4 (4)
Slide 7: Investment result
Munich Re – Investments Investment result €m Q3 2023 Return1 9M 2023 Return1 9M 2022 Return1 Regular income 1,797 3.3% 5,162 3.2% 4,718 2.7% Write-ups/write-downs –26 0.0% –64 0.0% –2,638 –1.5% Change in expected credit loss (ECL) –69 –0.1% –95 –0.1% 0 0.0% Disposal gains/losses –196 –0.4% –425 –0.3
Slide 8: Net financial result
Munich Re – Investments Net financial result €m Q3 Q3 9M 9M ▪ Investment result in Q3 2023 affected 2023 2022 2023 2022 by negative fair value changes of Investment result 760 691 2,969 1,266 equities and fixed income (the latter at ERGO L/H Germany) as well as by Currency result 309 568 208 1,423 c
Slide 9: ERGO
02 ERGO Source: Munich Re
Slide 10: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Key ▪ Good total technical result in Q3, Total technical result messages supported by a high contribution from €m Q3 driven by: health and travel business 819 ▪ CSM release in line with ▪ Net result in Q3 of €52m mainly due to life 738 expectations back book and hea
Slide 11: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Total technical result €m ▪ 2.2% release of CSM in Q3 in Q3 9M 2023 2023 line with current expectation of ~2% per quarter Release of CSM 226 675 ▪ Insurance service result from PAA business driven by short- Release of risk adjustment (non-PAA) 9 26 term health insur
Slide 12: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany CSM/RA €m CSM1 RA1 CSM/RA CSM 10,448 580 31.12.2022 ▪ New contracts added in life new New contracts book and long-term health – run-off added 115 6 of life back book and strategic shift in health to short-term business Accretion result in relatively low new contract
Slide 13: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Key ▪ Solid total technical result, despite higher- Total technical result messages than-expected nat cat losses in Q3 €m ▪ Good operating performance with ▪ Net result in Q3 at €31m mainly impacted total technical result in Q3 in line by low investment result inc
Slide 14: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Insurance revenue (gross) in 9M 2023 (9M 2022) Combined ratio €m % Loss ratio Expense ratio 2022 90.3 61.2 29.1 Total Q3 2023 88.2 64.1 24.1 € 3,346 m (€3,137m) 9M 2023 85.8 60.5 25.3 Fire/property 812 Legal protection 371 106.3 To be disclosed 81.2 88.1 88.2 77.5
Slide 15: ERGO International
ERGO ERGO International Key ▪ Total technical result in Q3 supported by Total technical result messages insurance revenue growth, favourable €m ▪ Strong CR in Q3 of 87.9% (114.8%): claims development and CSM release ▪ Favourable development of 470 within expectations basic loss and expense ratio 259
Slide 16: ERGO International
ERGO ERGO International Property- Combined ratio 128.0 casualty1 % 114.8 To be 93.3 disclosed 95.4 88.7 with the 2023 88.1 87.9 90.3 88.3 91.2 88.0 87.2 90.9 89.3 full-year release Q1 Q2 Q3 Q4 Q1 Q2 Q3 9M Poland Legal Greece Baltics Austria Thailand Spain 2022 2022 2022 2022 2023 2023 2023 2023 prot
Slide 17: Reinsurance
03 Reinsurance Source: Munich Re
Slide 18: Life and health reinsurance
Reinsurance Life and health reinsurance Key ▪ Strong total technical result in Q3 above Total technical result messages pro-rata guidance, full-year guidance €m already exceeded after 9 months ▪ Release of CSM and RA in line 1,084 with expectations ▪ Pleasing new business development, 932 ▪ Positive
Slide 19: Life and health reinsurance
Reinsurance Life and health reinsurance Total technical result €m Q3 9M ▪ Release of CSM in line with expectation 2023 2023 of ~2% per quarter Release of CSM 215 638 ▪ Release of risk adjustment also in line with expectation Release of risk adjustment (non-PAA) 62 186 ▪ Experience adjustments reflec
Slide 20: Life and health reinsurance
Reinsurance Life and health reinsurance CSM/RA €m CSM1 RA1 CSM/RA CSM 10,980 2,907 31.12.2022 ▪ Profitable new business growth – New contracts especially in North America – reflected added 669 128 by new contacts added and partly also by operating changes, exceeding the Accretion release through P&L
Slide 21: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Key ▪ Revenue growth of 3.6% vs. 9M 2022 despite Total technical result FX headwinds €m messages ▪ Q3 2023 combined ratio lower ▪ Good combined ratio of 82.0% in Q3 supported 3,852 than Q3 2022, which had been by lower-than-expected major losses 3,350 impact
Slide 22: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Combined ratio % Q3 9M Ø Annual Basic losses Major losses Expenses 2023 2023 expectation 2022 83.2 52.5 15.4 15.3 Change in loss component –1.1 –1.1 ~ 0.0 Q3 2023 82.0 55.3 11.7 15.0 Major losses1 11.7 12.5 ~ 14.0 9M 2023 83.0 55.9 12.5 14.6 Nat cat1 8.1 9.6
Slide 23: Outlook
04 Outlook Source: Munich Re
Slide 24: Outlook 2023
Munich Re Outlook 2023 Group Insurance revenue (gross) Net result Return on investment ~ €58bn ~ €4.5bn > 2.2% (prev. ~ €4.0bn) Combined ratio Insurance revenue (gross) Net result P-C Germany International ERGO ~ €20bn ~ €0.7bn ~ 89% ~ 90% (prev. ~ €19bn) Combined ratio Total technical result Insura
Slide 25: Additional information
05 Additional information Source: Munich Re
Slide 26: Actual vs. analysts' consensus
Additional information Actual vs. analysts’ consensus Operating result – Actual vs. analysts’ consensus1 KPIs – Actual vs. analysts’ consensus1 €m €m Q3 2023 Consensus Delta Q3 2023 Consensus Impact2 Life and health reinsurance 495 367 128 Total technical result 440 307 133 Property-casualty reinsur
Slide 27: Segment income statement Q3 2023
Additional information Segment income statement Q3 2023 €m Life and health Property-casualty ERGO ERGO ERGO Total reinsurance reinsurance L/H Germany P-C Germany International Q3 2023 Gross premiums written1 3,274 9,927 2,513 892 1,461 18,068 Insurance revenue from insurance contracts issued 2,610 6
Slide 28: Segment income statement 9M 2023
Additional information Segment income statement 9M 2023 €m Life and health Property-casualty ERGO ERGO ERGO Total reinsurance reinsurance L/H Germany P-C Germany International 9M 2023 Gross premiums written1 9,842 27,449 7,834 3,558 4,413 53,097 Insurance revenue from insurance contracts issued 7,95
Slide 29: Revenue development
Additional information Revenue development 9M 2023 Insurance revenue (gross) Segmental breakdown €m €bn Revenue Share 9M 2022 41,676 Life and health reinsurance 8.0 19% Property-casualty reinsurance 20.0 47% Total ERGO Life and Health Germany 7.4 17% €42.9bn Foreign –852 ERGO Property-casualty Germa
Slide 30: Insurance revenue (gross) – ERGO International
Additional information Insurance revenue (gross) – ERGO International 9M 2023 Property-casualty Life and health 9M 9M Life 2023 2023 Austria 111 Poland 1,400 Belgium 94 Legal protection 465 Other 136 Baltic states 191 Insurance Insurance Total 341 revenue (gross) revenue (gross) Greece 187 € 2,575m
Slide 31: Total comprehensive income
Additional information Total comprehensive income Q3 2023 €m Reinsurance ERGO ERGO ERGO Munich Re Total L/H Germany P-C Germany International Q3 2023 Total comprehensive income 496 78 64 22 660 Thereof net result 995 52 31 90 1,169 Thereof change in OCI (after tax) –499 26 34 –69 –508 Thereof from i
Slide 32: CSM and risk adjustment by segment
Additional information CSM and risk adjustment by segment 9M 2023 €m CSM vs. Risk adjustment vs. 31.12.2022 (%) 31.12.2022 (%) Life and health reinsurance 10,707 –2.5% 2,894 –0.4% Property-casualty reinsurance 66 – 320 –5.8% ERGO L/H Germany 9,978 –4.5% 519 –10.5% ERGO P-C Germany 388 4.4% 77 16
Slide 33: Loss component by segment
Additional information Loss component by segment 9M 2023 €m Loss vs. component 31.12.2022 (%) Life and health reinsurance 184 –3.0% Property-casualty reinsurance 334 –38.4% ERGO L/H Germany 20 –23.8% ERGO P-C Germany 220 –26.6% ERGO International 283 –11.7% Total 1,040 –24.5% Net of reinsurance. Q
Slide 34: Return on equity
Additional information Return on equity €m Reinsurance ERGO Munich Re Group 30.9. 30.6. 31.12. 30.9. 30.6. 31.12. 30.9. 30.6. 31.12. 2023 2023 2022 2023 2023 2022 2023 2023 2022 Adjusted equity 24,284 23,867 22,743 5,644 5,342 5,524 29,929 29,210 28,267 Q3 2023 average adjusted equity 24,076 5,493 2
Slide 35: Return on investment by asset class and segment
Additional information Return on investment by asset class and segment 9M 2023 %1 Regular Write-ups/-downs Disposal Fair value Other ᴓ Market income change in ECL result change inc./exp. RoI value (€m) Fixed income 3.1 –0.1 –0.6 –0.3 0.0 2.0 172,921 Equities 4.0 0.0 0.0 5.2 0.0 9.2 11,167 Affiliated
Slide 36: Investment result – Reinsurance
Additional information Investment result – Reinsurance Life and health reinsurance €m Q3 2023 Return1 9M 2023 Return1 9M 2022 Return1 Regular income 183 3.5% 530 3.4% 478 2.7% Write-ups/write-downs 7 0.1% 8 0.1% –72 –0.4% Change in expected credit loss (ECL) –1 0.0% 1 0.0% 0 0.0% Disposal gains/loss
Slide 37: Investment result – ERGO
Additional information Investment result – ERGO Life and Health Germany €m Q3 2023 Return1 9M 2023 Return1 9M 2022 Return1 Regular income 834 3.3% 2,492 3.3% 2,606 3.1% Write-ups/write-downs 0 0.0% 1 0.0% –1,449 –1.7% Change in expected credit loss (ECL) –21 –0.1% –54 –0.1% 0 0.0% Disposal gains/los
Slide 38: Investment result – ERGO International
Additional information Investment result – ERGO International €m Q3 2023 Return1 9M 2023 Return1 9M 2022 Return1 Regular income 85 1.9% 238 1.8% 192 1.4% Write-ups/write-downs 0 0.0% 0 0.0% –41 –0.3% Change in expected credit loss (ECL) 0 0.0% –2 0.0% 0 0.0% Disposal gains/losses 6 0.1% 21 0.2% 21 0
Slide 39: Duration investment portfolio
Additional information Duration investment portfolio 9M 2023 Portfolio duration1 Assets Liabilities Reinsurance 4.3 (4.8) 4.4 (5.0) ERGO 7.3 (7.6) 6.5 (6.9) Munich Re 6.1 (6.5) 5.8 (6.3) DV011,2 €m Assets Liabilities net Reinsurance 32 (34) 24 (27) 8 ERGO 75 (81) 72 (75) 3 Munich Re 107 (114) 96 (10
Slide 40: 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 31.12. own shares in own shares in 30.9. Shares (millions) 2022 9M 2023 9M 2023 2023 (millions) Shares in 137.6 –2.8 – 134.8 140.1 139.4 135.
Slide 41: 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 27 FEBRUARY 25 APRIL 8 AUGUST Annual General Meeting Half-Year Financial Report 2024 as at 30 June 2024 Balance sheet m
Slide 42: 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 43: 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