Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Rendez-Vous de Septembre 2006
12 slides from Munchener Ruckversicherungs-gesellschaft's conference presentation, Sep 10, 2006
Slide 1: Munich Re press conference at the Rendez-Vous de Septembre in Monte Carlo 2006
Munich Re press conference at the Rendez-Vous de Septembre in Monte Carlo 2006 Reinsurance in the run-up to the 2006/07 renewals Nikolaus von Bomhard 10 September 2006
Slide 2: 2006 renewals
Reinsurance in the run-up to the 2006/07 renewals 2006 renewals Renewal 1 January 2006 Munich Re's overall Regions: worldwide (primarily Europe and the USA) property/casualty business was Renewal 1 April 2006 up for renewal as follows: Regions: mainly Japan, Korea, India and the USA Renewal 1 Ju
Slide 3: Outlook for the main renewal at 1 January 2007
Reinsurance in the run-up to the 2006/07 renewals Outlook for the main renewal at 1 January 2007 Sustained price levels for NatCat business Largely risk-adequate reinsurance prices and conditions also in areas not exposed to NatCat losses Very tight retrocession and cat bond market, particular
Slide 4: Main challenges
Reinsurance in the run-up to the 2006/07 renewals Main challenges 1 2 3 Natural catastrophes Personal injury Terrorism Æ Frequency and severity Æ Hyperinflation in the last Æ Political and social of events 15 years dimension Æ Concentration of Reasons for this inflation: Æ Underwriting has only insu
Slide 5: Munich Re meets the challenges: Natural catastrophes
Reinsurance in the run-up to the 2006/07 renewals Munich Re meets the challenges Æ Natural catastrophes Measures taken after the hurricanes in 2005: Adjustment of prices in time for the renewal at 1 January 2006 Adjustment of models Reduction of proportional liabilities by means of cession lim
Slide 6: Munich Re meets the challenges: Personal injury, taking France as an example
Reinsurance in the run-up to the 2006/07 renewals Munich Re meets the challenges Æ Personal injury, taking France as an example Treaty measures Loss commutation by the reinsurer after a period that is limited and thus easier to plan (run-off clause) Price adjustments New cover concepts change
Slide 7: Munich Re meets the challenges: Terrorism
Reinsurance in the run-up to the 2006/07 renewals Munich Re meets the challenges Æ Terrorism Attack on WTC five years ago Æ new form of terrorism Munich Re considers terrorism insurable on a very limited basis only Claims frequency is very difficult to prognosticate Political and social deve
Slide 8: Munich Re meets the challenges: Terrorism underwriting policy
Reinsurance in the run-up to the 2006/07 renewals Munich Re meets the challenges Æ Terrorism Underwriting policy Exclusion of the risk of terrorism, wherever possible Provision of limited cover, provided the exposure assumed is highly transparent, the liabilities are clearly limited and cont
Slide 9: New requirements for risk management
Reinsurance in the run-up to the 2006/07 renewals New requirements for risk management Integrated risk management required under Solvency II Qualitative risk management requirements in addition to quantitative capital requirements Decisive: overall risk situation and risk management quality
Slide 10: Consequences of Solvency II for reinsurance
Reinsurance in the run-up to the 2006/07 renewals New risk management requirements Æ Consequences of Solvency II for reinsurance Reinsurers' internal risk models take diversification effects into account Æ Lower capital requirements Æ Strong diversification leads to more efficient use of capital
Slide 11: Our proven approach
Reinsurance in the run-up to the 2006/07 renewals Our proven approach Risk-commensurate prices, terms and conditions Æ fair for all concerned Widest possible diversification Æ provides for additional security Great financial strength, expertise, strong client focus Æ basis for long-term client
Slide 12: Disclaimer
Reinsurance in the run-up to the 2006/07 renewals 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 t