Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München — Q1 2020 Earnings Presentation
38 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 7, 2020
Slide 1: Quarterly statement as at 31 March 2020
Quarterly statement as at 31 March 2020 Christoph Jurecka, Group CFO 7 May 2020 Image: Klaus Ohlenschläger / dpa Picture Alliance
Slide 2: Quarterly statement as at 31 March 2020
Quarterly statement as at 31 March 2020 1 Munich Re 2 ERGO 3 Reinsurance 4 Outlook 5 Backup Quarterly statement as at 31 March 2020 7 May 2020 2
Slide 3: Covid-19: Dynamic situation with ongoing high uncertainty
Munich Re – Covid-19 Covid-19: Dynamic situation with ongoing high uncertainty, affecting assets and liabilities of the insurance industry Covid-19 Population Economy Capital markets ▪ Strong increase in ▪ Government lock downs ▪ Slump in equity markets infections and fatalities ▪ Event cancellation
Slide 4: Financial impact on Munich Re manageable
Munich Re – Covid-19 Financial impact on Munich Re manageable Life/Health P-C Investments ▪ No notable impact so far ▪ ~€800m in Covid-19- ▪ Equity impairments and ▪ Higher mortality in the related claims across net disposal losses: P&L impact various lines of business … –€1,669m in Q1 US not relate
Slide 5: Pleasing result given exceptional circumstances
Munich Re – Financial highlights Q1 2020 Pleasing result given exceptional circumstances Munich Re Q1 2020 (Q1 2019) Net result Technical result Investment result Net result €221m (€633m) €m €m €m Reinsurance result of €149m 647 1,920 633 1,757 impacted by Covid-19-related losses in P-C and burden f
Slide 6: Capital position
Munich Re – Capitalisation Capital position Equity €m Capitalisation €bn Equity 31.12.2019 30,576 0.4 0.3 0.3 Consolidated result 221 4.2 0.3 0.3 3.8 Changes 3.9 2.8 3.7 Dividend 0 Unrealised gains/losses –1,121 Exchange rates –105 Share buy-backs –359 12.6 13.2 12.6 Other –96 12.0 10.0 Equity 31.3.
Slide 7: Investment portfolio
Munich Re – Investments Investment portfolio Investment portfolio1 % Portfolio management in Q1 Land and buildings Fixed-interest securities ▪ Expansion of corporates and emerging market 5.0 (4.7) 54.2 (53.9) bonds as well as investments in government bonds with longer maturities stabilise TOTAL rei
Slide 8: Investment result
Munich Re – Investments Investment result €m Q1 2020 Return1 Q1 2019 Return1 Regular income 1,544 2.5% 1,611 2.7% Write-ups/write-downs –1,459 –2.4% –83 –0.1% Disposal gains/losses 377 0.6% 602 1.0% Derivatives2 1,600 2.6% –231 –0.4% Other income/expenses –142 –0.2% –142 –0.2% Investment result 1,92
Slide 9: ERGO
ERGO 2 Image: dem10 / iStockphoto Getty Images
Slide 10: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Gross premiums written €m Major result drivers €m Q1 2019 2,346 Q1 2020 Q1 2019 Technical result 83 78 5 Foreign exchange 0 Non-technical result –95 31 –126 Divestments/investments 0 thereof investment result 839 992 –153 Organic change –31 Other 17 –46 63 Q1 2020
Slide 11: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Gross premiums written €m Major result drivers €m Q1 2019 1,349 Q1 2020 Q1 2019 Technical result 59 23 37 Foreign exchange 2 Non-technical result –4 –14 10 Divestments/investments 0 thereof investment result 51 45 7 Organic change 88 Other –34 5 –40 Q1 2020 1,43
Slide 12: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio % Gross premiums written in Q1 2020 (Q1 2019) €m ◼ Loss ratio ◼ Expense ratio Other Motor 130 (106) 373 (353) 2018 96.0 62.5 33.4 2019 92.3 60.3 32.0 Q1 Marine 2020 93.4 61.0 32.4 52 (49) TOTAL Fire/property €1,439m 307 (281) (€1,349m) 97.9 98.1 90.
Slide 13: ERGO International
ERGO ERGO International Gross premiums written €m Major result drivers €m Q1 2019 1,300 Q1 2020 Q1 2019 Technical result 36 44 –7 Foreign exchange –2 Non-technical result 19 –24 43 Divestments/investments –49 thereof investment result 100 79 21 Organic change 45 Other –9 –12 3 Q1 2020 1,295 Net re
Slide 14: ERGO International
ERGO ERGO International Combined ratio % Gross premiums written in Q1 2020 (Q1 2019) €m Property-casualty Life 95.6 94.5 95.4 95.0 94.8 95.2 702 (730) 170 (170) 93.3 91.8 TOTAL €1,295m (€1,300m) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Health 2018 2018 2018 2019 2019 2019 2019 2020 423 (400) 2020 P-C Q1 Q1 Life Q1 Q
Slide 15: Reinsurance
Reinsurance 3 Image: John Lund Getty Images
Slide 16: Reinsurance Life and Health
Reinsurance Reinsurance Life and Health Gross premiums written €m Major result drivers €m Q1 2019 2,896 Q1 2020 Q1 2019 Technical result 14 85 –71 Foreign exchange 67 Non-technical result 52 104 –52 Divestments/investments 0 thereof investment result 226 243 –17 Organic change 117 Other –58 –9 –50
Slide 17: Reinsurance Property-casualty
Reinsurance Reinsurance Property-casualty Gross premiums written €m Major result drivers €m Q1 2019 5,484 Q1 2020 Q1 2019 Technical result –74 418 –492 Foreign exchange 113 Non-technical result 306 26 280 Divestments/investments 0 thereof investment result 703 398 306 Organic change 559 Other –91
Slide 18: Reinsurance Property-casualty – Combined ratio
Reinsurance Reinsurance Property-casualty – Combined ratio % ◼ Basic losses ◼ Major losses ◼ Expense ratio 2018 99.4 53.6 11.6 34.2 111.6 105.1 2019 100.2 51.4 15.2 33.6 102.0 106.0 97.3 103.9 Q1 2020 106.0 54.7 21.1 30.1 100.7 86.9 Major Reserve Normalised losses Nat cat Man-made releases1 combined
Slide 19: April renewals
Reinsurance – April renewals 2020 April renewals Total property-casualty book1 % Regional allocation of April renewals % Remaining business Business up for renewal in January Worldwide Asia/Pacific/Africa 30 46 22 46 North America TOTAL 13 €1.7bn South America Europe 14 15 TOTAL €20bn Nat cat shares
Slide 20: Munich Re substantially expands premium volume, further improving portfolio profitability
Reinsurance – April renewals 2020 Munich Re substantially expands premium volume, further improving portfolio profitability April renewals 2020 % 100 –10.8 89.2 +13.7 +22.8 125.7 ▪ Positive pricing dynamics €m 1,668 –181 1,488 +229 +381 2,098 continue – particularly in regions and lines of Change in
Slide 21: Regional allocation of July renewals
Reinsurance – July renewals Regional allocation of July renewals Regional focus on North North America Worldwide and Latin America, main 30% 21% renewal date in Australia TOTAL Asia, Pacific Latin America 11% €3.2bn and Africa 9% Relatively high Australia Europe nat cat share of ~20% 22% 7% Quarterl
Slide 22: Outlook
Outlook 4 Image: Klaus Ohlenschläger / dpa Picture Alliance
Slide 23: Outlook 2020
Outlook 2020 Group Gross premiums written Net result Return on investment1 ~€52bn withdrawn ~3% ERGO Combined ratio Gross premiums written1 Net result1 P-C Germany1 International1 ~€17.5bn ~€530m ~92% ~94% Reinsurance Combined ratio Technical result, incl. fee income Gross premiums written Net resul
Slide 24: Backup
Backup 5 Image: imaginima / Getty Images
Slide 25: Segment income statement Q1 2020
Backup: Group finance and risk Segment income statement Q1 2020 €m Reinsurance Reinsurance ERGO ERGO ERGO Total L/H1 P-C L/H Germany P-C Germany International Q1 2020 Gross premiums written 3,079 6,156 2,315 1,439 1,295 14,284 Net earned premiums 2,777 5,587 2,275 866 1,141 12,646 Income from techni
Slide 26: Actual vs. analysts' consensus
Backup: Group finance and risk Actual vs. analysts’ consensus Operating result – Actual vs. analysts’ consensus1 €m KPIs – Actual vs. analysts’ consensus1 €m Q1 2020 Consensus Delta Q1 2020 Consensus Impact2 Reinsurance Property-casualty 232 33 199 Combined ratio 106.0% 105.6% –20 Reinsurance Life a
Slide 27: Premium development
Backup: Group finance and risk Premium development Gross premiums written €m Segmental breakdown €m Reinsurance ERGO Property-casualty Life and Health Germany Q1 2019 13,375 6,156 (43%) ( 12.2%) 2,315 (16%) ( –1.3%) Foreign exchange 179 ERGO TOTAL Property-casualty Germany Divestments/ investments
Slide 28: Return on investment by asset class and segment
Backup: Group finance and risk – Investments Return on investment by asset class and segment Q1 2020 Regular Write-ups/ Disposal Extraord. Other ᴓ Market %1 income -downs result derivatives result inc./exp. RoI value (€m) Afs fixed-income 2.1 0.0 1.3 0.0 0.0 3.3 132,241 Afs non-fixed-income 3.2 –31.
Slide 29: Investment result – Reinsurance
Backup: Investments Investment result – Reinsurance Reinsurance Life and Health (€m) Q1 2020 Return1 Q1 2019 Return1 Regular income 196 2.7% 187 2.7% Write-ups/write-downs –18 –0.2% –1 0.0% Disposal gains/losses 25 0.3% 67 1.0% Derivatives2 33 0.5% –5 –0.1% Other income/expenses –10 –0.1% –4 –0.1% I
Slide 30: Investment result – ERGO
Backup: Investments Investment result – ERGO Life and Health Germany (€m) Q1 2020 Return1 Q1 2019 Return1 Regular income 822 2.6% 855 2.8% Write-ups/write-downs –1,150 –3.7% –41 –0.1% Disposal gains/losses 180 0.6% 409 1.3% Derivatives2 1,046 3.3% –165 –0.5% Other income/expenses –59 –0.2% –66 –0.2%
Slide 31: Investment result – ERGO
Backup: Investments Investment result – ERGO International (€m) Q1 2020 Return1 Q1 2019 Return1 Regular income 85 1.8% 91 2.1% Write-ups/write-downs –44 –0.9% 22 0.5% Disposal gains/losses 11 0.2% 0 0.0% Derivatives2 54 1.2% –27 –0.6% Other income/expenses –6 –0.1% –7 –0.1% Investment result 100 2.2
Slide 32: Sensitivities to interest rates, spreads and equities
Backup: Group finance and risk – Investments Sensitivities to interest rates, spreads and equities1 Sensitivity to risk-free interest in €bn (change in basis points) –50bps –25bps +50bps +100bps Change in market value, gross +9.6 +4.7 –8.7 –16.5 Change in on-balance-sheet reserves, net +2.4 +1.2 –2.
Slide 33: On- and off-balance-sheet reserves
Backup: Group finance and risk – Investments On- and off-balance-sheet reserves €m 31.12. 31.12. 31.12. 31.3. 2017 2018 2019 2020 in Q1 Market value of investments 231,885 231,876 247,310 247,196 –115 Total reserves 25,395 22,002 33,120 31,117 –2,003 On-balance-sheet reserves Fixed-interest securi
Slide 34: On- and off-balance-sheet reserves
Backup: Group finance and risk – Investments On- and off-balance-sheet reserves €m On-balance-sheet reserves Off-balance-sheet reserves1 Total reserves (gross) 11,870 19,246 Provision for deferred premium refunds –4,785 –11,455 Deferred tax –1,631 –2,361 Minority interests –3 0 Consolidation and cur
Slide 35: 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) 2019 Q1 2020 Q1 2020 2020 (millions) Shares in 154.1 141.5 –1.4 – 140.1 148.7 143.6 140.8 circulat
Slide 36: Financial calendar
Backup: Shareholder information Financial calendar 2020 6 August Half-year financial report as at 30 June 2020 5 November Quarterly statement as at 30 September 2020 8 December Investor Day, Munich Quarterly statement as at 31 March 2020 7 May 2020 36
Slide 37: For information, please contact
Backup: 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 Email: tdzuba@munichre.com Email:
Slide 38: 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