Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Q1 2022 Earnings Presentation
37 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 10, 2022
Slide 1: Quarterly statement as at 31 March 2022
Munich Re Group Quarterly statement as at 31 March 2022 10 May 2022 Christoph Jurecka Quarterly statement as at 31 March 2022 10 May 2022 1
Slide 2: Agenda
Quarterly statement as at 31 March 2022 Agenda 01 Munich Re 02 ERGO 03 Reinsurance 04 Outlook 05 Additional information Quarterly statement as at 31 March 2022 10 May 2022 2
Slide 3: Munich Re
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Slide 4: Resilient result given the challenging geopolitical and macroeconomic environment
Munich Re – Financial highlights Q1 2022 Resilient result given the challenging geopolitical and macroeconomic environment Munich Re Q1 2022 (Q1 2021) Consolidated result Technical result Investment result Consolidated result €m €m €m €608m (€589m) Reinsurance (€511m): Below-average major 1,691 loss
Slide 5: Capital position
Munich Re – Capitalisation Capital position Equity Capitalisation €m €bn 16.3 Equity 31.12.2021 30,945 15.1 14.7 13.2 Consolidated result 608 12.0 Changes 0.3 0.3 0.3 Dividend 0 0.3 0.3 3.8 5.0 5.1 Unrealised gains/losses –4,425 3.7 5.1 Exchange rates 437 Share buy-backs 0 Other 218 Equity 31.3.2022
Slide 6: Investment portfolio
Munich Re – Investments Investment portfolio Investment portfolio1 Portfolio management % ▪ Further expansion of illiquid investments Fixed-interest securities 54.1 (54.3) ▪ Slight reduction of equity investments Loans 21.9 (22.8) ▪ In response to the sharp increase in bond yields: Total lower marke
Slide 7: Investment result
Munich Re – Investments Investment result €m Q1 2022 Return1 Q1 2021 Return1 Regular income 1,458 2.3% 1,429 2.3% Write-ups/write-downs –1,122 –1.8% –171 –0.3% Disposal gains/losses 960 1.5% 983 1.6% Derivatives2 –116 –0.2% –368 –0.6% Other income/expenses –192 –0.3% –182 –0.3% Investment result 987
Slide 8: ERGO
ERGO
Slide 9: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Key ▪ Lower technical result due to normalisation of Technical result messages operating performance €m ▪ Decrease driven by normalisation of claims development in health ▪ Comparatively low investment result (esp. Life) 116 and travel (due to increased travel ▪ Hig
Slide 10: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Key ▪ Strong growth above market estimate Technical result messages ▪ Technical result significantly impacted by major €m Combined ratio of 97.4% (94.2%) above guidance level driven by: losses … 51 ▪ Significantly higher than expected ▪ … partly compensated for by
Slide 11: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio Gross premiums written in Q1 2022 (Q1 2021) % €m ◼ Loss ratio ◼ Expense ratio 2020 92.4 61.9 30.5 2021 92.4 62.6 29.8 Total Q1 2021 94.2 € 1,679 m 63.0 31.2 (€1,535m) Q1 2022 97.4 65.8 31.6 Motor 398 (383) Legal protection 128 (124) 95.6 97.4 93.4 9
Slide 12: ERGO International
ERGO ERGO International Key ▪ Good portfolio growth despite divestments Technical result messages €m ▪ Combined ratio improved to 92.6% ▪ Improved technical result across all lines of (93.8%), supported by: business 91 ▪ Strong operational performance ▪ Lower investment result and higher taxes in Gr
Slide 13: ERGO International
ERGO ERGO International Combined ratio Gross written premiums in Q1 2022 (Q1 2021) % €m 95.2 93.0 93.8 93.1 92.5 92.2 92.3 92.6 Property-casualty 786 (763) Total 90.1 €1,386 m Life 150 (153) (€1,362m) Health 450 (446) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 2021 2021 2021 2021 2022 Q1 2022 P-
Slide 14: Reinsurance
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Slide 15: Life and health reinsurance
Reinsurance Life and health reinsurance Key ▪ Technical result incl. fee income of €20m below pro-rata annual Technical result ambition owing to … €m ▪ COVID-19-related losses of messages €150m, mainly in the US ▪ … prevailing pandemic and a few individual large mortality claims, while fee income co
Slide 16: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Key ▪ Strong premium growth of 25.4% Technical result €m ▪ Below-average major losses – messages ▪ Pleasing technical performance remaining major-loss budget for ▪ Expense ratio benefits from cost reductions and premium growth 866 the rest of the year: ~€3.3
Slide 17: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Combined ratio % ◼ Basic losses ◼ Major losses ◼ Expenses 2020 105.6 53.9 20.8 30.9 2021 99.6 52.2 16.5 30.9 112.2 112.8 106.0 Q1 2021 98.9 54.4 15.5 28.9 104.2 98.9 Q1 2022 91.3 52.7 9.2 29.4 99.9 91.3 96.4 90.1 Major Reserve Normalised losses1 Nat cat1 Man
Slide 18: April renewals
Reinsurance April renewals Total property-casualty book1 Regional allocation of April renewals % % Asia/Pacific/Africa 24 Latin America 11 Total Japan 20 Europe 11 Total €2.7bn North America 13 Worldwide 22 €29bn Nat cat shares of renewable portfolio2 % Nat cat Other perils January renewals 45 Janua
Slide 19: Selective growth in stable market environment
Reinsurance Selective growth in stable market environment April renewals 2022 % 100 –17.7 82.3 +11.3 +14.0 107.6 €m 2,508 –445 2,063 +282 +352 2,697 ▪ Overall, stable rates on good level Change in premium +7.6% ▪ Japan: Several consecutive Thereof price movement1 ~ –0.1% years of rate increase and T
Slide 20: Regional allocation of July renewals
Reinsurance Regional allocation of July renewals Outlook ▪ Regional focus Total on USA, Latin America and Australia €3.9bn ▪ Comparatively high nat cat share of ~ 23% North America 27% Asia/Pacific/Africa 9% Australia/New Zealand 23% Europe 5% Latin America 11% Worldwide 26% Quarterly statement as a
Slide 21: Outlook
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Slide 22: Outlook 2022
Outlook 2022 Group Gross premiums written Consolidated result Return on investment ~ €64bn ~ €3.3bn >2.5% (prev. ~ €61bn) Combined ratio ERGO Gross premiums written Consolidated result P-C Germany International ~ €18.5bn ~ €0.6bn1 ~ 91% ~ 92% Combined ratio Technical result, incl. fee Reinsurance Gr
Slide 23: Additional information
Additional information
Slide 24: Segment income statement Q1 2022
Additional information: Group finance and risk Segment income statement Q1 2022 €m L&H1 P-C ERGO ERGO ERGO Total reinsurance reinsurance L&H Germany P-C Germany International Q1 2022 Gross premiums written 3,369 7,938 2,461 1,679 1,386 16,833 Net earned premiums 3,001 7,279 2,385 930 1,192 14,787 In
Slide 25: Actual vs. analysts' consensus
Additional information: Group finance and risk Actual vs. analysts’ consensus Operating result – Actual vs. analysts’ consensus1 KPIs – Actual vs. analysts’ consensus1 €m €m Q1 2022 Consensus Delta Q1 2022 Consensus Impact2 Property-casualty reinsurance 699 609 90 Combined ratio 91.3% 95.9% 335 Life
Slide 26: Premium development
Additional information: Group finance and risk Premium development Gross premiums written Segmental breakdown €m €m Q1 2021 14,551 Foreign Total 507 exchange €16.8bn Divestments/ –41 investments Property-casualty reinsurance 7,938 (47%) (p 25.4%) Organic change 1,816 Life and health reinsurance 3,36
Slide 27: Return on investment by asset class and segment
Additional information: Group finance and risk – Investments Return on investment by asset class and segment Q1 2022 %1 Regular Write-ups/ Disposal Extraord. Other ᴓ Market income -downs result derivatives result inc./exp. RoI value (€m) Afs fixed-income 1.8 –2.1 0.7 0.0 0.0 0.4 134,618 Afs non-fixe
Slide 28: Investment result – Reinsurance
Additional information: Investments Investment result – Reinsurance Life and health reinsurance €m Q1 2022 Return1 Q1 2021 Return1 Regular income 181 2.4% 169 2.3% Write-ups/write-downs –57 –0.8% –2 0.0% Disposal gains/losses 29 0.4% 94 1.3% Derivatives2 –11 –0.2% 1 0.0% Other income/expenses –19 –0
Slide 29: Investment result – ERGO
Additional information: Investments Investment result – ERGO Life and Health Germany €m Q1 2022 Return1 Q1 2021 Return1 Regular income 771 2.6% 785 2.5% Write-ups/write-downs –490 –1.6% –73 –0.2% Disposal gains/losses 409 1.4% 565 1.8% Derivatives2 54 0.2% –289 –0.9% Other income/expenses –98 –0.3%
Slide 30: Investment result – ERGO
Additional information: Investments Investment result – ERGO International €m Q1 2022 Return1 Q1 2021 Return1 Regular income 59 1.2% 72 1.4% Write-ups/write-downs –6 –0.1% 11 0.2% Disposal gains/losses 39 0.8% 39 0.8% Derivatives2 –10 –0.2% –22 –0.4% Other income/expenses –4 –0.1% –5 –0.1% Investmen
Slide 31: Sensitivities to interest rates, spreads and equities
Additional information: 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 +8.3 +4.1 –7.6 –14.4 Change in on-balance-sheet reserves, net +2.3 +1.1 –2.1 –4.1 Ch
Slide 32: On- and off-balance-sheet reserves
Additional information: Investments On- and off-balance-sheet reserves €m 31.12. 31.12. 31.12. 31.3. p 2019 2020 2021 2022 in Q1 Market value of investments 247,310 252,789 257,485 245,860 –11,625 Total reserves 33,120 37,269 30,357 16,209 –14,148 On-balance-sheet reserves Fixed-interest securities
Slide 33: On- and off-balance-sheet reserves
Additional information: Investments On- and off-balance-sheet reserves €m On-balance-sheet reserves Off-balance-sheet reserves1 31.3.2022 31.12.2021 31.3.2022 31.12.2021 Total reserves (gross) 3,657 13,172 12,552 17,185 Provision for deferred premium refunds –1,641 –5,409 –4,704 –8,115 Deferred tax
Slide 34: 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 31.3. Shares (millions) 2021 Q1 2022 Q1 2022 2022 (millions) Shares in 140.1 – – 140.1 143.6 140.3 140.1 1
Slide 35: Financial calendar
Financial calendar 2022 Annual Report (Group), Annual Report (Company) Quarterly Statement Quarterly Statement as at 31 March 2022 as at 30 September 2022 17 MARCH 10 MAY 8 NOVEMBER 23 FEBRUARY 28 APRIL 9 AUGUST Annual General Meeting Half-Year Financial Report 2022 as at 30 June 2022 Balance sheet
Slide 36: 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 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