Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — CA Cheuvreux – 9th German Corporate Conference (January 2010)
24 slides from Munchener Ruckversicherungs-gesellschaft's conference presentation, Jan 20, 2010
Slide 1: Continuing Reliable Earnings Generation
CONTINUING RELIABLE EARNINGS GENERATION CA Cheuvreux – 9th German Corporate Conference Frankfurt, 20 January 2010 Hermann Pohlchristoph (CFO Reinsurance) CA Cheuvreux – 9th German Corporate Conference 1
Slide 2: Agenda
Agenda Sustainable value creation 2 Solvency II – The next revolution in insurance 7 Integrated business model 12 Summary and outlook 19 CA Cheuvreux – 9th German Corporate Conference 2
Slide 3: Munich Re committed to sustainable value generation
Sustainable value creation – Return on equity Munich Re committed to sustainable value generation Return on equity and volatility Return on equity (5yr average) 20 ZFS Odyssey Re 16 Generali Partner Re 12 Munich Re Swiss Re Hannover Re Allianz Scor AXA 8 Everest Re 4 0 0 4 8 12 16 Volatility of retu
Slide 4: Clear-cut liability-driven business model leads to low cost of capital
Sustainable value creation – Return on equity vs. cost of capital Clear-cut liability-driven business model leads to low cost of capital Return on equity vs. cost of capital % Cost of capital1 Return on equity2 15.3 14.1 Average 12.5 Return on equity 10.5 11.0 11.5% 9.5 9.8 9.3 8.0 7.8 Cost of capit
Slide 5: Continued good results trend
Sustainable value creation – Financial highlights Q1–3 2009 Continued good results trend Munich Re (Group) Net profit of €1,789m Shareholders’ equity Maintaining low-risk in Q1–3 2009 (RoRaC 14%)1 increased to €22.8bn investment profile Resilient underwriting and good Capital strength allows consist
Slide 6: Strong operating performance
Sustainable value creation – Financial highlights Q1–3 2009 Strong operating performance GROUP REINSURANCE PRIMARY INSURANCE Gross premiums written Combined ratio property-casualty Combined ratio property-casualty €m % % Q1–3 Q1–3 Q1–3 28,123 100.1 90.0 2008 2008 2008 Q1–3 Q1–3 Q1–3 31,048 96.3 94.2
Slide 7: Agenda
Agenda Sustainable value creation Solvency II – The next revolution in insurance Integrated business model Summary and outlook CA Cheuvreux – 9th German Corporate Conference 7
Slide 8: Solvency II motivates the insurance industry to fully adopt stringent risk-based economic steering
Solvency II – The next revolution in insurance – Basic concept of Solvency II Solvency II motivates the insurance industry to fully adopt stringent risk-based economic steering 3 pillars of Solvency II Changes compared to Solvency I Principle-based (in contrast to 1 Quantitative 2 Qualitative 3 Tran
Slide 9: Solvency II brings more discipline to the insurance industry
Solvency II – The next revolution in insurance – Potential impact on the insurance industry Solvency II brings more discipline to the insurance industry Solvency II acts as a catalyst … … to resolve some old industry issues Example: Primary life insurance Issue: Long-term guarantees and options ofte
Slide 10: Well-diversified reinsurers will benefit from Solvency II
Solvency II – The next revolution in insurance – Solvency II rewarding diversification Well-diversified reinsurers will benefit from Solvency II, and cedants can improve their risk-adjusted return Illustrative Primary insurer’s portfolio Reinsurer’s portfolio Risk capital Risk capital Additional ris
Slide 11: Strong capital base provides a clear competitive edge
Solvency II – The next revolution in insurance – Rating impact of Solvency II Strong capital base provides a clear competitive edge – Reinsurers’ rating the decisive factor Deduction on capital relief for the counterparty default risk1 Impact of rating vs. number of reinsurers 60% 55% Explicit consi
Slide 12: Agenda
Agenda Sustainable value creation Solvency II – The next revolution in insurance Integrated business model Summary and outlook CA Cheuvreux – 9th German Corporate Conference 12
Slide 13: Covering the full value chain of insurance
Integrated business model Covering the full value chain of insurance – Providing the best solution for each risk Munich Re Group RISK MANAGEMENT INVESTMENTS CAPITAL MANAGEMENT Clear-cut comprehensive risk Focus on low-risk profile while Strategic flexibility to efficiently management framework with
Slide 14: ERGO fosters profitable growth with new brand strategy
Integrated business model – Primary insurance – New brand strategy ERGO fosters profitable growth with new brand strategy Align business closer to customer demands ERGO´s response: Strengthen sales power Short-term trigger: After insolvency of Arcandor, Combination of advice-driven distribution rebr
Slide 15: ERGO well positioned throughout all segments
Integrated business model – Primary insurance – Overview of initiatives ERGO well positioned throughout all segments – Cost-reduction initiatives well under way Economic crisis puts pressure on growth and margins Life Implementation of strategic initiatives well under way A market leader in Germany;
Slide 16: Changing reinsurance market environment imposes challenges and opportunities
Integrated business model – Reinsurance – Trends Changing reinsurance market environment imposes challenges and opportunities Market trends Competitor trends Revival of technical Increasing capital strength and underwriting and de-risking of risk management capabilities asset side Differential terms
Slide 17: Munich Re to offer solutions beyond traditional reinsurance
Integrated business model – Reinsurance – Repositioning Munich Re to offer solutions beyond traditional reinsurance New global brand The three cornerstones of Munich Re’s refined positioning A high level of security and (Re)insurance of complex and Tapping into individual solutions new risks new cli
Slide 18: Munich Health – Flexible roll-out of different business models
Integrated business model – International Health – Business model Munich Health – Flexible roll-out of different business models meets regional demand on a global basis Munich Health covering the full value chain Continued positive business development Business Financial protection Provision Despite
Slide 19: Agenda
Agenda Sustainable value creation Solvency II – The next revolution in insurance Integrated business model Summary and outlook CA Cheuvreux – 9th German Corporate Conference 19
Slide 20: Earnings resilience through the crisis
Summary Earnings resilience through the crisis – Well positioned to seize opportunities going forward EuroStoxx 50 since 1 January 2009 Q1 2009 Q2 2009 Q3 2009 31.12.08 30.9.09 2,448 2,873 Prudent risk management ... as improving investment … enabling strong growth Results providing earnings resilie
Slide 21: Clear focus on reliable earnings generation
Outlook Clear focus on reliable earnings generation Outlook 2009 GROSS PREMIUMS WRITTEN CONSOLIDATED RESULT €40–42bn1 €2.2–2.5bn2 COMBINED RATIO COMBINED RATIO Reinsurance approx. 97% Primary insurance <95% RETURN ON INVESTMENTS SHARE BUY-BACK RoI expected to be slightly above 4% Up to €1bn by AGM 2
Slide 22: Financial calendar
Backup: Shareholder information Financial calendar FINANCIAL CALENDAR 2 February 2010 Preliminary figures 2009 and renewals 10 March 2010 Balance sheet press conference for 2009 financial statements 11 March 2010 Analysts’ conference 28 April 2010 Annual General Meeting 29 April 2010 Dividend paymen
Slide 23: 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 E-mail: tdzuba@munichre.com E-mail
Slide 24: Disclaimer
Backup: Shareholder information 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
Munich Re — CA Cheuvreux – 9th German Corporate Conference (January 2010) on 6ix