20 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Nov 8, 2022
Slide 1: Quarterly Statement as at 30 September 2022
Munich Re Group Quarterly Statement as at 30 September 2022 8 November 2022 Christoph Jurecka Quarterly Statement as at 30 September 2022 8 November 2022 1
Slide 2: Agenda
Quarterly Statement as at 30 September 2022 Agenda 01 Munich Re 02 ERGO 03 Reinsurance 04 Outlook Quarterly Statement as at 30 September 2022 8 November 2022 2
Slide 3: Munich Re
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Slide 4: Resilient result despite high major losses – Diversification pays off
Group finance – Financial highlights Q3 2022 Resilient result despite high major losses – Diversification between business segments and result drivers pays off Munich Re Q3 2022 (9M 2022) Technical result Investment result Consolidated result €m €m €m Consolidated result 2,623 5,731 2,061 €527m (€1,
Slide 5: Capital position
Group finance – Capitalisation Capital position Equity Capitalisation €m €bn Change 19.5 Equity 31.12.2021 30,945 in Q3 17.7 16.3 15.1 14.7 Consolidated result 1,903 527 Changes 0.3 0.3 Dividend –1,541 0 0.3 5.0 5.1 Unrealised gains/losses –12,355 –3,273 5.1 0.3 0.3 Exchange rates 2,108 851 4.7 4.9
Slide 6: Investment portfolio
Group finance – Investments Investment portfolio Investment portfolio1 Portfolio management % ▪ Further increase in illiquid assets ▪ Reduction of equity-backing ratio driven by market development and disposals Total ▪ Decrease in duration due to higher interest rates €228bn ▪ Increase in reinvestme
Slide 7: Investment result
Group finance – Investments Investment result €m Q3 2022 Return1 9M 2022 Return1 9M 2021 Return1 Regular income 1,596 2.8% 4,853 2.7% 4,580 2.4% Write-ups/write-downs –914 –1.6% –2,944 –1.6% –416 –0.2% Disposal gains/losses 747 1.3% 2,433 1.3% 2,491 1.3% Derivatives2 –319 –0.6% –881 –0.5% –397 –0.2%
Slide 8: ERGO
ERGO
Slide 9: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Key ▪ Significant growth driven by travel and new life book Technical result messages €m ▪ Q3: Improvement mainly driven ▪ Improved technical result in Q3 and positive FX result by health business, mitigated by ▪ Segment net result additionally driven by a positive
Slide 10: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Key ▪ Premium growth in almost all lines of business, Technical result messages significantly above prior-year period and above €m ▪ Combined ratio (CR) of 90.3% market expectations (94.1%) for 9M 300 ▪ Strong improvement in technical result ▪ CR of 87.2% (95.6%)
Slide 11: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio Gross premiums written in 9M 2022 (9M 2021) % €m ◼ Loss ratio ◼ Expense ratio 2020 92.4 61.9 30.5 2021 92.4 62.6 29.8 Total € 3,384 m Q3 2022 87.2 59.1 28.1 (€3,150m) 9M 2022 90.3 60.8 29.5 Fire/property 670 (614) Legal protection 325 (321) 95.6 97.
Slide 12: ERGO International
ERGO ERGO International Key ▪ Continued premium growth despite Technical result messages divestments €m ▪ Higher-than-expected combined ratio (CR) of 93.6% (92.8%) for 9M, driven by Poland ▪ Improvement in technical result 256 and health business in Spain ▪ Lower investment result 205 ▪ Higher CR of
Slide 13: ERGO International
ERGO ERGO International Combined ratio Gross written premiums in 9M 2022 (9M 2021) % €m 93.8 94.5 93.8 92.5 93.0 92.3 93.1 92.6 2,255 (2,203) 92.2 Property-casualty Total €3,864 m Life 431 (455) (€3,839m) Health 1,179 (1,180) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2020 2021 2021 2021 2021 2022 2022 2022 9M
Slide 14: Reinsurance
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Slide 15: Life and health reinsurance
Reinsurance Life and health reinsurance Key ▪ Strong technical result including fee income of €293m Technical result in Q3 (9M: €552m) €m ▪ Q3/9M: Apart from COVID-19, messages favourable claims experience ▪ Favourable claims experience, positive effects from interest rates and continuing strong fee
Slide 16: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Key ▪ Strong premium growth of 22.1% Technical result €m ▪ Q3: Above-average major losses, messages ▪ Substantial major-loss burden from Hurricane Ian dominated by Hurricane Ian with 1,460 ▪ Expense ratio benefits from lower expenses and €1.6bn premium growt
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 30.9 112.2 112.8 108.2 Q3 2022 108.2 53.6 26.9 27.7 9M 2022 96.9 53.3 15.1 28.6 104.2 98.9 96.4 90.1 91.3 89.7 Major Reserve Normalised losses1 Nat cat1 M
Slide 18: Outlook
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Slide 19: Outlook 2022
Munich Re Outlook 2022 On the way to achieving our Group Ambition 2025 Group Gross premiums written Net result Return on investment ~ €67bn ~ €3.3bn >2.0% (prev. ~ €64bn) Combined ratio ERGO Gross premiums written Net result P-C Germany International ~ €19bn ~ €0.8bn ~ 91% ~ 94% (prev. ~ €18.5bn) (p
Slide 20: 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