Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Cheuvreux German Corporate Conference 2012
21 slides from Munchener Ruckversicherungs-gesellschaft's conference presentation, Jan 18, 2012
Slide 1: Creating Value in a Volatile Environment
CREATING VALUE IN A VOLATILE ENVIRONMENT Ch Cheuvreux – German G Corporate C t Conference C f 2012 Frankfurt, 18 January 2012 Christian Becker-Hussong Cheuvreux – German Corporate Conference 2012 1
Slide 2: Munich Re: A leading global (re)insurer with strong presence in German primary insurance
Overview Munich Re: A leading global (re)insurer with strong presence in German primary insurance Premium breakdown by segment and region1 €bn €bn Africa, Near and Middle East Primary insurance Latin America Property-casualty 0.7 (2%) Reinsurance 1.1 (3%) Property-casualty 4.4 (12%) 12.5 (33%) (▲ 2.
Slide 3: 2011 was a year of extremes with historically high nat cat claims and severe capital market disruption
Overview 2011 was as a year of extremes with historically high nat cat claims and severe capital market disruption … 10-year German Bund yield1 Credit spreads1, 2 EuroStoxx 501 –113 bps +145 bps –17% Natural catastrophes3 – economic losses of US$380bn US$380bn, thereof US$105bn insured Severe weathe
Slide 4: Leaving their mark on results, but long-term shareholder return remains sound
Overview … leaving their mark on Munich Re's results, but long-term shareholder return remains sound Achievements in 2011 Risk-/return profile1 % Total shareholder return (p (p.a.) a) Proven successful – Reliable risk 1 management well prepared for 10 Solvency II Peer 3 5 Peer 2 Prudent investment D
Slide 5: Munich Re's enterprise risk management safeguards investors' interests and clients' protection
1 Risk management Munich Re's enterprise risk management (ERM) safeguards investors' interests and clients' protection Components of Munich Re's ERM Objectives Protect P t t andd generate t sustainable t i bl Risk strategy shareholder value Clear limits define the framework for operational action
Slide 6: Well positioned to manage changes and capture opportunities arising from Solvency II
1 Risk management Munich Re well positioned to manage changes and capture opportunities arising from new Solvency II regime Main implications of Solvency II C Convergence off enterprise t i I Impactt on product d t design d i M k t discipline Market di i li risk management standards and pricing stre
Slide 7: Strong risk management focus also reflected in management of investment portfolio
2 Investment Management Strong risk management focus also reflected in the management of our investment portfolio Investment topics Investment strategy Duration D ti management: t K Keeping i Sovereign the asset-liability mismatch tight risk Diversification of government bond portfolio Ri k Risk
Slide 8: High level of portfolio diversification while delivering solid returns
2 Investment Management High level of portfolio diversification while delivering solid returns Investment portfolio1 Return on investment / running yield5 Miscellaneous Mi ll 2 L d and Land db buildings ildi % Running yield RoI 12.0% (9.7%) 2.6% (2.9%) 6 5 Loans 26 7% 26.7% 4 TOTAL (25.7%) €205bn Sh
Slide 9: Sound capital position reflected in low CDS spread
3 Robust capital base Sound capital position reflected in low CDS spread Book value per share CDS spread € 400 CAGR: 8.3% 150.6 iTraxx Senior Financials BV/share (plus dividend/share iTraxx Europe buy-back) BV/share 123.7 Munich Re 300 CAGR: 5.2% 2005 Q1–3 2011 200 Capital quality €bn Senior and oth
Slide 10: Able to withstand another extreme economic stress without breaching critical limits
3 Robust capital base Munich Re able to withstand another extreme economic stress like this year’s without breaching critical limits Munich Re actions1 Munich Re solvency ratio Regulatory actions2 >140% MRCM1 Solvency II2 35% 100% 35%–100% Excellent capitalisation Below target capitalisation Solvenc
Slide 11: Limited impact of economic cycle on core non-life and health business
4 Underlying performance – Integrated business model Limited impact of economic cycle on core non-life and health business – Countervailing effects in life Lower Sensitivity to negative changes in macroeconomic environment Higher Non- Property (esp. fire) Casualty (esp. D&O1, PI2, workers comp.) lif
Slide 12: Non-life reinsurance – Actively managing the cycle while expanding in growth areas
4 Underlying performance – Integrated business model Non-life reinsurance – Actively managing the cycle while expanding in strategic growth areas Renewals 2011 – First evidence of Leveraging expertise in specialty business1 improved prospects €b 11.3 €bn 2008 2009 2010 11.0 10.6 % 100 –15.8 84.2 5.1
Slide 13: Life reinsurance – Stabilising component with growing importance
4 Underlying performance – Integrated business model Life reinsurance – Stabilising component with growing importance within reinsurance segment Global market leader (market share)1 Life smoothing volatile P-C earnings Technical result PC P-C Munich Re 27% Life Swiss Re 18% RGA 13% Hannover Re 12% B
Slide 14: Primary insurance with very strong focus on Germany
4 Underlying performance – Integrated business model Primary insurance with very strong focus on economically sound Germany P-C Germany – Strong performance Life – Difficult market conditions Combined ratio1 Burdening factors M Management t action ti 100% "Lower for longer" Hedging mitigating Ma
Slide 15: Turnaround programmes in international business starting to bear fruit
4 Underlying performance – Integrated business model Turnaround programmes in international business starting to bear fruit Gross premiums written 2010 by region Poland – On track Turkey Rest of World Recovery from nat cat losses 2010 2% 6% Higher premium rates and cost reduction Poland 5% Amo
Slide 16: Munich Health – After consolidation, prepared for further growth
4 Underlying performance – Integrated business model Munich Health – After consolidation, prepared for further growth Health risk service provider – Examples Portfolio management allowing Munich participation p p in future market g growth Health Risk-taking Risk management business models Financial
Slide 17: Solvency II providing additional business opportunities
Outlook Solvency II providing additional business opportunities … Dedicated Munich Re risk appetite ILLUSTRATIVE her Li it d M Limited Munich i hRRe risk i k appetite tit High Asset protection pital relief Bubble size indicates business Nat cat potential based on QIS52 protection Longevity LPT1 cove
Slide 18: Munich Re – Crisis-proven and aligned to sustainable value generation
Key takeaways Munich Re – Crisis-proven and aligned to sustainable value generation Key takeaways Good track record of dealing with challenging economic conditions We remain a strong partner for clients and reliable for shareholders in times of crisis Highly diversified business model Focus on insur
Slide 19: Financial calendar
Appendix Financial calendar FINANCIAL CALENDAR 2 February 2012 Preliminary key figures 2011 and renewals 13 March 2012 Balance sheet press conference for 2011 financial statements 14 March 2012 Analysts' conference, London 26 April 2012 Annual General Meeting, Munich 8 May 2012 Interim report as at
Slide 20: For information, please contact
Appendix For information, please contact INVESTOR RELATIONS TEAM Christian Becker-Hussong Becker Hussong Ralf Kleinschroth Thorsten Dzuba Head of Investor & Rating Agency Relations Tel.: +49 (89) 3891-4559 Tel.: +49 (89) 3891-8030 Tel.: +49 (89) 3891-3910 E-mail: rkleinschroth@munichre.com E-mail: t
Slide 21: Disclaimer
Appendix Disclaimer This presentation contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Re Known and unknown risks, risks uncertainties and other factors could lead to material differences between the forward-looking statements gi
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