Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Q3 2022 Earnings Presentation
35 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 05 Additional information 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 Fixed-interest securities 54.9 (54.3) ▪ Reduction of equity quota driven by market Loans 19.8 (22.8) development and disposals Total ▪ Decrease of duration due to highe
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: Additional information
Additional information
Slide 21: Segment income statement Q3 2022
Additional information: Group finance and risk Segment income statement Q3 2022 €m L/H1 P-C ERGO ERGO ERGO Total reinsurance reinsurance L/H Germany P-C Germany International Q3 2022 Gross premiums written 3,472 10,240 2,407 869 1,239 18,228 Net earned premiums 3,202 8,615 2,403 1,015 1,216 16,451 I
Slide 22: Segment income statement 9M 2022
Additional information: Group finance and risk Segment income statement 9M 2022 €m L/H1 P-C ERGO ERGO ERGO Total reinsurance reinsurance L/H Germany P-C Germany International 9M 2022 Gross premiums written 10,128 26,230 7,303 3,384 3,864 50,910 Net earned premiums 9,260 23,599 7,205 2,951 3,612 46,6
Slide 23: 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 Q3 2022 Consensus Delta Q3 2022 Consensus Impact2 Property-casualty reinsurance –928 –853 –75 Combined ratio 108.2 113.2 431 L
Slide 24: Premium development
Additional information: Group finance and risk Premium development Gross premiums written Segmental breakdown €m €m 9M 2021 44,673 Foreign Total 2,493 exchange €50.9bn Divestments/ –118 investments Property-casualty reinsurance 26,230 (52%) (p 22.1%) Organic change 3,862 Life and health reinsurance
Slide 25: Return on investment by asset class and segment
Additional information: Group finance and risk – Investments Return on investment by asset class and segment 9M 2022 %1 Regular Write-ups/ Disposal Extraord. Other ᴓ Market income -downs result derivatives result inc./exp. RoI value (€m) Afs fixed-income 2.1 –0.8 0.3 0.0 0.0 1.6 128,929 Afs non-fixe
Slide 26: Investment result – Reinsurance
Additional information: Investments Investment result – Reinsurance Life and health reinsurance €m Q3 2022 Return1 9M 2022 Return1 9M 2021 Return1 Regular income 198 2.9% 570 2.7% 517 2.3% Write-ups/write-downs –19 –0.3% –93 –0.4% –5 0.0% Disposal gains/losses 9 0.1% 48 0.2% 156 0.7% Derivatives2 –2
Slide 27: Investment result – ERGO
Additional information: Investments Investment result – ERGO Life and Health Germany €m Q3 2022 Return1 9M 2022 Return1 9M 2021 Return1 Regular income 826 3.1% 2,606 3.1% 2,540 2.7% Write-ups/write-downs –535 –2.0% –1,608 –1.9% –228 –0.2% Disposal gains/losses 678 2.6% 1,753 2.1% 1,205 1.3% Derivati
Slide 28: Investment result – ERGO International
Additional information: Investments Investment result – ERGO International €m Q3 2022 Return1 9M 2022 Return1 9M 2021 Return1 Regular income 65 1.5% 192 1.4% 205 1.4% Write-ups/write-downs –30 –0.7% –53 –0.4% 16 0.1% Disposal gains/losses –3 –0.1% 41 0.3% 90 0.6% Derivatives2 –7 –0.2% –23 –0.2% –42
Slide 29: 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 +6.0 +2.9 –5.5 –10.5 Change in on-balance-sheet reserves, net +1.9 +0.9 –1.8 –3.4 Ch
Slide 30: On- and off-balance-sheet reserves
Additional information: Investments On- and off-balance-sheet reserves €m 31.12. 31.3. 30.6. 30.9. p 2021 2022 2022 2022 in Q3 Market value of investments 257,485 245,860 230,951 228,298 –2,653 Total reserves 30,357 16,209 935 –8,597 –9,532 On-balance-sheet reserves Fixed-interest securities 8,078 –
Slide 31: On- and off-balance-sheet reserves
Additional information: Investments On- and off-balance-sheet reserves €m On-balance-sheet reserves Off-balance-sheet reserves1 30.9. 31.12. 30.9. 31.12. 2022 2021 2022 2021 Total reserves (gross) –13,082 13,172 4,485 17,185 Provision for deferred premium refunds 4,648 –5,409 1,188 –8,115 Deferred t
Slide 32: 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 30.9. (millions) Shares (millions) 2021 9M 2022 9M 2022 2022 Shares in 140.1 –1.4 – 138.7 140.3 140.1 139.
Slide 33: Financial calendar
Financial calendar 2022/2023 Annual Report (Group), Annual Report (Company) Investor Day Quarterly Statement Quarterly Statement IFRS 17 as at 31 March 2023 as at 30 September 2023 15 DECEMBER 16 MARCH 17 MAY 8 NOVEMBER 23 FEBRUARY 5 MAY 10 AUGUST Annual General Meeting Half-Year Financial Report 20
Slide 34: 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 35: 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