Munchener Ruckversicherungs-Gesellschaft AG · XETR:MUV2
Munchener Ruckversicherungs-Gesellschaft — Munich Re — Cheuvreux – Financials Conference 2009
17 slides from Munchener Ruckversicherungs-Gesellschaft's conference presentation, Dec 1, 2009
Slide 1: Primary Insurance within Munich Re
PRIMARY INSURANCE WITHIN MUNICH RE Cheuvreux – Financials Conference 2009 1 December 2009 Torsten Oletzky, CEO ERGO Group Cheuvreux – Financials Conference 2009 1
Slide 2: Primary insurance – Key business of Munich Re
Overview – Integrated business model Primary insurance – Key business of Munich Re Munich Re – Premium breakdown by segment (consolidated) €bn Primary insurance Reinsurance Property-casualty Property-casualty 5.9 (16%) 14 0 (37%) 14.0 Total 2008 €37.8bn Reinsurance Primary insurance Lif 4.9 Life: 4
Slide 3: Primary insurance confirming turnaround to profit
Q1 –3 results – Highlights primary insurance Primary insurance confirming turnaround to profit Gross premiums written Technical result Combined ratio property-casualty property casualty €m €m % Q1–3 Q1–3 Q1–3 12 706 12,706 1 105 1,105 90 0 90.0 2008 2008 2008 Q1–3 Q1–3 Q1–3 12,983 655 94.2 2009 2009
Slide 4: Many steps to create a fully integrated company
New brand strategy Many steps to create a fully integrated company ERGO 1997 ERGO Inter- national 1998 Joint asset management: MEAG Joint data centres Life Life Health Legal Life Expens. Health 2000 Joint claims management Health P-C Start of IT applications integration P-C Legal P-C P-C Internation
Slide 5: Strong emphasis on the ERGO brand
New brand strategy Strong emphasis on the ERGO brand Long-term Long term trigger: Customer behaviour Short-term Short term trigger: Direct insurance Trend: Customers use more than one sales Insolvency of Arcandor (Karstadt and Quelle) channel to buy insurance Affiliation of KQV to ERGO not wel
Slide 6: Realignment facilitating a leaner ERGO structure
New brand strategy Realignment facilitating a leaner ERGO structure Change Merger of legal entities – goal: only one risk carrier per segment Victoria Life closed for new business for the time being ERGO Direct Insurance to start in Q1 2010 Other companies to follow in Q2 2010 – operative st
Slide 7: ERGO positioned throughout all segments – Cost-reduction initiative well under way
ERGO Group – Overview of initiatives ERGO positioned throughout all segments – Cost-reduction Cost reduction initiative well under way Economic E i crisis i i puts t pressure on growth th and d margins i 1 Life Implementation of strategic initiatives well under way Market leader in Germany; lo
Slide 8: Strategic initiatives: Customised approaches towards in-force and new business
Life 1 Strategic initiatives: Customised approaches towards in-force and new business Challenges for business in force % EUR Swap yield curves1 % Implied volatility1 5 100 4 80 Hedge against 3 60 extreme interest- 2 40 31.12.2006 31.12.2007 rate development 1 20 31.12.2008 30.09.2009 scenarios 0 0 0
Slide 9: Market changes due to challenges in the social security system
Health 2 Market changes due to challenges in the social security system Health reform environment 2009 Outlook Health reform environment still demanding but Waiting period for New business in new government discussing potential changes eligibility for private employee customer health insurance segme
Slide 10: Attractive business mix with combined ratio consistently better than 95% target
Property-casualty 3 Attractive business mix with combined ratio consistently better than 95% target ERGO 2008 – GPW German market 2008 – GPW Other Motor Other Motor 6.7% 20.4% 12.2% 34.9% Legal expenses Legal expenses 14 3% 14.3% 5 6% 5.6% Liability Liability 13.6% 15.0% Personal Personal Fire accid
Slide 11: New brand and ambitious plans
Direct insurance 4 New brand and ambitious plans KarstadtQuelle Versicherungen ERGO Direct Germany’s most popular direct insurer – more than four million Tap into additional target customers and GWP of more than €1bn groups Market M k t leader l d iin personalised li d direct di t iinsurance
Slide 12: Growing importance of international business
International operations 5 Growing importance of international business ERGO in Europe ERGO in Asia Market position Market among TOP5 in presence either life or non-life Market presence Highlights Europe Highlights g g Asia Focus on Eastern and Southern Europe South Korea: Direct motor insurer E
Slide 13: Strong focus on increasing efficiency
Cost reduction 6 Strong focus on increasing efficiency Administrative expense ratio – Life1 Cornerstones 3.7 3.9 ERGO Reduction in FTEs of 1,800 by year-end 2010 3.5 Approx. 500 free FTEs; in addition early- 3.4 Market 3.3 3.3 3.1 3.5 34 3.4 33 3.3 2.9 retirement arrangements, g , etc. for appro
Slide 14: ERGO well-positioned for profitable growth
Outlook ERGO well-positioned for profitable growth Sustainable contribution from financial turnaround envisaged in 2010 New brand strategy to sharpen brand profile and strengthen sales power Pre-crisis targets for net profit and GWP unsustainable – RoE ambition of 12–15% for 2012 confirmed Cheuvreux
Slide 15: Financial calendar
Backup: Shareholder information Financial calendar FINANCIAL CALENDAR 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 payment
Slide 16: For information, please contact
Backup: Shareholder information For information, please contact MUNICH RE 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: cfranziszi@m
Slide 17: Disclaimer
Backup: Shareholder information Disclaimer This p presentation contains forward-looking g statements that are based on current assumptions p and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-l