Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Baden-Baden 2024 Media Breakfast
17 slides from Munchener Ruckversicherungs-gesellschaft's conference presentation, Oct 21, 2024
Slide 1: Baden-Baden 2024 Media Breakfast
Baden-Baden 2024 Media Breakfast 21 October 2024 9.30 – 11.00 CEST Clarisse Kopff Claudia Strametz Image: hanohiki / stock.adobe.com
Slide 2: Agenda
Agenda European Markets ▪ Executive Leadership Team ▪ Sector Profitability ▪ Supply & Demand Dynamics 1 ▪ NatCat & Casualty Focus: Cyber & Germany ▪ European Cyber 2 ▪ German Market Topics Munich Re’s Proposition ▪ Financial Strength ▪ Client-focused Approach 3 Baden-Baden 2024 21 October 2024 2
Slide 3: Agenda
Agenda European Markets ▪ Executive Leadership Team ▪ Sector Profitability ▪ Supply & Demand Dynamics 1 ▪ NatCat & Casualty ▪ 2 ▪ ▪ ▪ 3 Baden-Baden 2024 21 October 2024 3
Slide 4: Our Executive Leadership Team
1 Our Executive Leadership Team Clarisse Kopff Member of the Board of Management of Munich Re Non-Life Reinsurance Europe & Latin America New New Retiring Joining Dr. Carsten Patrice Dr. Claudia Dr. Matthias Maura Thomas Prussog Michellon Strametz Marwege Freiwald Lallinger UK, NL and Nordics FR, BE
Slide 5: Market continues to face considerable uncertainty
1 Market continues to face considerable uncertainty NatCat Geopolitical activity & civil unrest Market dynamics Cyber threats Inflation Economic outlook Financial strength and underwriting excellence are key to navigating this complexity Baden-Baden 2024 21 October 2024 5
Slide 6: Average 7-year return has been below cost of capital
1 Average 7-year return has been below cost of capital Reinsurance sector RoE ▪ More balanced risk-sharing with primary insurance achieved across 2022 and 2023 20 ▪ This, plus a quiet US hurricane season and higher interest rates, drove earnings above cost of capital in 2023 ▪ Average returns over 7
Slide 7: Moderate overall increase in supply meets stronger demand
1 Moderate overall increase in supply meets stronger demand Supply Demand ▪ Traditional reinsurance capital has recovered since 2022 ▪ Higher frequency and severity of natural catastrophes is leading to ▪ Supply driven by incumbent markets that made better increased awareness returns in 2023 but hig
Slide 8: NatCat: Non-peak perils drive losses in Europe and are on the rise
1 NatCat: Non-peak perils drive losses in Europe and are on the rise Insured market losses in Europe Clear upward trend ▪ Non-peak peril losses prevalent in 24 Europe 2021 2023 22 1999 ▪ In 2024 losses to date are driven by 20 floods, with the worst ones in Germany 1990 and Central Europe 18 ▪ Winte
Slide 9: NatCat protection gap is still significant in Europe
1 NatCat protection gap is still significant in Europe Munich Re has shown its ability to increase capacity when terms and conditions are met Insured NatCat losses European CatXL capacity ≥ 55% 40% - 55% 25% - 40% < 25% limited data 2010 2012 2014 2016 2018 2020 2022 2024 ▪ Europe as a continent tra
Slide 10: Casualty: Selective approach in Motor and Liability lines
1 Casualty: Selective approach in Motor and Liability lines Motor: Market environment Liability: Watch points ▪ In all large European markets, Motor insurance was Social inflation severely hit by inflation: ▪ car parts for physical damage ▪ US exposures in international programmes of ▪ wages and hea
Slide 11: Agenda
Agenda ▪ ▪ ▪ 1 ▪ Focus: Cyber & Germany ▪ European Cyber 2 ▪ German Market Topics ▪ ▪ 3 Baden-Baden 2024 21 October 2024 11
Slide 12: Cyber: Growth potential, particularly in Europe, where cyber insurance density is still low
2 Cyber: Growth potential, particularly in Europe, where cyber insurance density is still low Worldwide cyber premium1 European cyber premium1 6.6 29,0 +29% +22% 3.5 16,2 2.8 13,3 14,1 2.3 9,4 1.7 5,9 7,1 0.9 1.3 2017–2024 2019 2020 2021 2022 2023 2024e 2027e 2019 2020 2021 2022 2023 2024e 2027e Eur
Slide 13: Cyber: Fit-for-purpose accumulation risk management is key
2 Cyber: Fit-for-purpose accumulation risk management is key Clearly defined risks and limits of insurability Manageable accumulation risk To be excluded/not insurable Virus/malware Outbreak of widespread, untargeted Failure of (critical) infrastructure and self-reproducing malware Losses from infra
Slide 14: Germany: We continue to work with our partners on the challenges of our home market
2 Germany: We continue to work with our partners on the challenges of our home market NatCat Fire Motor ▪ 2024 is another year with high ▪ Persistent loss trends in the ▪ Improving trend but still a long NatCat losses in Germany industrial and commercial fire way from positive technical sector resul
Slide 15: Agenda
Agenda ▪ ▪ ▪ 1 ▪ ▪ 2 ▪ Munich Re’s Proposition ▪ Financial Strength ▪ Client-focused Approach 3 Baden-Baden 2024 21 October 2024 15
Slide 16: Striving to be the quality leader and strategic partner
3 Striving to be the quality leader and strategic partner Our strong diversification and We provide long-term consistency financial strength afford us high and prefer strategic partnerships and reliable capacities Quality leader with superior client orientation Our broad and in-depth risk We offer
Slide 17: Image: hanohiki / stock.adobe.com
Image: hanohiki / stock.adobe.com