88 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Feb 25, 2021
Slide 1: Munich Re Group
Munich Re Group 25 February 2021 Please note: Presentation based on 2020 preliminary figures 25 February 2021 1
Slide 2: Agenda
Agenda 01 Munich Re Joachim Wenning 02 Group finance and risk Christoph Jurecka 03 Additional information 25 February 2021 2
Slide 3: Munich Re provides resilience in a challenging year
Munich Re provides resilience in a challenging year Financial highlights 2020 IFRS net income Solvency II ratio 1.2bn ( 208% (237%) Adjusted for COVID-19 claims, Strong capitalisation close to the meeting guidance of upper end of our target range Return on Equity Dividend per share 5.3% (11.7%) 9.80
Slide 4: Delivering on our Ambition 2020
Delivering on our Ambition 20201 Based on good underlying performance Net income targets achieved1 High large P-C RI markets Volatile capital Guidance losses in 2020 only started markets in 2020 Actual selectively and declining Actual in excess of guidance firming from interest rates 1 2 3 2018 onwa
Slide 5: High large losses in 2020
High large losses in 2020 Losses from natural catastrophes on the rise Nat cats in 2020 once again highlight 1 US$ 210bn economic ▪ New climate ambition with science-based, logical, losses from nat cats concrete, binding and measurable targets, compatible with Paris Agreement ▪ Scientifically proven
Slide 6: High large losses in 2020: COVID-19 pandemic
High large losses in 2020 COVID-19 pandemic causes severe economic and industry losses 1 COVID-19 on Munich Re ▪ Provisions for COVID-19-related claims in 2020 cautiously ▪ COVID-19 pandemic causes assessed and confirmed projection of claims costs for severe impact on society, economy 2021 still hol
Slide 7: Continuation of market hardening in P-C reinsurance
Continuation of market hardening in P-C reinsurance Outcome of January renewals fully supports our combined ratio ambition in 2021 2 Renewals 2018 2020 January renewals 2021 Market drivers % ▪ High loss experience especially 1.8 in nat cat, including secondary perils Price change 0.8 0.3 +2.4% ▪ Low
Slide 8: January renewals 2021
January renewals 2021 Profitable growth across all regions and perils Volume change 2 % Europe 30 Lower pressure compared with the US. Main drivers: Low interest rates, general market 20 sentiment and uncertainty around COVID-19 10 North America 0 Strong rate increases in all lines APAC/Africa of bu
Slide 9: Challenging capital market environment
Challenging capital market environment Successfully managed increased volatility and persistently low interest rates Return on investment 3 2% % Germany USA 1% Mitigating yield Low interest attrition without 3.2 0% 3.0 rates increasing risk 2.8 10-year governments -1% 2018 2018 2019 2019 2020 2020 1
Slide 10: Superior total shareholder return (TSR)
Superior total shareholder return (TSR) Accelerated earnings/dividend growth to further drive attractive performance Dividend-per-share (DPS) TSR 1.1.2018 31.12.20202 % 9.8 53.7 50.8 8.6 40.3 21.1 10.2 8.7 1 2016 2017 2018 2019 2020 8.3 ▪ 13.4 ▪ high large losses and volatile capital markets ▪ Share
Slide 11: Outlook 2021 unchanged to December communication
Outlook 2021 unchanged to 1 December communication On the way to achieving our Group Ambition 2025 Group Gross written premiums Net result Return on investment ~ 55bn ~ 2.8bn >2.5% ERGO Combined ratio Gross written premiums Net result P-C Germany International ~ 17.5bn ~ 0.5bn ~ 92%1 ~ 93% Reinsuran
Slide 12: Munich Re Group Ambition 2025
Munich Re Group Ambition 2025 Levers to excel Expansion of core Scale Preference for organic growth Succeed Leverage superior underwriting Shareholders Growing earnings and RoE Uplift asset performance Clients Long-term partner superior products, experience and capacity Employees Create additional b
Slide 13: Munich Re Group Ambition 2025: Financial targets
Munich Re Group Ambition 2025 Financial targets We will deliver Succeed Improved RoE, 2025 EPS growth1 DPS growth1,2 Solvency II ratio in optimal range 12 14% 5% 5% 175 220% Decarbonisation targets in coal, oil and gas 1 CAGR compound annual growth rate 2020- 25 February 2021 13
Slide 14: Group finance and risk
Group finance and risk Christoph Jurecka
Slide 15: Financial results 2020
Group finance and risk Financial results 2020 Pleasing earnings considering heavy large losses and volatile capital markets ▪ Reinsurance: Dynamic business growth, pleasing underlying IFRS net income performance, COVID-19-related claims of ~ 1.2bn ( ▪ ERGO: Strong net result of ▪ Prudent risk manage
Slide 16: FY 2020 COVID-19-related financial impact
Group finance and risk FY 2020 COVID-19-related financial impact 2020 provisions marginally increased, largely unchanged expectation for 2021 IFRS Re- insurance Reinsurance (pre-tax)1 Marine 16 Property/BI 1,001 ▪ FY 2020 COVID-19-related claims increased Total marginally2 by -C) and Credit 201 Cont
Slide 17: Result Q4 2020
Group finance and risk Result Q4 2020 Major drivers IFRS Reinsurance: 75m ERGO: 136m Net income P-C: Apart from COVID-19 related claims of Very pleasing result above run-rate of FY FX losses: 266m 212m L&H: Driven by COVID-19 ( and IBNR for disability), negative US experience guidance despite COVID-
Slide 18: RoE in 2020
Group finance and risk RoE in 2020 Net result Equity1,2 RoE IFRS Group 1.2bn / 22.7bn = 5.3% 23.1bn Equity 31.12.20191 + 1.2bn Net result 2020 ERGO 0.5bn / 5.9bn = 8.8% 1.7bn Dividend/share buy-back in 2020 0.3bn Other Reinsurance 0.7bn / 16.8bn = 4.1% 22.3bn Equity 31.12.20201 Group RoE of ~12% adj
Slide 19: Group investment result
Group finance and risk Group investment result Resilient performance given volatile capital markets IFRS 2020 1.5 0.0 0.3 % 3.0 ▪ Attrition of running yield 2.5 0.8 following sharp decline in interest rates and portfolio derisking slowdown to ~10 bps expected from 2021 onwards Regular Write-ups/ Dis
Slide 20: ERGO IFRS key financials 2020
Group finance and risk ERGO IFRS key financials 2020 ERGO Strategy Programme successfully concluded IFRS ERGO L&H Germany P-C Germany International GWP 17.6bn ( 9.0bn ( 3.7bn ( 4.9bn ( COVID-19 driven decrease in Travel, growth Strong growth driven by increase Stable premium development despite in L
Slide 21: ERGO Strategy Programme (ESP) 2016-2020
Group finance and risk ERGO Strategy Programme (ESP) 2016 2020 Main KPIs show success of ESP Net profit Combined ratio 4.6 pp. ERGO Group +476 P-C Germany 517 97.0 97.5 % 96.0 412 440 92.3 92.4 273 41 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Cost savings1 Combined ratio cumulative, Internat
Slide 22: Reinsurance IFRS key financials 2020
Group finance and risk Reinsurance IFRS key financials 2020 Strong organic growth, high COVID-19-related losses IFRS Reinsurance P-C Reinsurance L&H Reinsurance GWP 37.3bn ( 24.6bn ( 12.7bn ( Strong organic growth in almost all lines of business, Growth across all core markets, in particular taking
Slide 23: Risk Solutions
Group finance and risk Risk Solutions Strong organic growth, increased profitability IFRS Gross written premiums ▪ Strong organic growth across all units, taking advantage of profitable business opportunities +22% in a hardening market ▪ MR Specialty Insurance: Succeeding growth strategy with excell
Slide 24: Unchanged reserve prudency
Group finance and risk Unchanged reserve prudency Protect balance sheet against negative surprises IFRS Managing industry hot spots Munich Re impact Ongoing reserve releases1 COVID-19 Loss complex affects multiple Thorough claims assessment; lines with challenging loss solid reserve position with as
Slide 25: Solvency II ratio
Group finance and risk Solvency II ratio Sound capitalisation continues to support our capital management strategy Economic Development of Solvency II ratio SII sensitivities % % 267 244 245 237 219 216 220 208 Optimal range 175 199 196 202 194 185 Interest rates Equity markets Spread Spread CORP At
Slide 26: SCR development
Group finance and risk SCR development Balanced risk profile between insurance and investment risks maintained Economic SCR increase largely driven by business growth, low interest rates and volatile capital markets bn Total SCR Insurance Property-casualty Life and Health (incl. diversification) ▪ P
Slide 27: German GAAP (HGB) result 2020 supported by one-offs
Group finance and risk German GAAP (HGB) result 2020 supported by one-offs Capital repatriation well-funded Capital bn HGB result 2019 Average 1.3 0.7 2.3 3.5 1.5 2011 2020 Underwriting 0.6 Equalisation provision 3.2 0.1 4.3 result bn Investment result +1.8 10.0 3.0 1.4 9.3 +0.8 Other +0.5 0.3 HGB r
Slide 28: Additional information
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Slide 29: Segment income statement Q4 2020
Additional information: Group finance and risk Segment income statement Q4 2020 Reinsurance Reinsurance ERGO ERGO ERGO Total L/H1 P-C L/H Germany P-C Germany International Q4 2020 Gross written premiums 3,169 6,136 2,312 735 1,278 13,629 Net earned premiums 2,886 5,898 2,323 935 1,193 13,235 Income
Slide 30: Segment income statement 2020
Additional information: Group finance and risk Segment income statement 2020 Reinsurance Reinsurance ERGO ERGO ERGO Total L/H1 P-C L/H Germany P-C Germany International 2020 Gross written premiums 12,707 24,615 9,030 3,677 4,861 54,890 Net earned premiums 11,461 22,566 9,066 3,570 4,560 51,223 Incom
Slide 31: Capital position
Additional information: Group finance and risk Capital position Equity Capitalisation 15.1 15.1 Equity 31.12.2019 30,576 Change in Q4 13.2 12.0 Consolidated result 1,211 212 10.0 Changes 0.3 0.3 0.3 Dividend 1,373 0 0.3 0.3 3.8 5.0 5.0 Unrealised gains/losses 1,654 496 2.8 3.7 Exchange rates 1,392 4
Slide 32: Premium development
Additional information: Group finance and risk Premium development Gross written premiums Segmental breakdown 2019 51,457 Foreign Total 620 exchange 54.9bn Divestments/ investments 103 Organic Reinsurance Property-casualty 24,615 (45%) (p 11.4%) change 4,157 Reinsurance Life and Health 12,707 (23%)
Slide 33: Very strong reserve position
Additional information: Group finance and risk Very strong reserve position Actual basic losses continue to be consistently below actuarial expectations Reinsurance group Comparison of incremental expected losses with actual reported losses 1 By exposure year By line of business 10,000 10,000 Actual
Slide 34: Positive run-off result despite reserve strengthening in selected portfolios
Additional information: Group finance and risk Positive run-off result despite reserve strengthening in selected portfolios without weakening resilience against future volatility Ultimate losses1 Favourable actual vs. expected comparison facilitates ultimate reductions for prior years Accident year
Slide 35: Response to benign emergence of basic losses in line with considered judgement
Additional information: Group finance and risk Reserves Property-casualty Reinsurance Response to benign emergence of basic losses in line with considered judgement Actual vs. expected Changes in projection Business rationale Property Favourable loss development leads to releases ▪ Favourable indica
Slide 36: Property-casualty provision for outstanding claims
Additional information: Group finance and risk Non-life reinsurance reserves Property-casualty provision for outstanding claims By line of business By maturity % % Total Total 51.4bn 51.4bn Third-party liability 37 (37) Marine 3 (3) 0 1 years 34 (35) 5 10 years 13 (12) Motor 21 (22) Credit 3 (3) 1 2
Slide 37: Asbestos and environmental survival ratio
Additional information: Group finance and risk Reserves Asbestos and environmental survival ratio Munich Re Net definitive as at 31 December 20201 Asbestos Environmental A&E total Paid 3,093 929 4,022 Case reserves 407 127 534 IBNR 534 187 721 Total reserves 941 314 1,255 3-year average annual paid
Slide 38: Investment result
Additional information: Group finance and risk Investments Investment result Q4 2020 Return1 2020 Return1 2019 Return1 Regular income 1,472 2.3% 6,273 2.5% 6,751 2.8% Write-ups/write-downs 125 0.2% 1,957 0.8% 309 0.1% Disposal gains/losses 1,488 2.4% 3,698 1.5% 2,779 1.1% Derivatives2 555 0.9% 74 0.
Slide 39: Return on investment by asset class and segment
Additional information: Group finance and risk Investments Return on investment by asset class and segment 2020 %1 Regular Write-ups/ Disposal Extraord. Other ᴓ Market income -downs result derivatives result inc./exp. RoI value ( Afs fixed-income 2.0 0.0 1.2 0.0 0.0 3.2 135,441 Afs non-fixed-income
Slide 40: Investment portfolio
Additional information: Group finance and risk Investments Investment portfolio Investment portfolio Fixed-interest securities1 (%) 31.12.2020 31.12.2019 % Governments/semi-governments 64 63 Pfandbriefe/covered bonds 10 13 Cash/other 1 1 Corporates 19 18 Total Banks 3 2 253bn Structured products 4 4
Slide 41: Fixed-income portfolio
Additional information: Group finance and risk Investments Fixed-income portfolio Total Fixed-income portfolio % Total 215bn Governments/semi-governments 55 (53) Loans to policyholders/mortgage loans 4 (4) Pfandbriefe/covered bonds 18 (21) Structured products 2 (2) Corporates 14 (13) Bank bonds 2 (1
Slide 42: Fixed-income portfolio
Additional information: Group finance and risk Investments Fixed-income portfolio Total Rating structure Regional breakdown % % Without With Total policyholder policyholder 31.12.2020 31.12.2019 AAA 41 (43) BB 3 (3) participation participation Germany 4.5 21.4 25.9 26.8 Total AA 24 (24) <BB 1 (0) US
Slide 43: Fixed-income portfolio: Governments/semi-governments
Additional information: Group finance and risk Investments Fixed-income portfolio Governments/semi-governments Rating structure Regional breakdown % % Without With Total policyholder policyholder 31.12.2020 31.12.2019 AAA 44 (43) BB 2 (2) participation participation Germany 3.7 20.3 24.0 23.9 Total
Slide 44: Fixed-income portfolio: Pfandbriefe/covered bonds
Additional information: Group finance and risk Investments Fixed-income portfolio Pfandbriefe/covered bonds Rating structure Regional breakdown % % 31.12.2020 31.12.2019 Germany 32.2 35.4 AAA 75 (77) BBB 1 (0) France 20.9 19.5 UK 10.2 9.8 Total AA 22 (20) NR 1 (1) Netherlands 8.3 8.4 39.0bn A 2 (2)
Slide 45: Fixed-income portfolio: Corporate bonds
Additional information: Group finance and risk Investments Fixed-income portfolio Corporate bonds (excluding bank bonds) Rating structure Sector breakdown % % 31.12.2020 31.12.2019 AAA 2 (2) BB 17 (11) Utilities 13.9 13.6 Total AA 5 (5) <BB 3 (2) Industrial goods and services 12.9 14.2 29.1bn A 19 (
Slide 46: Fixed-income portfolio: Structured products
Additional information: Group finance and risk Investments Fixed-income portfolio Structured products Structured products portfolio (at market values): Breakdown by rating and region Rating Region Market- AAA AA A BBB <BBB NR USA + RoW Europe Total to-par ABS Consumer-related ABS1 207 152 65 0 0 0 3
Slide 47: Fixed-income portfolio: Bank bonds
Additional information: Group finance and risk Investments Fixed-income portfolio Bank bonds Rating structure Regional breakdown Total % % Senior Sub- Loss- bonds ordinated bearing 31.12.2020 31.12.2019 US 26.6 4.7 0.3 31.6 35.4 AAA 1 (1) BB 4 (4) 7.2 UK 10.4 0.7 0.3 11.4 Total AA 16 (17) <BB 0 (0)
Slide 48: Sensitivities to interest rates, spreads and equities
Additional information: Group finance and risk Investments Sensitivities to interest rates, spreads and equities1 Sensitivity to risk-free interest in (change in basis points) 50bps 25bps +50bps +100bps Change in market value, gross +9.9 +4.8 8.9 16.8 Change in on-balance-sheet reserves, net +2.6 +1
Slide 49: On- and off-balance-sheet reserves
Additional information: Group finance and risk Investments On- and off-balance-sheet reserves 31.12. 31.12. 30.9. 31.12. p 2018 2019 2020 2020 in Q4 Market value of investments 231,876 247,310 251,928 252,789 861 Total reserves 22,002 33,120 36,040 37,269 1,229 On-balance-sheet reserves Fixed-intere
Slide 50: On- and off-balance-sheet reserves
Additional information: Group finance and risk Investments On- and off-balance-sheet reserves On-balance-sheet reserves Off-balance-sheet reserves1 Total reserves (gross) 17,430 19,839 Provision for deferred premium refunds 7,047 11,401 Deferred tax 2,382 2,505 Minority interests 11 Consolidation an
Slide 51: Breakdown of SCR
Additional information: Group finance and risk Risk management Risk disclosure Breakdown of SCR Increase driven by business growth, lower interest rates and volatile capital markets SCR by risk category bn Group RI ERGO Div. 2019 2020 Delta 2020 2020 2020 Increase due to substantial growth in nat ca
Slide 52: Property-casualty risk
Additional information: Group finance and risk Risk management Solvency II Property-casualty risk Top scenario exposures (net of retrocession) AggVaR1 2020 2019 Top exposures 8 2020 2019 1 Atlantic Hurricane 7 2 Earthquake North America Basic losses 4.1 4.0 3 Earthquake Japan 6 Major losses2 8.9 8.3
Slide 53: Life and Health risk
Additional information: Group finance and risk Risk management Life and Health risk Life and Health VaR1 2020 Overall increase driven by Longevity 1.8 1.6 2019 Reinsurance ▪ Business growth, esp. US mortality and UK Mortality 4.8 longevity business 4.3 ▪ Lower interest rates of main currencies Morbi
Slide 54: Market risk
Additional information: Group finance and risk Risk management Market risk SCR by risk category bn Group RI ERGO Div. 2019 2020 2020 2020 2020 Equity 4.2 4.1 2.4 1.7 0.1 Exposure decrease in the context of the COVID-19 crisis General interest rate 3.0 3.1 1.5 2.5 0.9 Increase driven by higher capita
Slide 55: Market risk: asset-liability mismatch
Additional information: Group finance and risk Risk management Market risk Asset-liability mismatch DV011 Portfolio duration Net DV01 Assets Liabilities Assets Liabilities Munich Re2 5 ( 1) 190 (172) 184 (173) 8.9 (8.4) 9.3 (9.0) Reinsurance 11 (12) 49 (46) 38 (34) 6.6 (6.5) 6.7 (6.3) ERGO 6 ( 13) 1
Slide 56: Sensitivities of SII ratio
Additional information: Group finance and risk Risk management Sensitivities of SII ratio Ratio as at 31.12.2020 208% Interest rate +50bps1 219 Interest rate 50bps1 194 Spread +50bps GOV 196 Spread +50bps CORP 202 Equity markets +30% 216 Equity markets 30% 199 FX 20% 203 Inflation +100bps2 205 Atlan
Slide 57: Preliminary SII ratios
Additional information: Group finance and risk Risk management Preliminary SII ratios Munich Re and solo entities1 Internal model EOF SCR S-II Ratio S-II Ratio bn (without TM2) (without TM2) (without TM2) (incl. TM2) Munich Re 39.9 19.2 208% 240% Munich Reinsurance Company 40.3 19.2 210% 242% Munich
Slide 58: ERGO Life and Health Germany
Additional information: ERGO ERGO Life and Health Germany Gross written premiums Major result drivers Q4 2020 Q4 2019 p 2020 2019 p 2019 9,238 Technical result 26 40 14 353 287 66 Foreign exchange 1 Non-technical result 147 143 4 95 102 7 Divestments/investments 0 thereof investment result 1,152 932
Slide 59: ERGO Life and Health Germany
Additional information: ERGO ERGO Life and Health Germany Key figures Life Germany Health Germany GWP Market view3 % Key figures1 2018 2019 2020 Comprehensive insurance ERGO number 2 in German market Reinvestment yield 1.6 1.8 1.9 5.7 3.7 Average yield 2.9 2.9 2.7 2.9 2.9 2.4 Average guarantee2 2.1
Slide 60: ERGO Property-casualty Germany
Additional information: ERGO ERGO Property-casualty Germany Gross written premiums Major result drivers Q4 2020 Q4 2019 p 2020 2019 p 2019 3,500 Technical result 57 72 15 294 303 9 Foreign exchange 2 Non-technical result 6 11 5 39 91 52 Divestments/investments 0 53 52 1 175 18 thereof investment res
Slide 61: ERGO Property-casualty Germany
Additional information: ERGO ERGO Property-casualty Germany Combined ratio Gross written premiums in 2020 (2019) % ◼ Loss ratio ◼ Expense ratio 2018 96.0 62.5 33.4 2019 92.3 60.3 32.0 Total 3,677 m 2020 92.4 61.9 30.5 1 ( 3,500m) Q4 2020 92.8 62.6 30.2 98.1 Motor 707 (680) Legal protection 409 (410)
Slide 62: ERGO International
Additional information: ERGO ERGO International Gross written premiums Major result drivers Q4 2020 Q4 2019 p 2020 2019 p 2019 4,912 Technical result 13 20 33 202 171 31 Foreign exchange 56 Non-technical result 76 44 32 96 45 51 Divestments/investments 103 thereof investment result 165 132 33 425 43
Slide 63: ERGO International
Additional information: ERGO ERGO International Combined ratio Gross written premiums in 2020 (2019) % 95.4 95.0 94.8 95.2 91.8 92.5 93.0 Property-casualty 2,714 (2,791) 90.1 Total 4,861m Life 639 (698) ( 4,912m) Health 1,509 (1,424) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2019 2019 2019 2020 2020 2020 2020 20
Slide 64: Strong footprint in traditional business supplemented by established initiatives
Additional information: Reinsurance Life and Health Overview of major markets Strong footprint in traditional business supplemented by established initiatives and data-driven services Canada ( 1.8bn / 14%) Continental Europe ( 1.8bn / 14%) Asia / MENA ( 3.4bn / 27%) ▪ Leading position in traditional
Slide 65: Overweight in North America and traditional mortality risk
Additional information: Reinsurance Life and Health Overweight in North America and traditional mortality risk 30% 70% 60% 40% Mortality ~60% Canada 20% Morbidity ~30% 70% Continental Europe Longevity ~10% 10% UK/Ireland 10% USA ~35% 40% Canada ~15% USA 60% Cont. Europe ~15% 90% Asia / MENA UK/Irela
Slide 66: Reinsurance Life and Health
Additional information: Reinsurance Life and Health Reinsurance Life and Health Gross written premiums Major result drivers Q4 2020 Q4 2019 p 2020 2019 p 2019 11,716 Technical result 109 43 152 78 365 443 Foreign exchange 187 Non-technical result 96 115 19 303 484 182 Divestments/investments 0 there
Slide 67: IFRS result below expectations
Additional information: Reinsurance Life and Health IFRS result below expectations Driven by COVID-19 strong development of fee income Gross written premiums 2020 2019 ▪ Growth driven by Europe and Asia, and to a lesser extent by North America Gross written premiums 12,707 11,716 Technical result Mo
Slide 68: Financially motivated reinsurance
Additional information: Reinsurance Life and Health Financially motivated reinsurance Strong demand prevails Gross written premiums1 Technical result1 New business contribution1, 2 % of total % of total % of total 200 277 4,793 257 4,306 231 154 205 127 178 89 >100 35 68 32 1,264 1,201 1,267 31 30 1
Slide 69: Asia
Additional information: Reinsurance Life and Health Asia Success through tailor-made market and client strategies Gross written premiums1 Technical result1 New business contribution1, 2 % of total % of total % of total 3,392 202 3,045 315 162 156 289 2,338 >100 244 2,182 1,909 108 190 100 180 26 27
Slide 70: Longevity
Additional information: Reinsurance Life and Health Longevity Strong growth path execution of first transaction outside the UK Gross written premiums Liability p.a.1 % of total 5,072 1,072 3,292 685 614 484 1,884 2,020 417 8 6 6 4 3 697 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Portfolio dev
Slide 71: Financial markets
Additional information: Reinsurance Life and Health Financial markets Comprehensive market risk solutions for the financial services industry IFRS earnings contribution1 Strategic proposition ▪ Offer comprehensive solutions to globally manage market risks and returns ▪ Innovate new business, optimis
Slide 72: Reinsurance Property-casualty
Additional information: Reinsurance Property-casualty Reinsurance Property-casualty Gross written premiums Major result drivers Q4 2020 Q4 2019 p 2020 2019 p 2019 22,091 Technical result 10 296 306 171 1,157 1,328 Foreign exchange 378 Non-technical result 169 266 97 931 607 324 Divestments/investmen
Slide 73: Reinsurance Property-casualty: Combined ratio
Additional information: Reinsurance Property-casualty Reinsurance Property-casualty Combined ratio % ◼ Basic losses ◼ Major losses ◼ Expense ratio 2018 99.4 53.6 11.6 34.2 112.2 2019 100.2 51.4 15.2 33.6 111.6 106.0 2020 105.6 53.9 20.8 30.9 103.9 97.3 104.2 Q4 2020 104.2 51.4 20.2 32.6 99.9 Normali
Slide 74: Core P-C reinsurance: Retrocession
Additional information: Reinsurance Property-casualty Risk trading Core P-C reinsurance Retrocession Continuity despite a difficult market Retrocession Maximum in-force protection per nat cat scenario1 Australia Cyclone US Windstorm NE US Windstorm SE ▪ Protection against peak risks mainly via tradi
Slide 75: Munich Re's maximum in-force nat cat protection
Additional information: Reinsurance Property-casualty Risk trading Core P-C reinsurance Munich Re's maximum in-force nat cat protection Nat cat protection before reinstatement premiums, as at January 2021 Risk swaps Sidecars 1,000 Indemnity retro 500 Australia US Windstorm US Windstorm US EU EU Japa
Slide 76: Overall portfolio profitability increased
Additional information: Reinsurance Property-casualty Overall portfolio profitability increased January renewals 2021 Munich Re portfolio Price and volume change in major lines of business Total Property Casualty Specialty lines Line of business Prop. XL Prop. XL Marine Credit Aviation Premium split
Slide 77: Split by line of business and region
Additional information: Reinsurance Property-casualty Split by line of business and region January renewals 2021 Split by line Casualty Property Marine Credit Aviation of business % 2021 51 33 8 5 3 2020 51 33 8 5 3 Split by Europe Worldwide Asia/Pacific/Africa North America Latin America region % 2
Slide 78: January renewals 2021
Additional information: Reinsurance Property-casualty January renewals 2021 Total property-casualty book1 Regional allocation of January renewals % % Europe 33 Latin America 3 Total Worldwide 27 North America 26 Total 10.5bn 25bn Asia/Pacific/Africa 12 Nat cat shares of renewable portfolio2 % Nat ca
Slide 79: Selective growth in firming market environment
Additional information: Reinsurance Property-casualty January renewals 2021 Selective growth in firming market environment January renewals 2021 % 100 9.0 91.0 +5.4 +14.5 110.9 10,458 943 9,515 +564 +1,516 11,595 Change in premium +10.9% Thereof price movement1 ~ 2.4% Thereof change in exposure for
Slide 80: Optimistic outlook for upcoming renewals
Additional information: Reinsurance Property-casualty Optimistic outlook for upcoming renewals Total P-C book1 Treaty business % January April July Total Total Total Total 25bn 10.5bn 2.0bn 3.6bn Rest of Asia/ Rest of Asia/ Australia/ January 42 Asia/Pacific/Africa North America Pacific/Africa North
Slide 81: Increased top line
Additional information: Reinsurance Property-casualty Portfolio Increased top line Well-balanced diversified portfolio Total P-C book Core P-C Reinsurance % % Casualty 48 (49) ▪ Well-balanced traditional Total1 Total Specialty2 9 (8) portfolio 25bn 19bn Other property 32 (34) ▪ Slight move towards n
Slide 82: Core P-C Reinsurance
Additional information: Reinsurance Property-casualty Portfolio traditional Core P-C Reinsurance Portfolio management and high share of proportional business support earnings resilience % Share increases ▪ Nat cat XL accordingly, Casualty motor 27 (30) Agro 5 (5) ongoing slight shift towards Total C
Slide 83: US casualty
Additional information: Reinsurance Property-casualty US casualty Portfolio quality further improved, while benefiting from favourable market conditions Global traditional casualty book US traditional casualty book % % Total1 Total1 Total1 7.5bn 2.7bn 2.7bn 2 5 Motor liability 52 5 Motor liability 2
Slide 84: Further long-term growth in cyber (re)insurance targeted
Additional information: Reinsurance Property-casualty Further long-term growth in cyber (re)insurance targeted Munich Re with cutting-edge expertise and leading market presence Gross written premiums in P-C reinsurance cyber portfolio US$ m ▪ Early and full commitment to cyber allows us to shape the
Slide 85: 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 31.12. (millions) Shares (millions) 2019 2020 2020 2020 Shares in 148.7 143.6 141.5 1.4 140.1 140.3 140.1
Slide 86: Financial calendar 2021
Financial calendar 2021 Balance sheet media conference for 2020 financial statements Analysts' and Investors' call Half-year financial report as at 30 June 2021 Annual General Meeting 2021 25 FEBRUARY 28 APRIL 10 AUGUST 17 MARCH 6 MAY 9 NOVEMBER Quarterly statement as at 31 March 2021 Quarterly stat
Slide 87: For information, please contact
For 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 Email: c
Slide 88: 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