22 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 6, 2021
Slide 1: Quarterly statement as at 31 March 2021
Munich Re Group Quarterly statement as at 31 March 2021 6 May 2021 Christoph Jurecka Quarterly statement as at 31 March 2021 6 May 2021 1
Slide 2: Agenda
Quarterly statement as at 31 March 2021 Agenda 01 Munich Re 02 ERGO 03 Reinsurance 04 Outlook Quarterly statement as at 31 March 2021 6 May 2021 2
Slide 3: Munich Re
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Slide 4: After solid start to the year, on track to achieve annual targets
Munich Re – Financial highlights Q1 2021 After solid start to the year, on track to achieve annual targets Munich Re Q1 2021 (Q1 2020) Net result Technical result Investment result Net result €m €m €m €589m (€221m) 1,920 589 Reinsurance: Good operational 480 1,691 development mitigates impact from m
Slide 5: Accumulated COVID-19-related financial impact for 2020 and Q1 2021
Munich Re Accumulated COVID-19-related financial impact for 2020 and Q1 2021 €m Q1 2021: Provisions increased by ~ €270m Re- ~ +€0.3bn ~€3.7bn ~€3.4bn ▪ Increase in P-C: ~ €100m (largely driven by insurance Contingency 1,744 contingency business), L&H: ~ €167m (pre-tax)1 Property/BI 1,003 ▪ P-C: 73%
Slide 6: Capital position
Munich Re – Capitalisation Capital position Equity Capitalisation €m €bn Equity 31.12.2020 15.1 15.6 29,994 13.2 Consolidated result 589 12.0 Changes 10.0 0.3 0.3 0.3 Dividend 0 0.3 0.3 3.8 5.0 5.1 Unrealised gains/losses –2,090 2.8 3.7 Exchange rates 641 Share buy-backs 0 Other 258 Equity 31.03.202
Slide 7: Investment portfolio
Munich Re – Investments Investment portfolio Investment portfolio1 Portfolio management % ▪ Increase of equity exposure due to investments and favourable development of stock markets ▪ Expansion of emerging-market and high-yield Total corporate bonds at the expense of covered bonds €249bn ▪ Reinvest
Slide 8: Investment result
Munich Re – Investments Investment result €m Q1 2021 Return1 Q1 2020 Return1 Regular income 1,429 2.3% 1,544 2.5% Write-ups/write-downs –171 –0.3% –1,459 –2.4% Disposal gains/losses 983 1.6% 377 0.6% Derivatives2 –368 –0.6% 1,600 2.6% Other income/expenses –182 –0.3% –142 –0.2% Investment result 1,6
Slide 9: ERGO
ERGO
Slide 10: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 2,315 Technical result 116 82 35 Foreign exchange –1 Non-technical result 20 –93 113 Divestments/investments 0 thereof investment result 898 839 59 Organic change –50 Other –42 17 –59 Q1 202
Slide 11: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 1,439 Technical result 51 59 –8 Foreign exchange –3 Non-technical result –15 –4 –11 Divestments/investments 0 thereof investment result 29 51 –22 Organic change 99 Other –12 –34 22 Q1 2021
Slide 12: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio Gross premiums written in Q1 2021 (Q1 2020) % €m ◼ Loss ratio ◼ Expense ratio 2019 92.3 60.3 32.0 Total 2020 92.4 61.9 30.5 €1,535m (€1,439m) Q1 2021 94.2 63.0 31.2 98.1 Motor 383 (373) Legal protection 124 (123) 92.1 93.2 93.4 92.5 92.8 94.2 90.9 F
Slide 13: ERGO International
ERGO ERGO International Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 1,295 Technical result 51 36 15 Foreign exchange –24 Non-technical result 16 19 –3 Divestments/investments –2 thereof investment result 95 100 –5 Organic change 93 Other –7 –9 2 Q1 2021 1,362 Net resu
Slide 14: ERGO International
ERGO ERGO International Combined ratio Gross written premiums in Q1 2021 (Q1 2020) % €m 95.4 95.0 94.8 95.2 93.8 91.8 92.5 93.0 Property-casualty 763 (702) 90.1 Total €1,362m Life 153 (170) (€1,295m) Health 446 (423) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2019 2019 2019 2020 2020 2020 2020 2021 Q1 2021 P-C
Slide 15: Reinsurance
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Slide 16: Reinsurance Life and Health
Reinsurance Reinsurance Life and Health Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 3,079 Technical result –4 14 –18 Foreign exchange –123 Non-technical result 109 52 57 Divestments/investments 0 thereof investment result 245 226 19 Organic change 103 Other –53 –58 5
Slide 17: Reinsurance Property-casualty
Reinsurance Reinsurance Property-casualty Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 6,156 Technical result 265 –74 339 Foreign exchange –399 Non-technical result 187 306 –118 Divestments/investments 0 thereof investment result 423 703 –281 Organic change 574 Other –
Slide 18: Reinsurance Property-casualty
Reinsurance Reinsurance Property-casualty Combined ratio % ◼ Basic losses ◼ Major losses ◼ Expense ratio 2019 100.2 51.4 15.2 33.6 111.6 112.2 2020 105.6 53.9 20.8 30.9 106.0 104.2 103.9 Q1 2021 98.9 54.4 15.5 28.9 97.3 99.9 98.9 Major Reserve Normalised 86.9 losses Nat cat Man-made releases1 combin
Slide 19: Positive price dynamics continue
Reinsurance Positive price dynamics continue April renewals 2021 % 100 –6.2 93.8 +12.9 10.5 117.1 ▪ Positive price development €m 1,952 –122 1,830 +251 +205 2,286 overall, with varying trends depending on claims Change in premium +17.1% experience and market Thereof price movement1 ~ 2.4% situation
Slide 20: Outlook
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Slide 21: Outlook 2021
Outlook 2021 Group Gross written premium Net result Return on investment ~ €57bn ~ €2.8bn >2.5% (prev. ~ €55bn) ERGO Combined ratio Gross written premium Net result P-C Germany International ~ €17.5bn ~ €0.5bn ~ 92%1 ~ 93% Reinsurance Combined ratio Technical result, incl. fee Gross written premium
Slide 22: 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