Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Q1 2022 Earnings Presentation
21 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 10, 2022
Slide 1: Quarterly statement as at 31 March 2022
Munich Re Group Quarterly statement as at 31 March 2022 10 May 2022 Christoph Jurecka Quarterly statement as at 31 March 2022 10 May 2022 1
Slide 2: Agenda
Quarterly statement as at 31 March 2022 Agenda 01 Munich Re 02 ERGO 03 Reinsurance 04 Outlook Quarterly statement as at 31 March 2022 10 May 2022 2
Slide 3: Munich Re
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Slide 4: Resilient result given the challenging geopolitical and macroeconomic environment
Munich Re – Financial highlights Q1 2022 Resilient result given the challenging geopolitical and macroeconomic environment Munich Re Q1 2022 (Q1 2021) Consolidated result Technical result Investment result Consolidated result €m €m €m €608m (€589m) Reinsurance (€511m): Below-average major 1,691 loss
Slide 5: Capital position
Munich Re – Capitalisation Capital position Equity Capitalisation €m €bn 16.3 Equity 31.12.2021 30,945 15.1 14.7 13.2 Consolidated result 608 12.0 Changes 0.3 0.3 0.3 Dividend 0 0.3 0.3 3.8 5.0 5.1 Unrealised gains/losses –4,425 3.7 5.1 Exchange rates 437 Share buy-backs 0 Other 218 Equity 31.3.2022
Slide 6: Investment portfolio
Munich Re – Investments Investment portfolio Investment portfolio1 Portfolio management % ▪ Further expansion of illiquid investments ▪ Slight reduction of equity investments ▪ In response to the sharp increase in bond yields: Total lower market values of fixed-income investments €246bn and decrease
Slide 7: Investment result
Munich Re – Investments Investment result €m Q1 2022 Return1 Q1 2021 Return1 Regular income 1,458 2.3% 1,429 2.3% Write-ups/write-downs –1,122 –1.8% –171 –0.3% Disposal gains/losses 960 1.5% 983 1.6% Derivatives2 –116 –0.2% –368 –0.6% Other income/expenses –192 –0.3% –182 –0.3% Investment result 987
Slide 8: ERGO
ERGO
Slide 9: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Key ▪ Lower technical result due to normalisation of Technical result messages operating performance €m ▪ Decrease driven by normalisation of claims development in health ▪ Comparatively low investment result (esp. Life) 116 and travel (due to increased travel ▪ Hig
Slide 10: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Key ▪ Strong growth above market estimate Technical result messages ▪ Technical result significantly impacted by major €m Combined ratio of 97.4% (94.2%) above guidance level driven by: losses … 51 ▪ Significantly higher than expected ▪ … partly compensated for by
Slide 11: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio Gross premiums written in Q1 2022 (Q1 2021) % €m ◼ Loss ratio ◼ Expense ratio 2020 92.4 61.9 30.5 2021 92.4 62.6 29.8 Total Q1 2021 94.2 € 1,679 m 63.0 31.2 (€1,535m) Q1 2022 97.4 65.8 31.6 Motor 398 (383) Legal protection 128 (124) 95.6 97.4 93.4 9
Slide 12: ERGO International
ERGO ERGO International Key ▪ Good portfolio growth despite divestments Technical result messages €m ▪ Combined ratio improved to 92.6% ▪ Improved technical result across all lines of (93.8%), supported by: business 91 ▪ Strong operational performance ▪ Lower investment result and higher taxes in Gr
Slide 13: ERGO International
ERGO ERGO International Combined ratio Gross written premiums in Q1 2022 (Q1 2021) % €m 95.2 93.0 93.8 93.1 92.5 92.2 92.3 92.6 Property-casualty 786 (763) Total 90.1 €1,386 m Life 150 (153) (€1,362m) Health 450 (446) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2020 2020 2020 2021 2021 2021 2021 2022 Q1 2022 P-
Slide 14: Reinsurance
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Slide 15: Life and health reinsurance
Reinsurance Life and health reinsurance Key ▪ Technical result incl. fee income of €20m below pro-rata annual Technical result ambition owing to … €m ▪ COVID-19-related losses of messages €150m, mainly in the US ▪ … prevailing pandemic and a few individual large mortality claims, while fee income co
Slide 16: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Key ▪ Strong premium growth of 25.4% Technical result €m ▪ Below-average major losses – messages ▪ Pleasing technical performance remaining major-loss budget for ▪ Expense ratio benefits from cost reductions and premium growth 866 the rest of the year: ~€3.3
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 30.9 112.2 112.8 106.0 Q1 2021 98.9 54.4 15.5 28.9 104.2 98.9 Q1 2022 91.3 52.7 9.2 29.4 99.9 91.3 96.4 90.1 Major Reserve Normalised losses1 Nat cat1 Man
Slide 18: Selective growth in stable market environment
Reinsurance Selective growth in stable market environment April renewals 2022 % 100 –17.7 82.3 +11.3 +14.0 107.6 €m 2,508 –445 2,063 +282 +352 2,697 ▪ Overall, stable rates on good level Change in premium +7.6% ▪ Japan: Several consecutive Thereof price movement1 ~ –0.1% years of rate increase and T
Slide 19: Outlook
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Slide 20: Outlook 2022
Outlook 2022 Group Gross premiums written Consolidated result Return on investment ~ €64bn ~ €3.3bn >2.5% (prev. ~ €61bn) Combined ratio ERGO Gross premiums written Consolidated result P-C Germany International ~ €18.5bn ~ €0.6bn1 ~ 91% ~ 92% Combined ratio Technical result, incl. fee Reinsurance Gr
Slide 21: 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