20 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Nov 9, 2016
Slide 1: Quarterly statement as at 30 September 2016
Source: Shutterstock [M] Quarterly statement as at 30 September 2016 9 November 2016 Jörg Schneider
Slide 2: Agenda
Agenda 1 Munich Re (Group) 2 2 ERGO 8 3 Munich Health 12 4 Reinsurance 14 5 Outlook 18 Quarterly statement as at 30 September 2016 2
Slide 3: Business highlights Q3 2016
Munich Re (Group) – Financial highlights 9M 2016 Business highlights Q3 2016 Developing innovative propositions ERGO completes acquisition of ATE with digital insurance start-ups and and becomes largest property- digital verticals, e.g. Slice, Trov casualty insurer in Greece ERGO Strategy Programme
Slide 4: Financial highlights 9M 2016
Munich Re (Group) – Financial highlights 9M 2016 After pleasing Q3 result, annual profit to significantly exceed €2.3bn guidance Munich Re (Group) Q3 2016 (9M 2016) Net result Technical result €m Investment result €m Net result €m €684m (9M: €2,095m) 2,602 5,872 5,942 2,391 2,290 Good underwriting p
Slide 5: Capitalisation – IFRS capital position
Munich Re (Group) – Capitalisation IFRS capital position Equity €m Capitalisation €bn Equity 31.12.2015 30,966 Change Q3 0.4 0.4 0.4 0.4 0.3 Consolidated result 2,095 684 4.3 4.3 4.2 4.4 4.4 Changes Dividend –1,329 – Unrealised gains/losses 2,315 304 Exchange rates –565 –177 Share buy-backs –711 –31
Slide 6: Investment portfolio
Munich Re (Group) – Investment portfolio Investment portfolio Investment portfolio1 % Portfolio management in Q3 Land and buildings Fixed-interest securities Ongoing geographic diversification 2.7 (2.9) 56.2 (55.7) Slight increase in corporate bonds Reduction of cash and bank bonds Increase
Slide 7: Investment result
Munich Re (Group) – Investment result Investment result Investment result €m Q2 2016 Return1 Q3 2016 Return1 9M 2016 Return1 9M 2015 Return1 Regular income 1,823 3.1% 1,550 2.6% 5,001 2.8% 5,588 3.1% Write-ups/write-downs –22 –0.0% –43 –0.1% –284 –0.2% –653 –0.4% Disposal gains/losses 910 1.5% 696 1
Slide 8: ERGO
ERGO Quarterly statement as at 30 September 2016 8
Slide 9: ERGO 9M 2016 vs. 9M 2015
ERGO ERGO 9M 2016 vs. 9M 2015 Gross premiums written €m Major result drivers €m 9M 9M Technical result 9M 2015 12,490 2016 2015 9M: L/H Germany (–€55m), mainly due to Foreign exchange –98 Technical result 298 453 –154 usual assessment of interest-rate assumptions in Q3 in Life Divestments/invest
Slide 10: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio % Gross premiums written €m Loss ratio Expense ratio Other 279 582 Motor 2014 95.3 63.1 32.2 2015 97.9 64.7 33.2 Legal protection 309 9M 2016 96.0 61.3 34.7 Q3 2016 96.1 62.8 33.3 TOTAL 103.9 €2,566m 98.1 98.6 97.1 96.1 Fire/property 453 96.1 93
Slide 11: ERGO International – Property-casualty
ERGO ERGO International – Property-casualty Combined ratio % Gross premiums written – Property-casualty €m Loss ratio Expense ratio Other 287 710 Poland 2014 97.3 58.5 38.8 Greece 132 TOTAL 2015 104.7 65.3 39.4 €1,849m 9M 2016 98.5 59.5 39.0 Turkey 185 535 Legal protection Q3 2016 98.6 60.1 38.5
Slide 12: Munich Health
Munich Health Quarterly statement as at 30 September 2016 12
Slide 13: Munich Health 9M 2016 vs. 9M 2015
Munich Health Munich Health 9M 2016 vs. 9M 2015 Gross premiums written €m Major result drivers €m 9M 9M Technical result 9M 2015 4,260 2016 2015 9M: Overall combined ratio at 99.3% Foreign exchange –101 Technical result 32 33 –1 (–0.2%) Divestments/investments 0 Reinsurance: 100.9% (+0.1%) Non
Slide 14: Reinsurance
Reinsurance Quarterly statement as at 30 September 2016 14
Slide 15: Reinsurance Life
Reinsurance Reinsurance Life 9M 2016 vs. 9M 2015 Gross premiums written €m Major result drivers €m 9M 9M Technical result 9M 2015 7,653 2016 2015 Q3: Strong contribution mainly from Foreign exchange –263 Technical result 318 247 71 Asia, Canada and Europe supported by one-off effects Divestments
Slide 16: Reinsurance Property-casualty
Reinsurance Reinsurance Property-casualty 9M 2016 vs. 9M 2015 Gross premiums written €m Major result drivers €m 9M 9M Technical result 9M 2015 13,583 2016 2015 9M: Major loss ratio clearly below Foreign exchange –330 Technical result 1,642 1,870 –228 expectation of 12.0% Q3: Lower basic losses
Slide 17: Reinsurance Combined ratio
Reinsurance Combined ratio Combined ratio % Basic losses Major losses Expense ratio 2014 92.7 53.0 7.2 32.5 99.8 2015 89.7 50.8 6.2 32.6 94.5 9M 2016 93.7 55.2 7.2 31.3 92.3 93.3 91.2 Q3 2016 92.5 55.3 6.6 30.6 92.5 88.4 Major Reserve Normalised losses Nat cat Man-made releases1 combined ratio
Slide 18: Outlook
Outlook Quarterly statement as at 30 September 2016 18
Slide 19: Outlook 2016
Outlook 2016 Munich Re (Group) Net result Gross premiums written Significantly above €2.3bn €47–49bn (prev. €2.3bn) Focus on bottom-line growth prevails Return on investment Combined ratio ~3% ~95% ~98% Solid return given ongoing Reinsurance ERGO Germany low-interest-rate environment ~99% ~99% Munic
Slide 20: 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