30 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Feb 26, 2025
Slide 1: Balance sheet media conference for 2024 financial statements
Yuichiro Chino / Getty Images Munich Re Group Balance sheet media conference for 2024 financial statements 26 February 2025 Please note: Presentation based on 2024 preliminary figures
Slide 2: Agenda
Balance sheet media conference Agenda 01 02 Munich Re Group finance and risk Analysts’ and Investors’ Call 2024 26 February 2025 2
Slide 3: Munich Re
01 Munich Re Source: Munich Re
Slide 4: Highlights 2024
Highlights 2024 Financial performance Capital repatriation Exceeding guidance for the fourth time ▪ DPS lifted to €201 (+33%) in a row with a net result of €5.7bn – ▪ Share buy-back increased to €2bn2 strong underlying performance across (+€0.5bn) all segments Resilience Market outlook Diversificati
Slide 5: Ambition 2025
Ambition 2025 % RoE improvement % DPS growth Profitability well above 33.3 Shareholders participate in 18.2 cost of capital growing earnings 15.8 12.6 13.5 15.2 12.2 8.8 14–16% ≥5% 2021 2022 2023 2024 2021 2022 2023 20243 % EPS growth % Solvency II 287 26.3 Profitable expansion 260 267 Well above op
Slide 6: Ambition 2025
Ambition 2025 – ILLUSTRATION – 1 2 3 Underwriting Investments Capital 18.2% 11.9% ROE 2020 Accounting change Business Margin Investment Capital generation ROE 2024 normalised to IFRS 9/17 growth improvement result and management Seizing business opportunities in an Active investment High capital ret
Slide 7: New reporting segmentation from 2025
New reporting segmentation from 2025 Reinsurance ERGO P-C L&H L&H Germany P-C Germany International P&C GSI L&H Germany International Already >30% ~70% of ~30% of of revenues revenues revenues within P&C within ERGO within ERGO Less cyclical and less volatile business segments Analysts’ and Investor
Slide 8: Global Specialty Insurance
Global Specialty Insurance Growing commercial insurer with emphasis on small and mid- market in North America MR Specialty North America Key focus areas ▪ Grow share in existing specialty products Leveraging engineering, Unified specialty insurance unit, Strong footprint in ▪ Add additional specialt
Slide 9: Global Specialty Insurance
Global Specialty Insurance Insurance revenue CAGR Outlook 2025 €bn 11.5% ~10 Strong growth expected to continue 8.8 Strong organic growth 8.0 7.2 across all units, taking advantage of attractive market opportunities 2022 2023 2024 2025e Combined ratio 92.5 93.6 Outlook 2025 85.4 ~90% % Rates general
Slide 10: Global Specialty Insurance Outlook 2025
Global Specialty Insurance Outlook 2025 American Discipline in risk selection and pricing in response to elevated weather-related Modern loss potential – underwriting actions taken in 2024 will earn through in 2025 Delivery of exceptional customer service plus further innovative solutions HSB facili
Slide 11: P&C reinsurance
P&C reinsurance Price Renewals 2021–2024 January Ensuring profitability and portfolio quality % by means of disciplined underwriting change1 3.1 renewals 20252 2.3 ▪ Good renewal in a very attractive market environment; pricing improvements of past years largely sustained 0.5 0.2 ▪ Portfolio quality
Slide 12: P&C reinsurance
P&C reinsurance Volume change Property XL % Leveraging our strong balance sheet in a healthy market environment and benefiting from good client relationships, but also 15 relinquishing business where appropriate 10 Casualty motor proportional Casualty motor proportional Growth by participating in ra
Slide 13: L&H reinsurance
L&H reinsurance Total technical result1 €bn Exceptionally strong growth in 2024 – new New 2.1 business expected to continue to outgrow business portfolio run-off Stock of CSM increased to ~€14.5bn, Reliable 1.4 facilitating high sustainable annual earnings earnings contribution 0.9 Risk-transfer Str
Slide 14: ERGO Germany
ERGO Germany ERGO Germany Profitable growth in Life & Health and P&C Insurance revenue Net result ▪ Ongoing top-line growth driven by established hybrid-customer sales model €bn €m and award-winning products (e.g., dental, term life) 14.5 14.8 ▪ Sustainable profitability achieved by strong underwrit
Slide 15: ERGO International
ERGO International Net result GWP CAGR €m €bn % 2022–2024 International Europe1 Strengthening leading position in major markets ▪ Profitable growth driven in part by Poland P&C and Belgium Health 6.4 9 5.4 5.9 7 ▪ Promising development in M&A activities in Baltics P&C and Nordics Health ▪ Price adju
Slide 16: Investment result
Investment result Beneficial market environment Active investment management Fixed-income portfolio yield benefits from higher interest rates Indicative return contribution to Group RoI (bps) 30 4.4% Reinvestment yield 20 2.2% Running 10 3.4% yield 0 1.5% -10 2020 2021 2022 2023 2024 2020 2021 2022
Slide 17: Capital repatriation
Capital repatriation Dividends vs. share buy-backs Total payout1 ▪ Capital repatriation well-funded by high 2015–2024 amount of German GAAP distributable earnings and sound solvency position DPS 20.0 € ▪ Around 85% of IFRS net earnings paid out to shareholders over the last 10 years Dividends ▪ Prop
Slide 18: Non-financial targets – Decarbonisation
Non-financial targets – Decarbonisation Ambition Achievements GHG emission reduction1 2025 in 2024 Total –25 to –29% –55% Assets2 Financed GHG Thermal coal –35% –54% emmissions3 Oil and gas –25% –56% Thermal coal –35% Thermal coal mining –56% Liabilities4 Insurance-related Coal-fired power plants –4
Slide 19: Non-financial targets – Gender Ambition
Non-financial targets – Gender Ambition Share of women at management level Achievements in 2024 Munich Re Group representation remained 40% Growth stable at 39.5% in 2024 38.5 39.5 39.5 37.8 35.1 Representation of women in talent Talent programmes has increased from 48.4% in 2023 to 48.8% in 2024 Di
Slide 20: Our commitment to success
Our commitment to success TSR 1.1.2021 – 31.12.20241 % 147.3 Strong balance sheet – 134.8 deploying substantial capital in 124.8 Growth an attractive market, but 111.6 prepared to manage the cycle 104.4 80.0 77.8 Leveraging diversification, Profitability superior underwriting and active investment m
Slide 21: Outlook 2025
Outlook 2025 Group Insurance revenue Net result Return on investment ~€64bn ~€6.0bn >3.0% ERGO Insurance revenue Net result Combined ratio Combined ratio Germany International ~€22bn ~€0.9bn ~89% ~90% Reinsurance Insurance revenue Net result Combined ratio Combined ratio Total technical result P&C G
Slide 22: Group finance and risk
02 Group finance and risk Source: Munich Re
Slide 23: Financial results 2024
Group finance and risk Financial results 2024 IFRS net result ▪ Very pleasing underwriting performance across all segments contributes to net result above guidance €5.7bn ▪ Better-than-expected investment result (RoI: 3.1%) includes deliberate (€4.6bn) fixed-income disposal losses in favour of futur
Slide 24: Investment result
Group finance and risk Investment result IFRS 2024 Regular income % Increase driven by higher 3.5 –0.2 0.0 –0.4 0.5 –0.3 interest rates and active portfolio 3.1 management Disposal gains/losses Accepting losses on fixed- income investments (Reinsurance ~€760m, ERGO ~€340m) to accelerate trajectory o
Slide 25: ERGO – IFRS key financials 2024
Group finance and risk ERGO – IFRS key financials 2024 IFRS ERGO L&H Germany P&C Germany International Insurance €20.8bn €10.1bn (€9.9bn) €4.7bn (€4.5bn) €6.0bn (€5.6bn) revenue (€20.1bn) Continued growth in long- and short-term health (e.g., dental cover) as well as travel Growth driven by fire/pro
Slide 26: Reinsurance – IFRS key financials 2024
Group finance and risk Reinsurance – IFRS key financials 2024 IFRS Reinsurance P&C reinsurance L&H reinsurance Insurance €40.1bn €28.3bn (€27.1bn) €11.8bn (€10.7bn) revenue (€37.8bn) Core P&C: Taking advantage of attractive market conditions; Global Specialty Insurance: significant growth across all
Slide 27: Global Specialty Insurance – IFRS key financials 2024
Group finance and risk Global Specialty Insurance – IFRS key financials 2024 IFRS American MR Specialty MR Specialty Modern HSB North America Global Markets Insurance revenue Strong organic growth, Ongoing strong top- Low single-digit top- Ongoing growth driven Opportunistic growth €bn taking advant
Slide 28: Well established reserve prudency protects balance sheet against unexpected developments
Group finance and risk Well established reserve prudency protects balance sheet against unexpected developments IFRS Managing industry Munich Re Ongoing reserve hot spots measures releases1 US liability Reserve position further strengthened as prudent 5.0 5.0% High litigation and social inflation tr
Slide 29: Solvency II ratio
Group finance and risk Solvency II ratio Economic Development of the Solvency II ratio SII sensitivities % % 287 290 299 260 267 283 282 282 275 227 254 220 208 Optimal range 175 Interest rates Equity markets Spread GOV Spread CORP Atlantic +/-50bps1 +/-30% +50bps +50bps Hurricane 2 2020 2021 2022 2
Slide 30: Risk profile
Group finance and risk Risk profile Economic Well-balanced risk profile: SCR composition of investment and insurance risks % 38 39 40 Investment risks 49 46 Increase driven by capital market effects as well as a modest active exposure build-up Diversification benefit between risk categories Insuranc