Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2

Munchener Ruckversicherungs-gesellschaft — Munich Re — Investor Presentation (June 2007)

25 slides from Munchener Ruckversicherungs-gesellschaft's investor presentation, Jun 20, 2007

1. Slide 1: Press workshop: Jewellers' Block Insurance

   Press workshop JEWELLERS’ BLOCK INSURANCE London, 20 June 2007

2. Slide 2: Agenda

   Press workshop – Jewellers’ block insurance Agenda Part one Introduction to jewellers’ block insurance at Munich Re (Lidia Prestipino, Munich Re) Part two Specific exposure, coverage and major perils (Philippe Dietz, Munich Re) Protection measures (John Shaw, S.W. Associates) Motivation and psycholo

3. Slide 3: Agenda – Part one

   Press workshop – Jewellers’ block insurance Agenda – Part one Definition of jewellers’ block insurance Development of jewellers’ block insurance Jeweller’s block at Munich Re Munich Re’s diversified approach to the business Premium volume Services Lidia Prestipino – Munich Re 20.06.2007 3

4. Slide 4: Definition of jewellers' block insurance

   Press workshop – Jewellers’ block insurance Definition of jewellers’ block insurance ƒ Covers all the perils and risks of diamond and/or jewellery business “en bloc” – from the mine to the jeweller’s shop ƒ Scope of cover: Insured against robbery, theft and other loss in transit and processing, as w

5. Slide 5: Development of jewellers' block

   Press workshop – Jewellers’ block insurance Development of jewellers’ block ƒ Origin of JB insurance back to the 18th century ƒ Main players were a few specialised syndicates at Lloyd’s (within “specie” business) ƒ Overcapacity in the 1990s resulted in bad loss experience and poor results for insure

6. Slide 6: Jewellers' block at Munich Re

   Press workshop – Jewellers’ block insurance Jewellers’ block at Munich Re ƒ Over 30 years of underwriting experience in different markets ƒ Worldwide centre of competence in Munich ƒ bundles specialised expertise, ƒ secures quality control of underwriting and results on a Munich Re Group basis, ƒ de

7. Slide 7: Munich Re's diversified approach to the business

   Press workshop – Jewellers’ block insurance Munich Re’s diversified approach to the business ƒ Via reinsurance of primary insurance clients ƒ Via local brokers in the different countries and in the London market ƒ Via fronting by Munich Re’s subsidiary Great Lakes UK Lidia Prestipino – Munich Re 20.

8. Slide 8: Premium volume

   Press workshop – Jewellers’ block insurance Premium volume ƒ Total premium volume worldwide around US$ 500m ƒ Premium income Munich Re 2006: €34m (about US$ 42.7m1) 2 7 3 22 Europe Asia Rest of World Israel 1 average rate of exchange US$ 1 = €1.2558 Lidia Prestipino – Munich Re 20.06.2007 8

9. Slide 9: Munich Re's service in jewellers' block

   Press workshop – Jewellers’ block insurance Munich Re’s service in jewellers’ block ƒ Technical support: Analysis ƒ Provide important capacity (direct and reinsurance) for retailers, wholesalers, manufacturers and diamond dealers ƒ Support of an international organisation with offices around the wor

10. Slide 10: Agenda – Part two

    Press workshop – Jewellers’ block insurance Agenda – Part two Specific exposure Coverage Major perils Claims examples Protection measures Motivation and psychological profile Planning robberies Security awareness 20.06.2007 10

11. Slide 11: Specific exposure

    Press workshop – Jewellers’ block insurance Specific exposure ƒ Concentration of high values in small areas (window display) ƒ Mostly relatively small articles (diamonds) ƒ Possibility of reprocessing/melting goods (gold) ƒ Goods can easily be sold ƒ Existing worldwide black market (prestigious watc

12. Slide 12: Coverage: Premises and transit section

    Press workshop – Jewellers’ block insurance Coverage: Premises and transit section ƒ Comprises all activities taking place at the jeweller’s premises, be it retail shop or factory and covers the entire stock of a jeweller and ƒ Comprises all activities taking place outside the jeweller’s premises, i

13. Slide 13: Major perils

    Press workshop – Jewellers’ block insurance Major perils ƒ BURGLARY i.e. theft by forced entry into the premises ƒ ROBBERY (HOLD-UP) i.e. theft by using violence, but also pure threat of bodily injury or death ƒ TIGER KIDNAPPING i.e. theft at premises while family of owner kept hostage at private ho

14. Slide 14: Ram raid in a jewellery shop

    Press workshop – Jewellers’ block insurance Ram raid in a jewellery shop Philippe Dietz – Munich Re 20.06.2007 14

15. Slide 15: Concentration of high values in small areas

    Press workshop – Jewellers’ block insurance Concentration of high values in small areas Criminals are always attracted by pieces in the window displays Philippe Dietz – Munich Re 20.06.2007 15

16. Slide 16: Concentration of high values in small areas

    Press workshop – Jewellers’ block insurance Concentration of high values in small areas With the result … Philippe Dietz – Munich Re 20.06.2007 16

17. Slide 17: Burglary loss

    Press workshop – Jewellers’ block insurance Burglary loss Philippe Dietz – Munich Re 20.06.2007 17

18. Slide 18: In case of a burglary a total loss might be considered

    Press workshop – Jewellers’ block insurance In case of a burglary a total loss might be considered … Philippe Dietz – Munich Re 20.06.2007 18

19. Slide 19: Robberies are mostly committed during opening or closing

    Press workshop – Jewellers’ block insurance Robberies are mostly committed during the opening or closing of the premises. 25% 20% 15% 10% 5% 0% 8h 9h 10 h 11 h 12 h 13 h 14 h 15 h 16 h 17 h 18 h 19 h 20 h night NC Philippe Dietz – Munich Re 20.06.2007 19

20. Slide 20: Protection measures

    Press workshop – Jewellers’ block insurance Protection measures How to protect against criminals ƒ Attitude and attention ƒ Distinguish customers from crooks ƒ Keep your security protections sharp John Shaw – S.W. Associates 20.06.2007 20

21. Slide 21: Protection measures

    Press workshop – Jewellers’ block insurance Protection measures Technical protection measures Premises: Physical Electronic Human Travellers: Limit values Gadgets Human Exhibitions: Temporary Physical Human When a robber points a gun at you in a shop, it is too late to react! John Shaw – S.W. Associ

22. Slide 22: Motivations and psychological profile

    Press workshop – Jewellers’ block insurance Motivations and psychological profile ƒ There is no typical criminal profile. ƒ Golden rule: There is always a balance of risk and reward. ƒ Extreme psychological pressure at the moment of attack Æ High risk of dangerous outcome ƒ What is the focus of the

23. Slide 23: Planning robberies

    Press workshop – Jewellers’ block insurance Planning robberies Common characteristics of attacks: ƒ Good knowledge about security procedures and protection ƒ Good information about the profession and premises with focus on movement of people and goods Æ looking for weak points ƒ Focus on high value

24. Slide 24: Security awareness

    Press workshop – Jewellers’ block insurance Security awareness ƒ Criminals do their homework and monitor the target. Æ They need at least some direct contact. ƒ Good security is essential, but it should not be taken for granted. Æ Too much routine provokes mistakes (e.g. indiscretion, valuable infor

25. Slide 25: Thank you very much for your attention

    Thank you very much for your attention.

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