Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2

Munchener Ruckversicherungs-gesellschaft — Munich Re — Q1 2016 Earnings Presentation

20 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 10, 2016

1. Slide 1: Quarterly statement as at 31 March 2016

   Source: Shutterstock [M] Quarterly statement as at 31 March 2016 10 May 2016 Jörg Schneider

2. Slide 2: Agenda

   Agenda 1 Munich Re (Group) 2 2 ERGO 7 3 Munich Health 11 4 Reinsurance 13 5 Outlook 18 Quarterly statement as at 31 March 2016 2

3. Slide 3: Munich Re (Group) – Financial highlights Q1 2016

   Munich Re (Group) – Financial highlights Q1 2016 Q1 result below expectations Munich Re (Group) Q1 2016 Net result Technical result €m Investment result €m Net result €m €436m 912 945 1,820 Benign major losses not compensating 1,572 790 for lower investment return and negative one-off effects at ERG

4. Slide 4: Munich Re (Group) – Capitalisation

   Munich Re (Group) – Capitalisation IFRS capital position Equity €m Capitalisation €bn Equity 31.12.2015 30,966 Consolidated result 436 0.4 0.4 0.3 0.3 Changes 0.3 4.4 4.3 4.4 Dividend 0 5.5 4.4 Unrealised gains/losses 1,395 Exchange rates –660 Share buy-backs –235 17.5% Other –111 15.3% Equity 31.3.

5. Slide 5: Munich Re (Group) – Investment portfolio

   Munich Re (Group) – Investment portfolio Investment portfolio Investment portfolio1 % Portfolio management in Q1 Land and buildings Fixed-interest securities  Government bond exposure: Shift from 2.8 (2.9) 56.3 (55.7) France and Spain to emerging markets, USA and supranationals  Covered bonds: Shi

6. Slide 6: Munich Re (Group) – Investment result

   Munich Re (Group) – Investment result Investment result Investment result €m Q1 2016 Return1 Q1 2015 Return1 Regular income 1,628 2.8% 1,801 3.0% Write-ups/write-downs –219 –0.4% –152 –0.2% Disposal gains/losses 218 0.4% 998 1.6% Derivatives2 74 0.1% –706 –1.2% Other income/expenses –128 –0.2% –121

7. Slide 7: ERGO

   ERGO

8. Slide 8: ERGO – Key financials

   ERGO – Key financials ERGO Q1 2016 vs. Q1 2015 Gross premiums written €m Net result €m Q1 2015 4,585 Q1 2015 102 Foreign exchange –29 Technical result –34 Divestments/investments – Non-technical result1 8 Organic change –61 Other –101 Q1 2016 4,495 Q1 2016 –25  Decline in L/H Germany (–€79m) and Sl

9. Slide 9: ERGO Property-casualty Germany

   ERGO Property-casualty Germany ERGO Property-casualty Germany Combined ratio % Gross premiums written €m Loss ratio Expense ratio Other 123 340 Motor 2014 95.3 63.1 32.3 Legal protection 117 TOTAL 2015 97.9 64.7 33.2 Personal accident 167 €1,219m 62.8 35.8 Fire/property 225 248 Liability Q1 2016 98.

10. Slide 10: ERGO International

    ERGO International ERGO International Combined ratio % Gross premiums written €m Loss ratio Expense ratio Other 92 225 Poland 2014 97.3 58.5 38.8 TOTAL Greece 46 €615m 2015 104.7 65.3 39.4 Q1 2016 93.2 55.6 37.6 Turkey 62 190 Legal protection Combined ratio Q1 2016 % 115.3 98.1 102.3 104.1 90.0 91.4

11. Slide 11: Munich Health

    Munich Health

12. Slide 12: Munich Health – Key financials

    Munich Health – Key financials Munich Health Q1 2016 vs. Q1 2015 Gross premiums written €m Net result €m Q1 2015 1,443 Q1 2015 21 Foreign exchange –52 Technical result 3 Divestments/investments – Non-technical result1 –4 Organic change –108 Other –4 Q1 2016 1,283 Q1 2016 16  Negative FX effects mai

13. Slide 13: Reinsurance

    Reinsurance Quarterly statement as at 31 March 2016 13

14. Slide 14: Reinsurance Life – Key financials

    Reinsurance Life – Key financials Reinsurance Life Q1 2016 vs. Q1 2015 Gross premiums written €m Net result €m Q1 2015 2,412 Q1 2015 70 Foreign exchange –109 Technical result –33 Divestments/investments – Non-technical result1 –52 Organic change –98 Other 35 Q1 2016 2,205 Q1 2016 20  Negative FX ef

15. Slide 15: Reinsurance Property-casualty – Key financials

    Reinsurance Property-casualty – Key financials Reinsurance Property-casualty Q1 2016 vs. Q1 2015 Gross premiums written €m Net result €m Q1 2015 4,598 Q1 2015 598 Foreign exchange –69 Technical result 97 Divestments/investments – Non-technical result1 –255 Organic change –1 Other –14 Q1 2016 4,528 Q

16. Slide 16: Reinsurance Property-casualty – Combined ratio

    Reinsurance Property-casualty – Combined ratio Combined ratio Combined ratio % Basic losses Major losses Expense ratio 101.4 2014 92.7 53.0 7.2 32.5 2015 89.7 50.8 6.2 32.6 94.5 Q1 2016 88.4 54.0 2.4 32.0 93.3 88.4 91.3 91.2 92.3 Major Reserve Normalised losses Nat cat Man-made releases1 combined ra

17. Slide 17: Reinsurance Property-casualty – April renewals 2016

    Reinsurance Property-casualty – April renewals 2016 April renewals confirm slowing of price declines, while attractive business opportunities lead to top-line increase April renewals 2016 % 100 –20.5 79.5 6.4 72.6 158.5  April renewals dominated by single clients rather than by larger portfolios €m

18. Slide 18: Outlook

    Outlook Quarterly statement as at 31 March 2016 18

19. Slide 19: Outlook 2016

    Outlook 2016 Munich Re (Group) Net result Return on investment €2.3bn (prev. €2.3–2.8bn) ~3% Revision of outlook mainly due to inclusion of ERGO strategy Solid return given ongoing programme – Positive ERGO result now unlikely low-interest-rate environment Gross premiums written Reinsurance – Combin

20. 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

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