Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München — Q3 2020 Earnings Presentation
38 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Nov 5, 2020
Slide 1: Quarterly statement as at 30 September 2020
Quarterly statement as at 30 September 2020 5 November 2020 Christoph Jurecka Image: Klaus Ohlenschläger / dpa Picture Alliance
Slide 2: Quarterly statement as at 30 September 2020
Quarterly statement as at 30 September 2020 1 2 3 4 5 Munich Re ERGO Reinsurance Outlook Backup Quarterly statement as at 30 September 2020 5 November 2020 2
Slide 3: Munich Re
Munich Re 1 Image: Vertigo3d / Getty ImagesiStockphoto
Slide 4: Munich Re posts a decent Q3 result considering high major losses
Munich Re – Financial highlights Q3 2020 Munich Re posts a decent Q3 result considering high major losses Munich Re Q3 2020 (9M 2020) Net result Technical result Investment result Net result €m €m €m €199m (€999m) 2,431 2,490 Reinsurance result of €63m 5,826 5,308 impacted by COVID-19 related claims
Slide 5: L&H reinsurance – Increase in COVID-19-related claims
Munich Re – COVID-19 L&H reinsurance – Increase in COVID-19-related claims consistent with pandemic development in different regions COVID-19 related losses Outlook/ in L&H reinsurance Projection 2020 ▪ Losses dominated by far by the US ▪ Claims development depends on further mortality experience, e
Slide 6: P-C reinsurance – Continuous worsening of the pandemic
Munich Re – COVID-19 P-C reinsurance – Continuous worsening of the pandemic leaving its mark in Q3 COVID-19 related losses Outlook/ in P-C Reinsurance Projection 2020 ▪ Losses across various lines of business, ▪ Risk of further contingency claims continues, contingency losses making up the largest s
Slide 7: Capital position
Munich Re – Capitalisation Capital position Equity €m Capitalisation €bn Equity 31.12.2019 30,576 Change in Q3 0.3 0.3 0.3 0.3 Consolidated result 999 199 0.3 3.8 3.9 3.7 5.0 Changes 3.7 Dividend –1,373 0 Unrealised gains/losses 1,158 372 Exchange rates –931 –651 Share buy-backs –359 0 15.1 13.2 12.
Slide 8: Investment portfolio
Munich Re – Investments Investment portfolio Investment portfolio1 % Portfolio management in Q3 Land and buildings Fixed-interest securities ▪ Investments in longer term US and Australian 4.9 (4.7) 55.4 (53.9) government bonds as well as short-term bank bonds and ABS at the expense of TOTAL covered
Slide 9: Investment result
Munich Re (Group) – Investments Investment result €m Q3 2020 Return1 9M 2020 Return1 9M 2019 Return1 Regular income 1,536 2.4% 4,801 2.6% 5,133 2.8% Write-ups/write-downs –265 –0.4% –1,832 –1.0% –285 –0.2% Disposal gains/losses 644 1.0% 2,210 1.2% 1,671 0.9% Derivatives2 –65 –0.1% 629 0.3% –208 –0.1
Slide 10: ERGO
ERGO 2 Image: dem10 / iStockphoto Getty Images
Slide 11: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Gross premiums written €m Major result drivers €m 9M 2019 6,912 9M 2020 9M 2019 Q3 2020 Q3 2019 Technical result 331 234 96 306 81 225 Foreign exchange –1 Non-technical result –56 –28 –28 –166 –128 –38 Divestments/investments 0 thereof investment result 2,454 2,
Slide 12: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Gross premiums written €m Major result drivers €m 9M 2019 2,804 9M 2020 9M 2019 Q3 2020 Q3 2019 Technical result 237 231 6 92 81 11 Foreign exchange 5 Non-technical result –34 –80 47 –14 –20 6 Divestments/investments 0 thereof investment result 122 105 17 29 3
Slide 13: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio % Gross premiums written in 9M 2020 (9M 2019) €m ◼ Loss ratio ◼ Expense ratio Other Motor 2018 96.0 259 (224) 617 (593) 62.5 33.4 2019 92.3 60.3 32.0 9M 2020 92.2 61.6 30.6 Marine 182 (165) Q3 2020 90.9 61.9 29.0 TOTAL Fire/property €2,943m 585 (542
Slide 14: ERGO International
ERGO ERGO International Gross premiums written €m Major result drivers €m 9M 2019 3,657 9M 2020 9M 2019 Q3 2020 Q3 2019 Technical result 189 191 –2 78 96 –18 Foreign exchange –32 Non-technical result 20 1 19 1 44 –42 Divestments/investments –103 thereof investment result 260 298 –38 81 138 –57 O
Slide 15: ERGO International
ERGO ERGO International Combined ratio % Gross premiums written in 9M 2020 (9M 2019) €m Property-casualty Life 95.4 95.2 1,985 (2,087) 470 (507) 94.5 95.0 94.8 91.8 92.5 TOTAL 90.1 €3,584m (€3,657m) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Health 2018 2019 2019 2019 2019 2020 2020 2020 1,129 (1,062) 9M 2020 P-C 9M 9
Slide 16: Reinsurance
Reinsurance 3 Image: John Lund Getty Images
Slide 17: Reinsurance – Life and Health
Reinsurance Reinsurance – Life and Health Gross premiums written €m Major result drivers €m 9M 2019 8,625 9M 2020 9M 2019 Q3 2020 Q3 2019 Technical result 31 322 –291 10 194 –184 Foreign exchange –33 Non-technical result 207 369 –162 110 103 7 Divestments/investments 0 thereof investment result
Slide 18: Reinsurance – Property-casualty
Reinsurance Reinsurance – Property-casualty Gross premiums written €m Major result drivers €m 9M 2019 16,920 9M 2020 9M 2019 Q3 2020 Q3 2019 Technical result –182 1,453 –1,635 –399 87 –486 Foreign exchange –17 Non-technical result 762 341 421 334 306 28 Divestments/investments 0 thereof investme
Slide 19: Reinsurance – Property-casualty
Reinsurance Reinsurance – Property-casualty Combined ratio % ◼ Basic losses ◼ Major losses ◼ Expense ratio 2018 99.4 53.6 11.6 34.2 111.6 112.2 2019 100.2 51.4 15.2 33.6 105.1 103.9 106.0 97.3 9M 2020 106.1 54.8 21.0 30.3 99.9 Q3 2020 112.2 55.6 26.7 29.9 86.9 Major Reserve Normalised losses Nat cat
Slide 20: Outlook
Outlook 4 Image: Klaus Ohlenschläger / dpa Picture Alliance
Slide 21: Outlook 2020
Outlook 2020 Group Gross premiums written Net result Return on investment1 ~€54bn withdrawn ~3% ERGO Combined ratio Gross premiums written1 Net result1 P-C Germany1 International1 ~17.5bn ~€530m ~92% ~94% Reinsurance Combined ratio Technical result, incl. fee income Gross premiums written Net result
Slide 22: Backup
Backup 5 Image: imaginima / Getty Images
Slide 23: Segment income statement Q3 2020
Backup: Group finance and risk Segment income statement Q3 2020 €m Reinsurance Reinsurance ERGO ERGO ERGO Total L/H1 P-C L/H Germany P-C Germany International Q3 2020 Gross premiums written 3,127 6,798 2,254 808 1,162 14,150 Net earned premiums 2,844 5,680 2,254 917 1,133 12,827 Income from technica
Slide 24: Segment income statement 9M 2020
Backup: Group finance and risk Segment income statement 9M 2020 €m Reinsurance Reinsurance ERGO ERGO ERGO Total L/H1 P-C L/H Germany P-C Germany International 9M 2020 Gross premiums written 9,538 18,479 6,718 2,943 3,584 41,261 Net earned premiums 8,575 16,668 6,743 2,635 3,367 37,988 Income from te
Slide 25: Actual vs. analysts' consensus
Backup: Group finance and risk Actual vs. analysts’ consensus Operating result – Actual vs. analysts’ consensus1 €m KPIs – Actual vs. analysts’ consensus1 €m Q3 2020 Consensus Difference Q3 2020 Consensus Impact2 Reinsurance Property-casualty –65 –57 –8 Combined ratio 112.2% 109.2% –172 Reinsurance
Slide 26: Premium development
Backup: Group finance and risk Premium development Gross premiums written €m Segmental breakdown €m Reinsurance ERGO Property-casualty Life and Health Germany 9M 2019 38,917 18,479 (45%) ( 9.2%) 6,718 (16%) ( –2.8%) Foreign exchange –78 ERGO TOTAL Divestments/ Property-casualty Germany investments
Slide 27: Development of combined ratio
Backup: Reinsurance Development of combined ratio Combined ratio vs. basic losses (%) Combined ratio Basic loss ratio 103.9 102.0 100.7 105.1 97.3 103.9 111.6 106.0 99.9 112.2 88.6 86.9 55.6 53.2 55.7 55.3 50.4 54.8 50.1 54.7 46.4 54.7 54.1 55.6 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 201
Slide 28: Return on investment by asset class and segment
Backup: Group finance and risk – Investments Return on investment by asset class and segment 9M 2020 Regular Write-ups/ Disposal Extraord. Other ᴓ Market %1 income -downs result derivatives result inc./exp. RoI value (€m) Afs fixed-income 2.0 0.0 1.0 – – 3.0 134,700 Afs non-fixed-income 4.8 –13.4 4.
Slide 29: Investment result – Reinsurance
Backup: Investments Investment result – Reinsurance Reinsurance Life and Health (€m) Q3 2020 Return1 9M 2020 Return1 9M 2019 Return1 Regular income 186 2.5% 572 2.6% 600 2.9% Write-ups/write-downs –4 0.0% –18 –0.1% 0 0.0% Disposal gains/losses 80 1.1% 130 0.6% 274 1.3% Derivatives2 –3 0.0% 17 0.1% 4
Slide 30: Investment result – ERGO
Backup: Investments Investment result – ERGO Life and Health Germany (€m) Q3 2020 Return1 9M 2020 Return1 9M 2019 Return1 Regular income 819 2.6% 2,587 2.7% 2,722 2.9% Write-ups/write-downs –182 –0.6% –1,426 –1.5% –180 –0.2% Disposal gains/losses 217 0.7% 1,280 1.3% 827 0.9% Derivatives2 –78 –0.2% 2
Slide 31: Investment result – ERGO
Backup: Investments Investment result – ERGO International (€m) Q3 2020 Return1 9M 2020 Return1 9M 2019 Return1 Regular income 83 1.7% 259 1.8% 273 2.0% Write-ups/write-downs –4 –0.1% –25 –0.2% 32 0.2% Disposal gains/losses 9 0.2% 28 0.2% 53 0.4% Derivatives2 –2 0.0% 17 0.1% –41 –0.3% Other income/e
Slide 32: Sensitivities to interest rates, spreads and equities
Backup: Investments Sensitivities to interest rates, spreads and equities1 Sensitivity to risk-free interest in €bn (change in basis points) –50bps –25bps +50bps +100bps Change in market value, gross +10.2 +5.0 –9.2 –17.4 Change in on-balance-sheet reserves, net +2.8 +1.4 –2.6 –4.9 Change in off-bal
Slide 33: On- and off-balance-sheet reserves
Backup: Investments On- and off-balance-sheet reserves €m 31.12. 31.12. 30.6. 30.9. 2018 2019 2020 2020 in Q3 Market value of investments 231,876 247,310 249,858 251,928 2,070 Total reserves 22,002 33,120 35,321 36,040 719 On-balance-sheet reserves Fixed-interest securities 4,953 10,738 13,058 13,
Slide 34: On- and off-balance-sheet reserves
Backup: Investments On- and off-balance-sheet reserves €m On-balance-sheet reserves Off-balance-sheet reserves1 Total reserves (gross) 16,364 19,676 Provision for deferred premium refunds –6,501 –11,690 Deferred tax –2,295 –2,439 Minority interests –9 – Consolidation and currency effects –101 – Shar
Slide 35: Changes to shares in circulation
Backup: Shareholder information Changes to shares in circulation Acquisition of Retirement of Weighted average number of shares in circulation Shares 31.12. own shares in own shares in 30.9. (millions) 2019 9M 2020 9M 2020 2020 (millions) 148.7 143.6 140.3 140.1 Shares in 141.5 –1.4 – 140.1 circulat
Slide 36: Financial calendar
Backup: Shareholder information Financial calendar 2020 8 December Investor Day 2021 Balance sheet media conference for 2020 financial statements 25 FEBRUARY Analysts' and Investors' call 17 MARCH Annual report (Group), Annual report (Company) 28 APRIL Annual General Meeting 2021 6 MAY Quarterly sta
Slide 37: For information, please contact
Backup: Shareholder information For information, please contact Investor Relations Team Christian Becker-Hussong Thorsten Dzuba Christine Franziszi Head of Investor & Rating Agency Relations Tel.: +49 (89) 3891-8030 Tel.: +49 (89) 3891-3875 Tel.: +49 (89) 3891-3910 Email: tdzuba@munichre.com Email:
Slide 38: 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