Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Q1 2020 Earnings Presentation
20 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 7, 2020
Slide 1: Quarterly statement as at 31 March 2020
Quarterly statement as at 31 March 2020 Christoph Jurecka, Group CFO 7 May 2020 Image: Klaus Ohlenschläger / dpa Picture Alliance
Slide 2: Quarterly statement as at 31 March 2020
Quarterly statement as at 31 March 2020 1 Munich Re 2 ERGO 3 Reinsurance 4 Outlook Quarterly statement as at 31 March 2020 7 May 2020 2
Slide 3: Covid-19: Dynamic situation with ongoing high uncertainty
Munich Re – Covid-19 Covid-19: Dynamic situation with ongoing high uncertainty, affecting assets and liabilities of the insurance industry Covid-19 Population Economy Capital markets ▪ Strong increase in ▪ Government lock downs ▪ Slump in equity markets infections and fatalities ▪ Event cancellation
Slide 4: Financial impact on Munich Re manageable
Munich Re – Covid-19 Financial impact on Munich Re manageable Life/Health P-C Investments ▪ No notable impact so far ▪ ~€800m in Covid-19- ▪ Equity impairments and ▪ Higher mortality in the related claims across net disposal losses: P&L impact various lines of business … –€1,669m in Q1 US not relate
Slide 5: Pleasing result given exceptional circumstances
Munich Re – Financial highlights Q1 2020 Pleasing result given exceptional circumstances Munich Re Q1 2020 (Q1 2019) Net result Technical result Investment result Net result €221m (€633m) €m €m €m Reinsurance result of €149m 647 1,920 633 1,757 impacted by Covid-19-related losses in P-C and burden f
Slide 6: Capital position
Munich Re – Capitalisation Capital position Equity €m Capitalisation €bn Equity 31.12.2019 30,576 0.4 0.3 0.3 Consolidated result 221 4.2 0.3 0.3 3.8 Changes 3.9 2.8 3.7 Dividend 0 Unrealised gains/losses –1,121 Exchange rates –105 Share buy-backs –359 12.6 13.2 12.6 Other –96 12.0 10.0 Equity 31.3.
Slide 7: Investment portfolio
Munich Re – Investments Investment portfolio Investment portfolio1 % Portfolio management in Q1 Land and buildings Fixed-interest securities ▪ Expansion of corporates and emerging market 5.0 (4.7) 54.2 (53.9) bonds as well as investments in government bonds with longer maturities stabilise reinvestm
Slide 8: Investment result
Munich Re – Investments Investment result €m Q1 2020 Return1 Q1 2019 Return1 Regular income 1,544 2.5% 1,611 2.7% Write-ups/write-downs –1,459 –2.4% –83 –0.1% Disposal gains/losses 377 0.6% 602 1.0% Derivatives2 1,600 2.6% –231 –0.4% Other income/expenses –142 –0.2% –142 –0.2% Investment result 1,92
Slide 9: ERGO
ERGO 2 Image: dem10 / iStockphoto Getty Images
Slide 10: ERGO
ERGO ERGO Gross premiums written €m Major result drivers €m Q1 2019 4,995 Q1 2020 Q1 2019 Technical result 179 145 35 Foreign exchange 0 Non-technical result –80 –7 –73 Divestments/investments –49 thereof investment result 991 1,116 –125 Organic change 103 Other –27 –53 26 Q1 2020 5,050 Net result
Slide 11: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio % Gross premiums written in Q1 2020 (Q1 2019) €m ◼ Loss ratio ◼ Expense ratio Other Motor 130 (106) 373 (353) 2018 96.0 62.5 33.4 2019 92.3 60.3 32.0 Q1 Marine 2020 93.4 61.0 32.4 52 (49) TOTAL Fire/property €1,439m 307 (281) (€1,349m) 97.9 98.1 90.
Slide 12: ERGO International
ERGO ERGO International Combined ratio % Gross premiums written in Q1 2020 (Q1 2019) €m Property-casualty Life 95.6 94.5 95.4 95.0 94.8 95.2 702 (730) 170 (170) 93.3 91.8 TOTAL €1,295m (€1,300m) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Health 2018 2018 2018 2019 2019 2019 2019 2020 423 (400) 2020 P-C Q1 Q1 Life Q1 Q
Slide 13: Reinsurance
Reinsurance 3 Image: John Lund Getty Images
Slide 14: Reinsurance Life and Health
Reinsurance Reinsurance Life and Health Gross premiums written €m Major result drivers €m Q1 2019 2,896 Q1 2020 Q1 2019 Technical result 14 85 –71 Foreign exchange 67 Non-technical result 52 104 –52 Divestments/investments 0 thereof investment result 226 243 –17 Organic change 117 Other –58 –9 –50
Slide 15: Reinsurance Property-casualty
Reinsurance Reinsurance Property-casualty Gross premiums written €m Major result drivers €m Q1 2019 5,484 Q1 2020 Q1 2019 Technical result –74 418 –492 Foreign exchange 113 Non-technical result 306 26 280 Divestments/investments 0 thereof investment result 703 398 306 Organic change 559 Other –91
Slide 16: Reinsurance Property-casualty – Combined ratio
Reinsurance Reinsurance Property-casualty – Combined ratio % ◼ Basic losses ◼ Major losses ◼ Expense ratio 2018 99.4 53.6 11.6 34.2 111.6 105.1 2019 100.2 51.4 15.2 33.6 102.0 106.0 97.3 103.9 Q1 2020 106.0 54.7 21.1 30.1 100.7 86.9 Major Reserve Normalised losses Nat cat Man-made releases1 combined
Slide 17: Munich Re substantially expands premium volume, further improving portfolio profitability
Reinsurance – April renewals 2020 Munich Re substantially expands premium volume, further improving portfolio profitability April renewals 2020 % 100 –10.8 89.2 +13.7 +22.8 125.7 ▪ Positive pricing dynamics €m 1,668 –181 1,488 +229 +381 2,098 continue – particularly in regions and lines of Change in
Slide 18: Outlook
Outlook 4 Image: Klaus Ohlenschläger / dpa Picture Alliance
Slide 19: Outlook 2020
Outlook 2020 Group Gross premiums written Net result Return on investment1 ~€52bn 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 resul
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