Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München — Q4 2021 Earnings Presentation
96 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, Feb 23, 2022
Slide 1: The Munich Re Group – Analysts' and Investors' Call 2022
The Munich Re Group Analysts’ and Investors’ Call 2022 23 February 2022 Please note: Presentation based on 2021 preliminary figures Analysts’ and Investors’ Call 2022 23 February 2022 1
Slide 2: Agenda
Analysts’ and Investors’ Call 2022 Agenda 01 Munich Re 02 Group finance and risk 03 Additional information Analysts’ and Investors’ Call 2022 23 February 2022 2
Slide 3: Munich Re
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Slide 4: Munich Re delivers in 2021, successfully mastering multiple challenges
Munich Re delivers in 2021, successfully mastering multiple challenges Financial performance Capital repatriation Exceeding guidance with a net Attractive pay-out to our shareholders – income of €2.9bn – strong underlying DPS lifted to €111, resuming €1bn performance across all segments share buy-ba
Slide 5: Strong results in 2021 paving the way to deliver on Ambition 2025
Strong results in 2021 paving the way to deliver on Ambition 2025 Ambition Achievements 2025 in 2021 Profitability well above ROE 12–14% 12.6% cost of capital and above plan EPS growth ≥5%1 +4.7%2 Delivering in a challenging year DPS Shareholders participate above plan growth ≥5%1 +12.2%3 in strong
Slide 6: ERGO growing sustainably and increasing profit contribution
ERGO growing sustainably and increasing profit contribution Achievements in 2021 Growing business across all segments Ambition 2025 Germany ▪ Ongoing excellent new business Sustainable RoE Cost and customer focus development (+13% APE) paying off ▪ Strong premium development across all segments supp
Slide 7: Effective German life in-force management
Effective German life in-force management: Transformation on track – strong earnings contribution – strategic opportunity Decision for internal run-off proven to be Dividend cash flow from Strong contribution to earnings, in the best interest of all stakeholders German life back book cash generation
Slide 8: Strong profitable growth across all segments
Strong profitable growth across all segments Supported by new products and hybrid customer model GWP growth in 2021 Main drivers Excellent growth above market while maintaining high profitability level, mainly in Property-casualty ▪ Retail business, e.g. strong motor renewal and increased demand for
Slide 9: Reinsurance benefitting from market cycle while shaping new business opportunities
Reinsurance benefitting from market cycle while shaping new business opportunities Achievements in 2021 Shaping new business Ambition 2025 opportunities ▪ Digitalised business models with Sustainable RoE more than 50 initiatives within six Scaling on solid foundation focus domains1 ▪ Leveraging on m
Slide 10: Continuation of market hardening in P-C reinsurance
Continuation of market hardening in P-C reinsurance Profitable business growth in January renewals Renewals January Market drivers 2019–2021 renewals 2022 ▪ High loss experience in 2021, especially in nat cat, increased risk % awareness of cedants … 2.3 ▪ … resulting in flight to quality and upward
Slide 11: Cyber business: Sustainable profitability and long-term growth
Cyber business: Sustainable profitability and long-term growth – substantial rate increases in original market Gross premiums written US$ m 1,472 ▪ Ongoing hardening market – Munich Re continues to provide capacity in a cyber market with decreased offering and further increasing demand ▪ Cyber risk
Slide 12: High costs from natural catastrophes enforced by surge in inflation
High costs from natural catastrophes enforced by surge in inflation – Munich Re managing volatility to delivery Consumer price inflation (CPI) 1 8% Germany USA ▪ Strong recovery-driven demand, supply shortages, energy prices and base effects have shifted up CPI 6 Inflation pushed substantially … 4 t
Slide 13: Inflation surge well manageable due to diversification, reserve prudency and hedges
Inflation surge well manageable due to diversified book of 1 business, reserve prudency and hedges in the investment portfolio CPI with limited significance in insurance business, other drivers much more relevant Prudency ▪ Prudent setting of claims reserves allows to buffers adverse Existing develo
Slide 14: Managing nat cat-driven short-term accounting volatility
Managing nat cat-driven short-term 2 accounting volatility ▪ Dampening IFRS P&L ▪ Strong balance sheet ▪ Supporting volatility through earnings ▪ Stable retro capital Increased dividend, Earnings / diversification management resumed share buy- programme capital position ▪ HGB earnings generally stra
Slide 15: Ambition 2025 paves the way to reduce earnings volatility
Ambition 2025 paves the way to reduce 2 earnings volatility Relative earnings contribution by 2025 Scale Expansion of core Preference for organic growth Core Risk L/H Re ERGO P-C Re Solutions Leverage superior underwriting Create additional business More volatile Underlying business More stable Mone
Slide 16: Munich Re climate approach following a clear path
Munich Re climate approach following a clear path Climate Financed Insured Own ambition emissions emissions emissions Clear roadmap Ambitious interim targets to Strict underwriting guidelines Continuously improving to reduce CO2 achieve net-zero investment regulate phase-out of oil/gas operational e
Slide 17: Delivery on climate ambition through emission reductions
Delivery on climate ambition through emission reductions Major achievements in 2021 Climate Decarbonisation ambition 2025 achievements in 2021 Emissions Emissions ▪ Green bond investments: €2.2bn Total1 –25% to –29% Total –31% ▪ Forest investments4: €1.1bn Assets Thermal coal –35% Thermal coal –47%
Slide 18: Gender ambition 2025 – Approaching the targeted 40%
Gender ambition 2025 – Approaching the targeted 40% women in leadership roles Ambition Achievements Gender as a focus topic in 2021 2025 in 2021 (2020) ▪ Gender diversity a top priority for the Share of women 40% 37.8% Munich Re Group at management level ▪ New Group-wide approach regarding (35.1%) s
Slide 19: Our commitment to succeed
Our commitment to succeed Leading total shareholder return (TSR) TSR 1.1.2018–31.12.20211 % Profitability 85.3 RoE clearly above 71.6 cost of capital 70.1 54.3 Growth 30.9 30.9 27.7 Strong premium growth while improving margins –3.7 Capital repatriation Attractive dividend yield and share buy-back P
Slide 20: Outlook 2022
Outlook 2022 On the way to achieving our Group Ambition 2025 Group Gross premiums written Net result Return on investment ~ €61bn ~ €3.3bn >2.5% Combined ratio ERGO Gross premiums written Net result P-C Germany International ~ €18.5bn ~ €0.6bn1 ~ 91% ~ 92% Combined ratio Technical result, incl. fee
Slide 21: Group finance and risk
Group finance and risk
Slide 22: Financial results 2021
Group finance and risk Financial results 2021 Strong earnings and capitalisation, reserves strengthened in all segments ▪ Substantial business growth and pleasing underlying profitability offset IFRS net income above-average major losses, including COVID-19 claims IFRS €2.9bn (€1.2bn) ▪ ERGO: Strong
Slide 23: FY 2021 COVID-19-related financial impact
Group finance and risk – COVID-19 FY 2021 COVID-19-related financial impact Majority of claims in 2021 driven by L&H reinsurance (€785m) IFRS €m Q4 2021: Provisions increased by €320m Re- ~ +€0.3bn ~€4.4bn ▪ P-C: Small increase of €5m; 60% of the accumulated insurance ~ +€0.7bn Contingency 1,846 (pr
Slide 24: Result Q4 2021
Group finance and risk Result Q4 2021 Major drivers IFRS Net income Reinsurance: €734m ERGO: €137m P-C: Profitable business L&H: Strong result given COVID-19 Strong operating performance in P-C €871m growth, strengthened reserve prudency, high investment claims (€315m, incl. prudent IBNR), driven by
Slide 25: Investment result
Group finance and risk Investment result Resilient performance IFRS 2021 % –0.3 ▪ Running yield 1.3 –0.3 2.8 Attrition of ~10 bps due to 2.4 –0.2 low interest rates expected to persist in 2022 ▪ Disposal gains Mainly driven by tactical asset allocation, ZZR financing, and outsourcing 2020 % 1.5 0.0
Slide 26: ERGO – IFRS key financials 2021
Group finance and risk ERGO – IFRS key financials 2021 Continued strong result and high growth momentum in all segments IFRS ERGO L&H Germany P-C Germany International GWP €18.2bn €9.2bn (€9.0bn) €3.9bn (€3.7bn) €5.1bn (€4.9bn) (€17.6bn) High growth in new life and health book, recovery in travel in
Slide 27: Reinsurance – IFRS key financials 2021
Group finance and risk Reinsurance – IFRS key financials 2021 Strong profitable growth in P-C, continued COVID-19-related losses in L&H IFRS Reinsurance P-C reinsurance L&H reinsurance GWP €41.4bn €28.8bn (€24.6bn) €12.6bn (€12.7bn) (€37.3bn) Strong organic growth in almost all lines of business, Gr
Slide 28: Risk Solutions
Group finance and risk Risk Solutions Strong organic growth and increased profitability ahead of plan trajectory IFRS Gross premiums written ▪ Strong organic growth across all units, taking advantage of profitable business opportunities €bn in a hardening market +18% ▪ MR Specialty Insurance: Succes
Slide 29: Overall reserve prudency further strengthened
Group finance and risk Overall reserve prudency further strengthened Protect balance sheet against unexpected developments IFRS Managing industry hot spots Munich Re measures Ongoing reserve releases1 COVID-19 Loss complex affects multiple Thorough claims assessment; lines with challenging loss soli
Slide 30: P-C reinsurance: outlier expectation of ~13% for 2022
Group finance and risk P-C reinsurance: Shift from basic to major losses results in outlier expectation of ~13% for 2022 (previously ~12%) IFRS Softening market Hardening market Business Higher (market) shares lead to increased Munich Re shares P-C Re premium growth »ILLUSTRATION« growth in individu
Slide 31: Solvency II ratio
Group finance and risk Solvency II ratio Sound capitalisation supports growth and attractive capital repatriation Economic Development of Solvency II ratio SII sensitivities % % 244 245 237 235 237 227 220 208 219 225 Optimal range 217 216 175 200 Interest rates Equity markets Spread Spread CORP Atl
Slide 32: Continuously increasing share of insurance risks
Group finance and risk Continuously increasing share of insurance risks Overall balanced risk profile Economic SCR composition of investment and insurance risks % Investment risks 49 48 49 46 Largely unchanged risk appetite, despite 53 pressure on investment returns in the persisting low-interest-ra
Slide 33: SCR development
Group finance and risk SCR development Increase driven by business growth and currency effects Economic Total SCR (incl. diversification) €bn Market Credit ▪ Higher market risk mainly due to 20.5 Investment 10.7 11.5 exposure- and market-driven 19.2 risks +0.8 change in equity holdings +1.4 5.2 4.3
Slide 34: German GAAP (HGB) result 2021 supported by one-offs
Group finance and risk German GAAP (HGB) result 2021 supported by one-offs Capital repatriation well-funded Capital €bn HGB result 2020 Average –1.3 –0.7 2.5 4.0 €bn 3.2 2012–2021 Underwriting Equalisation provision +4.1 4.1 7.0 result €bn Investment 10.0 –1.5 result 7.9 4.3 –1.4 Other –1.7 –2.1 – H
Slide 35: Changes in the setting of equalisation provision increase capital flexibility
Group finance and risk Changes in the setting of equalisation provision increase capital flexibility Capital Equalisation provision (EQP) Drivers of ▪ Munich Re has reviewed and refined the mapping to lines of business for €bn one-off the calculation of the EQP release ▪ Non-mandatory lines of busin
Slide 36: Introduction of IFRS 9/17 – More stringent profitability measurement
Group finance and risk Introduction of IFRS 9/17 – More stringent profitability measurement of insurance contracts, including adjustment for risk Overall good progress Implications of IFRS 17 implementation in Munich Re Group in 2021 ▪ Higher transparency in reporting, e.g. through CSM, showing unea
Slide 37: First-time disclosure of taxonomy-eligible/-aligned investments and liabilities
Group finance and risk First-time disclosure of taxonomy-eligible/-aligned investments and liabilities Gross premiums 100% 100% Total investments written non-life1 €37.3bn €152.8bn less government bonds3 Non-eligible business Approx. Approx. Not eligible investments ▪ Activities not contributing to
Slide 38: Additional information
Additional information
Slide 39: Segment income statement Q4 2021
Additional information: Group finance and risk Segment income statement Q4 2021 €m Reinsurance Reinsurance ERGO ERGO ERGO Total L/H1 P-C L/H Germany P-C Germany International Q4 2021 Gross premiums written 3,196 7,311 2,366 769 1,253 14,894 Net earned premiums 2,962 7,325 2,372 985 1,192 14,836 Inco
Slide 40: Segment income statement 2021
Additional information: Group finance and risk Segment income statement 2021 €m Reinsurance Reinsurance ERGO ERGO ERGO Total L/H1 P-C L/H Germany P-C Germany International 2021 Gross premiums written 12,561 28,793 9,203 3,919 5,092 59,567 Net earned premiums 11,464 26,071 9,173 3,764 4,730 55,202 In
Slide 41: Actual vs. analysts' consensus
Additional information: Group finance and risk Actual vs. analysts’ consensus Operating result – Actual vs. analysts’ consensus 1 KPIs – Actual vs. analysts’ consensus 1 €m €m Q4 2021 Consensus Delta Q4 2021 Consensus Impact2 Property-casualty reinsurance 743 963 –220 Combined ratio 96.4% 93.3% –227
Slide 42: Capital position
Additional information: Group finance and risk – Capitalisation Capital position Equity Capitalisation €m €bn Equity 31.12.2020 29,994 Change in Q4 15.1 15.0 14.7 13.2 Consolidated result 2,932 871 12.0 Changes 0.3 0.3 0.3 0.3 Dividend –1,373 0 0.3 3.8 5.0 5.0 5.1 Unrealised gains/losses –2,162 –550
Slide 43: Premium development
Additional information: Group finance and risk Premium development Gross premiums written Segmental breakdown €m €m 2020 54,890 Foreign Total –716 exchange €59.6bn Divestments/ investments –34 Property-casualty reinsurance 28,793 (48%)(p 17.0%) Organic change 5,427 Life and health reinsurance 12,561
Slide 44: Very strong reserve position
Additional information: Group finance and risk Very strong reserve position Actual basic losses continue to be consistently below actuarial expectations Reinsurance group – Comparison of incremental expected losses with actual reported losses 1 €m By exposure year By line of business 10,000 10,000 A
Slide 45: Once again high positive run-off result
Additional information: Group finance and risk Once again high positive run-off result, despite anticipated additional COVID-19 losses in accident year 2020 Ultimate losses1 – Favourable actual vs. expected comparison facilitates ultimate reductions for prior years €m Accident year (AY) ≤2011 2012 2
Slide 46: Response to benign emergence of basic losses
Additional information: Group finance and risk – Reserves – Property-casualty – Reinsurance Response to benign emergence of basic losses in line with considered judgement Actual vs. Changes in Business expected projection rationale Property Particularly favourable loss development leads to releases
Slide 47: Property-casualty provision for outstanding claims
Additional information: Group finance and risk – Non-life reinsurance reserves Property-casualty provision for outstanding claims By line of business By maturity % % Total Total €59.1bn €59.1bn Third-party liability 37 (37) Marine 3 (3) 0–1 years 33 (34) 5–10 years 13 (13) Motor 20 (21) Credit 3 (3)
Slide 48: Asbestos and environmental survival ratio
Additional information: Group finance and risk – Reserves Asbestos and environmental survival ratio Munich Re Net definitive as at 31 December 20211 €m Asbestos Environmental A&E total Paid 3,381 1,014 4,396 Case reserves 422 139 561 IBNR 530 184 714 Total reserves 952 323 1,275 3-year average annua
Slide 49: Investment result
Additional information: Investments Investment result €m Q4 2021 Return1 2021 Return1 2020 Return1 Regular income 1,437 2.3% 6,017 2.4% 6,273 2.5% Write-ups/write-downs –88 –0.1% –505 –0.2% –1,957 –0.8% Disposal gains/losses 691 1.1% 3,182 1.3% 3,698 1.5% Derivatives2 –377 –0.6% –774 –0.3% 74 0.0% O
Slide 50: Return on investment by asset class and segment
Additional information: Investments Return on investment by asset class and segment 2021 %1 Regular Write-ups/ Disposal Extraord. Other ᴓ Market income -downs result derivatives result inc./exp. RoI value (€m) Afs fixed-income 1.8 –0.0 0.7 0.0 0.0 2.5 136,947 Afs non-fixed-income 4.6 –1.6 6.1 0.0 0.
Slide 51: Investment portfolio
Additional information: Investments Investment portfolio Investment portfolio Fixed-interest securities1 (%) 31.12.2021 31.12.2020 % Governments/semi-governments 65 64 Pfandbriefe/covered bonds 9 10 Cash/other 0 1 Corporates 19 19 Total Banks 3 3 €257bn Structured products 4 4 Loans1 Governments/sem
Slide 52: Fixed-income portfolio
Additional information: Investments Fixed-income portfolio Total Fixed-income portfolio % Total €209bn Governments/semi-governments 55 (55) Loans to policyholders/mortgage loans 4 (4) Pfandbriefe/covered bonds 16 (18) Structured products 3 (2) Corporates 14 (14) Bank bonds 2 (2) Cash/other 6 (5) App
Slide 53: Fixed-income portfolio
Additional information: Investments Fixed-income portfolio Total Rating structure Regional breakdown % % Without With Total policyholder 31.12.2021 31.12.2020 AAA 42 (41) BB 4 (3) participation AA 23 (24) <BB 1 (1) Germany 4.4 19.1 23.5 25.9 Total US 15.8 2.2 18.0 15.7 €209.1bn A 13 (12) NR1 5 (5) F
Slide 54: Fixed-income portfolio – Governments/semi-governments
Additional information: Investments Fixed-income portfolio Governments/semi-governments Rating structure Regional breakdown % % Without With Total policyholder 31.12.2021 31.12.2020 AAA 48 (44) BB 2 (2) participation AA 29 (32) <BB 0 (0) Germany 3.8 18.1 21.9 24.0 Total US 18.2 1.6 19.8 16.9 €114.1b
Slide 55: Fixed-income portfolio – Pfandbriefe/covered bonds
Additional information: Investments Fixed-income portfolio Pfandbriefe/covered bonds Rating structure Regional breakdown % % 31.12.2021 31.12.2020 Germany 30.0 32.2 AAA 75 (75) BBB 0 (1) France 22.4 20.9 UK 10.5 10.2 Total AA 23 (22) NR 1 (1) Netherlands 8.7 8.3 €33.5bn A 1 (2) Norway 5.5 5.7 Sweden
Slide 56: Fixed-income portfolio – Corporate bonds
Additional information: Investments Fixed-income portfolio Corporate bonds (excluding bank bonds) Rating structure Sector breakdown % % 31.12.2021 31.12.2020 AAA 2 (2) BB 18 (17) Industrial goods and services 14.1 12.9 Total AA 5 (5) <BB 5 (3) Utilities 13.9 13.9 €30.3bn A 19 (19) NR 0 (1) Oil and g
Slide 57: Fixed-income portfolio – Structured products
Additional information: Investments Fixed-income portfolio Structured products Structured products portfolio (at market values): Breakdown by rating and region €m Rating Region Market- AAA AA A BBB <BBB NR USA + RoW Europe Total to-par ABS Consumer-related ABS1 384 250 26 0 0 0 512 148 660 100% Corp
Slide 58: Fixed-income portfolio – Bank bonds
Additional information: Investments Fixed-income portfolio Bank bonds Rating structure Regional breakdown Total % % Senior Sub- Loss- bonds ordinated bearing 31.12.2021 31.12.2020 US 33.4 3.4 0.7 37.5 31.6 AAA 0 (1) BB 3 (4) Canada 11.9 0.0 0.0 11.9 8.9 Total AA 9 (16) <BB 1 (0) UK 7.3 0.5 0.2 8.0 1
Slide 59: Sensitivities to interest rates, spreads and equities
Additional information: 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 +8.9 +4.4 –8.1 –15.3 Change in on-balance-sheet reserves, net +2.5 +1.2 –2.3 –4.4 Ch
Slide 60: On- and off-balance-sheet reserves
Additional information: Investments On- and off-balance-sheet reserves €m 31.12. 31.12. 30.9. 31.12. p 2019 2020 2021 2021 in Q4 Market value of investments 247,310 252,789 252,883 257,485 4,602 Total reserves 33,120 37,269 29,930 30,357 427 On-balance-sheet reserves Fixed-interest securities 10,738
Slide 61: On- and off-balance-sheet reserves
Additional information: Investments On- and off-balance-sheet reserves €m On-balance-sheet reserves Off-balance-sheet reserves 1 Total reserves (gross) 13,172 17,185 Provision for deferred premium refunds –5,409 –8,115 Deferred tax –1,848 –2,496 Minority interests –10 – Consolidation and currency ef
Slide 62: Breakdown of SCR
Additional information: Group finance and risk – Risk management – Risk disclosure Breakdown of SCR Increase driven by business growth and currency effects SCR by risk category €bn Group RI ERGO Div. 2020 2021 Delta 2021 2021 2021 Property-casualty 9.4 11.2 1.8 11.0 0.6 –0.5 Business growth reinforc
Slide 63: Property-casualty risk
Additional information: Group finance and risk – Risk management – Solvency II Property-casualty risk Growth in almost all scenarios facilitated by excellent risk-bearing capacity Top scenario exposures of the Group (net of retrocession) – AggVaR1 €bn 9 2021 2020 Top exposures €bn 2021 2020 1 Atlant
Slide 64: Life and health risk
Additional information: Group finance and risk – Risk management Life and health risk Life and health – VaR1 €bn 2021 Overall increase driven by Longevity 1.9 1.8 2020 Reinsurance ▪ Business development, especially US mortality Mortality 5.0 and UK longevity business 4.8 ▪ Higher interest rates offs
Slide 65: Market risk
Additional information: Group finance and risk – Risk management Market risk SCR by risk category €bn Group RI ERGO Div. 2020 2021 2021 2021 2021 Active build-up of equity exposure, as well as positive stock market Equity 4.1 5.7 3.0 2.8 –0.2 performance Higher interest rates especially beneficial f
Slide 66: Market risk – asset-liability mismatch
Additional information: Group finance and risk – Risk management Market risk Asset-liability mismatch DV011 Portfolio duration €m Net DV01 Assets Liabilities Assets Liabilities Munich Re2 8 (5) 171 (190) 163 (184) 8.3 (8.9) 8.4 (9.3) Reinsurance 8 (11) 46 (49) 38 (38) 6.0 (6.6) 6.4 (6.7) ERGO 0 (–6)
Slide 67: Sensitivities of SII ratio
Additional information: Group finance and risk – Risk management Sensitivities of SII ratio Ratio as at 31.12.2021 227 Interest rate +50bps1 235 Interest rate –50bps1 217 Spread +50bps GOV 219 Spread +50bps CORP 225 Equity markets +30% 237 Equity markets –30% 216 FX –20% 222 Inflation +100bps2 227 A
Slide 68: Preliminary SII ratios
Additional information: Group finance and risk – Risk management Preliminary SII ratios Munich Re and solo entities1 Internal model EOF SCR S-II Ratio S-II Ratio (without TM2) (without TM2) (without TM2) (incl. TM2) €bn Munich Re 46.6 20.5 227% 254% Munich Reinsurance Company 47.0 20.5 229% 256% Mun
Slide 69: Strategy of internal German life back book run-off on track
Additional information: ERGO Strategy of internal German life back book run-off on track Start of “special unit” Ramp-up of new IT platform Outlook ▪ Creation of model for a ▪ Contract to build multi-tenant platform ▪ Completing sustainable and holistic solution with IBM IT migration to mitigate adm
Slide 70: ERGO Life and Health Germany
Additional information: ERGO ERGO Life and Health Germany Gross premiums written Major result drivers €m €m Q4 2021 Q4 2020 p 2021 2020 p 2020 9,030 Technical result 64 26 38 349 353 –4 Foreign exchange 1 Non-technical result –163 147 –310 –147 95 –242 Divestments/investments 0 thereof investment re
Slide 71: ERGO Life and Health Germany – key figures
Additional information: ERGO ERGO Life and Health Germany Key figures Life Germany Health Germany GWP – Market view3 % €bn Key figures1 2019 2020 2021 Comprehensive insurance – ERGO is number 2 in German market Reinvestment yield 1.8 1.9 1.9 5.9 3.8 Average yield 2.9 2.7 2.4 3.0 3.0 2.5 Average guar
Slide 72: ERGO Property-casualty Germany
Additional information: ERGO ERGO Property-casualty Germany Gross premiums written Major result drivers €m €m Q4 2021 Q4 2020 p 2021 2020 p 2020 3,677 Technical result 146 57 89 302 294 8 Foreign exchange 4 Non-technical result –5 –6 0 51 –39 91 Divestments/investments 0 thereof investment result 26
Slide 73: ERGO Property-casualty Germany – combined ratio
Additional information: ERGO ERGO Property-casualty Germany Combined ratio Gross premiums written in 2021 (2020) % €m ◼ Loss ratio ◼ Expense ratio 2019 92.3 60.3 32.0 2020 92.4 61.9 30.5 Total €3,919m 2021 92.4 62.6 29.8 (€3,677m) Q4 2021 87.6 57.1 30.5 94.2 95.6 Motor 728 (707) Legal protection 415
Slide 74: ERGO International
Additional information: ERGO ERGO International Gross premiums written Major result drivers €m €m Q4 2021 Q4 2020 p 2021 2020 p 2020 4,861 Technical result 108 13 94 313 202 111 Foreign exchange –41 Non-technical result –39 76 –115 –47 96 –143 Divestments/investments –34 thereof investment result 70
Slide 75: ERGO International – combined ratio
Additional information: ERGO ERGO International Combined ratio Gross written premiums in 2021 (2020) % €m 94.8 95.2 93.8 Property-casualty 2,939 (2,714) 92.5 93.0 92.2 92.3 93.1 Total 90.1 €5,092m Life 614 (639) (€4,861m) Health 1,538 (1,509) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2020 2020 2020 2021
Slide 76: Strong position in biometric risk solutions
Additional information: Life and health reinsurance – Overview of major markets Strong position in biometric risk solutions supplemented by financially-motivated reinsurance and data-driven services Gross premium 25% Asia/MENA 24% USA ▪ Growing book of business building on strong ▪ Positioned amongs
Slide 77: Overweight in North America and traditional mortality risk
Additional information: Life and health reinsurance – Overview of major markets Overweight in North America and traditional mortality risk Present value of future claims USA 35% 90 10 Canada 15% 70 30 Asia / MENA 15% 40 60 Continental Europe 15% 40 60 UK / Ireland 15% 20 10 70 Mortality ~60% Austral
Slide 78: Life and health reinsurance
Additional information: Life and health reinsurance Life and health reinsurance Gross premiums written Major result drivers €m €m Q4 2021 Q4 2020 p 2021 2020 p 2020 12,707 Technical result 32 –109 140 –9 –78 69 Foreign exchange –68 Non-technical result 77 96 –19 353 303 50 Divestments/investments 0
Slide 79: Life and health reinsurance: IFRS result below expectations
Additional information: Life and health reinsurance IFRS result below expectations Technical result burdened by COVID-19 – strong development of fee income €m 2021 2020 Gross premiums written 12,561 12,707 Biometric risk 2021 Financially-motivated solutions reinsurance Mortality 6,354 6,293 €12.6bn
Slide 80: Biometric risk solutions
Additional information: Life and health reinsurance Biometric risk solutions Strong fundament supplemented by promising business opportunities Gross premiums written Portfolio €m –0.4% ▪ Leading footprint in all major markets 11,439 11,396 ▪ Strong new business proposition building on excellence in
Slide 81: Biometric risk solutions: longevity and financial markets
Additional information: Life and health reinsurance Biometric risk solutions Selective growth in longevity business – new products in financial markets Longevity Financial markets Successful growth path – Comprehensive market risk solutions maintaining prudent underwriting approach for the financial
Slide 82: Financially-motivated reinsurance
Additional information: Life and health reinsurance Financially-motivated reinsurance Strong demand prevails Gross premiums written Portfolio €m –8.1% ▪ Portfolio comprises ~240 transactions worldwide 1,268 1,165 ▪ 37 new treaties executed during 2021 ▪ New business opportunities arising mainly from
Slide 83: Property-casualty reinsurance
Additional information: Property-casualty reinsurance Property-casualty reinsurance Gross premiums written Major result drivers €m €m Q4 2021 Q4 2020 p 2021 2020 p 2020 24,615 Technical result 499 10 488 972 –171 1,144 Foreign exchange –612 Non-technical result 244 169 75 1,380 931 449 Divestments/i
Slide 84: Property-casualty reinsurance – combined ratio
Additional information: Property-casualty reinsurance Property-casualty reinsurance Combined ratio % ◼ Basic loss ratio ◼ Major loss ratio ◼ Expense ratio 2019 100.2 51.4 15.2 33.6 2020 105.6 53.9 20.8 30.9 111.6 112.2 112.8 2021 99.6 52.2 16.5 30.9 106.0 104.2 Q4 2021 96.4 48.9 13.7 33.8 98.9 99.9
Slide 85: Core P-C reinsurance: Retrocession
Additional information: Property-casualty reinsurance – Risk trading Core P-C reinsurance Retrocession – Continuity despite a difficult market Retrocession – Maximum in-force protection per nat cat scenario 1 €m Australia Cyclone US Windstorm NE US Windstorm SE ▪ Protection against peak risks mainly
Slide 86: Munich Re's maximum in-force nat cat protection
Additional information: Reinsurance Property-casualty – Risk trading Core P-C reinsurance Munich Re’s maximum in-force nat cat protection Nat cat protection before reinstatement premiums, as at January 2022 €m Risk swaps Sidecars 1,000 Indemnity retro 500 Australia US Windstorm Northeast US Windstor
Slide 87: Selective growth in firming market environment
Additional information: Property-casualty reinsurance Selective growth in firming market environment January renewals in 2022 % 100 –10.1 89.9 +10.4 +14.2 114.5 €m 12,929 –1,304 11,625 +1,343 +1,832 14,799 Change in premium +14.5% Thereof price movement1 ~ +0.7% Thereof change in exposure for our sh
Slide 88: January renewals in 2022
Additional information: Property-casualty reinsurance January renewals in 2022 Profitable growth across all regions and perils Volume change % Europe 30 Hardened prices, especially in loss-affected segments and regions (e.g. Germany), additional upward pressure due to low interest 20 North America r
Slide 89: Optimistic outlook for upcoming renewals
Additional information: Property-casualty reinsurance Optimistic outlook for upcoming renewals Total P-C book1 Treaty business % January April July Total Total Total Total €29bn €14.8bn €2.3bn €3.9bn Rest of Asia/ Rest of Asia/ Australia/ January 45 Asia/Pacific/Africa North America Pacific/Africa N
Slide 90: P-C reinsurance portfolio
Additional information: Property-casualty reinsurance – Portfolio P-C reinsurance portfolio Total P-C book2 Core P-C reinsurance2 % % Casualty 47 (48) Total Specialty3 8 (9) Total1 €22bn Other property 33 (32) €29bn Nat cat XL 11 (11) Risk Solutions Tailor-made solutions 19 (19) % Other traditional
Slide 91: Core P-C reinsurance portfolio
Additional information: Property-casualty reinsurance – Traditional portfolio Core P-C reinsurance portfolio % Casualty Specialty ▪ Well-balanced portfolio Casualty motor 27 (27) Credit 4 (4) ▪ Portfolio management Casualty ex motor 20 (21) Marine 3 (3) and higher share of Total Aviation 1 (2) propo
Slide 92: US casualty
Additional information: Property-casualty reinsurance US casualty Portfolio quality further improved, well-positioned for selective future growth Global traditional casualty book US traditional casualty book % % Total1 Total1 Total1 €8.3bn €3.2bn €3.2bn (€7.5bn) (€2.7bn) (€2.7bn) Workers’ comp 2 5 M
Slide 93: Changes to shares in circulation
Additional information: Shareholder information Changes to shares in circulation Acquisition of Retirement of Weighted average number of shares in circulation 31.12. own shares in own shares in 31.12. Shares (millions) 2020 2021 2021 2021 (millions) Shares in 140.1 – – 140.1 143.6 140.3 140.1 140.1
Slide 94: Financial calendar
Financial calendar 2022 Annual Report (Group), Annual Report (Company) Quarterly Statement Quarterly Statement as at 31 March 2022 as at 30 September 2022 17 MARCH 10 MAY 8 NOVEMBER 23 FEBRUARY 28 APRIL 9 AUGUST Annual General Meeting Half-Year Financial Report 2022 as at 30 June 2022 Balance sheet
Slide 95: For more information, please contact
For more 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: cfranziszi@munichre.com Ema
Slide 96: 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