20 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 17, 2023
Slide 1: Quarterly statement as at 31 March 2023
Munich Re Group Quarterly statement as at 31 March 2023 17 May 2023 Christoph Jurecka (CFO)
Slide 2: Agenda
Quarterly statement as at 31 March 2023 Agenda 01 02 03 04 05 Transition Munich Re ERGO Reinsurance to IFRS 9/17 Outlook Quarterly statement as at 31 March 2023 17 May 2023 2
Slide 3: Munich Re
01 Munich Re Source: Munich Re
Slide 4: Good start to the year with earnings above pro-rata guidance
Munich Re – Financial highlights Q1 2023 Good start to the year with earnings above pro-rata guidance Elevated result in prior-year quarter result due to lower major losses and FX Net result Total technical result Net financial result Operating result €m €m €m €m 1,809 1,863 1,768 1,864 1,480 1,271
Slide 5: Capital position
Munich Re – Capitalisation Capital position Equity Capitalisation €m €bn Equity 31.12.2022 27,245 10.7% 10.0% 9.9% Net result 1,271 Changes 0.3 0.3 0.3 Dividend 0 Senior debt 5.1 4.7 4.8 Share buy-backs –373 Subordinated debt 16.3 18.0 18.0 Unrealised gains/losses 749 CSM (after tax) Exchange rates
Slide 6: Investments
Munich Re – Investments Investments Q1 2023 Investment portfolio1 % Government/Semi-government bonds2 34 (34) Alternative investments 15 (15) Covered bonds/mortgage loans 15 (15) Equities3 4 (4) Total Corporate bonds 14 (14) Business-related participations 4 (4) €226bn Emerging-market government bon
Slide 7: Investment result
Munich Re – Investments Investment result €m Q1 2023 Return1 Q1 2022 Return1 Regular income 1,601 3.0% 1,415 2.3% Write-ups/write-downs –28 –0.1% –1,031 –1.7% Change in expected credit loss (ECL) –38 –0.1% 0 0.0% Disposal gains/losses 166 0.3% 936 1.5% Fair-value change 74 0.1% –926 –1.5% Other inco
Slide 8: ERGO
02 ERGO Source: Munich Re
Slide 9: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Key ▪ Higher CSM compared to prior year leads Total technical result messages to higher absolute release of CSM and €m accordingly a higher total technical result ▪ Total technical result mainly 258 reflects release of CSM and risk ▪ Net income (€41m) burdened by no
Slide 10: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Key ▪ Strong total technical result driven by very Total technical result messages low large losses and low acquisition costs €m due to seasonality of new business High total technical result and low 206 combined ratio in Q1 2023 ▪ Very high net result also driven
Slide 11: ERGO International
ERGO ERGO International Key ▪ Total technical result in P-C mainly Total technical result messages burdened mainly by large losses in Poland €m Combined ratio at Q1 of 95.4% ▪ Total technical result of L/H in line with (88.7%) impacted by: 97 90 expectation; CSM release dominated by ▪ Large losses i
Slide 12: Reinsurance
03 Reinsurance Source: Munich Re
Slide 13: Life and health reinsurance
Reinsurance Life and health reinsurance Key ▪ Strong total technical result above Total technical result messages pro-rata guidance €m ▪ Pleasing new business development, ▪ Release of CSM and RA in line especially in North America 320 with expectations 238 ▪ FinMoRe business performing well, yet ne
Slide 14: Property-casualty reinsurance
Reinsurance Property-casualty reinsurance Key ▪ Strong revenue growth of 13.1% vs. Q1 2022 Total technical result messages ▪ Combined ratio of 86.5% largely in line with guidance €m despite elevated major losses ▪ Increased combined ratio 1,350 driven by higher major loss ▪ Normalised combined ratio
Slide 15: April renewals – Continued trend of profitable growth
Reinsurance April renewals – Continued trend of profitable growth with sizeable improvements in terms and conditions Renewals 2019–2022 April % renewals 20231 Higher risk-adjusted pricing ▪ Individual price changes by line of business at a stable 2.3 portfolio composition amount to 3.9% – additional
Slide 16: Transition to IFRS 9/17
shansekala / iStockphoto / Getty Images 04 Transition to IFRS 9/17 Source: Munich Re
Slide 17: Net result outlook 2023 vs. FY 2022
Outlook Net result Outlook 2023 vs. FY 2022 €bn (after tax) 5.3 0.3 –0.7 –1.0 4.0 Net result 2022 Reinsurance: Reinsurance: P-C reinsurance: Prudent planning Operating Outlook 2023 (IFRS17 / IAS39 incl. Higher expected Elimination of Adjusting for positive impact approach to cover improvements, (IFR
Slide 18: Outlook
05 Outlook Source: Munich Re
Slide 19: Outlook 2023
Outlook 2023 Group Insurance revenue (gross) Net result Return on investment ~ €58bn ~ €4.0bn > 2.2% Combined ratio ERGO Insurance revenue (gross) Net result P-C Germany International ~ €19bn ~ €0.7bn ~ 89% ~ 90% Combined ratio Total technical result Reinsurance Insurance revenue (gross) Net result
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