Munchener Ruckversicherungs-Gesellschaft AG · XETR:MUV2
Munchener Ruckversicherungs-Gesellschaft — Munich Re — Monte Carlo Rendez-Vous 2015
19 slides from Munchener Ruckversicherungs-Gesellschaft's conference presentation, Sep 13, 2015
Slide 1: Innovation – Translating ideas into business
Image: David Malan / Getty Images Innovation – Translating ideas into business Monte Carlo, 13 September 2015 Torsten Jeworrek, Thomas Blunck
Slide 2: Agenda
Agenda 1 Global reinsurance landscape Torsten Jeworrek 2 Munich Re strategy Torsten Jeworrek 3 Munich Re innovations Thomas Blunck 4 Key takeaways Torsten Jeworrek Innovation – Translating ideas into business, Monte Carlo 13 September 2015 2
Slide 3: Moderate reinsurance premium growth, stronger growth in primary insurance
Global reinsurance landscape Moderate reinsurance premium growth, stronger growth in primary insurance Global premium development from 2008–2014/2015e–2017e P-C RI: Ceded premiums 2014 €bn P-C RI and PI real growth rates (CAGR) Africa/Middle East RI PI (5%) 08–14 15–17 08–14 15–17 Latin America (7%)
Slide 4: Reinsurance capital growing, but not excessively compared to exposure
Global reinsurance landscape Reinsurance capital growing, but not excessively compared to exposure Dedicated reinsurance capital US$bn Reinsurance capital often overestimated Traditional RI capital The capitalisation of the reinsurance industry is 400 growing In 2014 about US$335bn was allocated
Slide 5: Changing reinsurance buying patterns following M&A in the (re-)insurance industry
Global reinsurance landscape Changing reinsurance buying patterns following M&A in the (re-)insurance industry Consolidation will continue Reasons Consequences Cost and capital synergies Business models are changing → better financials, more competitive, Companies are bringing together primary
Slide 6: Munich Re strategy in challenging market environment
Munich Re strategy Munich Re strategy in challenging market environment 1 Traditional reinsurance: 2 Risk Solutions generating strong 3 Innovations Tailor-made earnings solutions and cycle management Munich Re in excellent Excellent profitability; largely Tapping new profit pools by position t
Slide 7: Flexibility in managing the portfolio due to superior diversification
Munich Re strategy Flexibility in managing the portfolio due to superior diversification Total P-C book [%] Traditional [%] Risk Solutions [%] Risk Solutions Tailor-made Nat cat XL Casualty Other American Modern solutions 25 (24) 10 (12) 45 (40) 22 (19) 23 (23) 18 (18) Hartford TOTAL1 TOTAL Watkins
Slide 8: Future drivers of insurance demand
Munich Re strategy Future drivers of insurance demand Growth drivers in traditional (re-)insurance Innovation-driven demand Higher demand from emerging markets New risk landscape (e.g. cyber, supply chains, Large portion of non- or underinsured risks logistics, mobility) New forms of capital
Slide 9: Anticipating insurance demand due to excellent client access
Munich Re strategy Anticipating insurance demand due to excellent client access Industrial & commercial companies Strategic … … partnerships with primary SAP insurers SAS Risk Innovative ERGO Solutions solutions … … IBM Munich Re … … HP … Innovation – Translating ideas into business, Monte Carlo 13
Slide 10: Impulses for innovative business ideas: Munich Re present in innovation hubs
Munich Re strategy Impulses for innovative business ideas Munich Re present in innovation hubs around the world Princeton Berlin Internal incubator Partnership with Axel Cooperation with MIT Springer Plug & Play, focus on digital start-ups ERGO Digital Lab Munich Silicon Valley Cooperation
Slide 11: Munich Re emphasises innovation in four key development areas
Munich Re innovations Munich Re emphasises innovation in four key development areas New (re-)insurance products New business models Munich Re strives to position itself as leading Munich Re ensures its competitiveness (re-)insurance product developer for new against existing and new players by furth
Slide 12: Set of strategic business initiatives in each key development area
Munich Re innovations Set of strategic business initiatives in each key development area Cyber risks Automation and digitalization of Energy and technology (e.g. processes (e.g. automated technical performance underwriting platform) guarantees) White Labelling Non-damage BI New New busines
Slide 13: Cyber risks: Basket of cyber solutions according to clients' needs
Munich Re innovations Cyber risks: Basket of cyber solutions according to clients’ needs Single risk Portfolio Smaller standard Bespoke solutions Industry solutions cyber covers Treaty capacity Tailored for specific needs Coverage bespoke for a Standard market coverage Quota share of single
Slide 14: Long-term coverages at the cutting edge of technological developments
Munich Re innovations Long-term coverages at the cutting edge of technological developments New (re-)insurance Energy and technology products / risks Technical performance guarantees Current technologies Solar energy Wind energy Fuel cells LED Satellites Benefit for Munich Re’s clients F
Slide 15: Property Consulting helps clients to significantly improve portfolio quality
Munich Re innovations Property Consulting helps clients to significantly improve portfolio quality New risk-related services Property Consulting Benefit for Munich Re’s clients Tailor-made actuarial service for personal and commercial property lines Supports clients in improving portfolio qualit
Slide 16: Automated underwriting platforms as part of digitalisation of (re-)insurance
Munich Re innovations Automated underwriting platforms as important part of digitalisation of (re-)insurance industry New business models New broker platform in Germany Munich Re Automation Solution vers.diagnose Benefit for Munich Re’s clients Benefit for Munich Re’s clients Automated underwritin
Slide 17: Capital Partners addresses clients' demands beyond pure risk-transfer solutions
Munich Re innovations Capital Partners addresses clients’ demands beyond pure risk-transfer solutions New clients and demands Corporate finance / capital management: Capital Partners Benefit for Munich Re’s clients Looking at reinsurance and alternative capital solutions as a means for integrated
Slide 18: Key takeaways
Key takeaways 1 Global reinsurance landscape Market environment remains 2 Future (re-)insurance landscape New (re-)insurance demand will arise in traditional business, as well as from challenging new risk landscape and changing customer behaviour 3 Munich Re strategy Munich Re in excellent position
Slide 19: 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