39 slides from Munchener Ruckversicherungs-gesellschaft's earnings presentation, May 6, 2021
Slide 1: Quarterly statement as at 31 March 2021
Munich Re Group Quarterly statement as at 31 March 2021 6 May 2021 Christoph Jurecka Quarterly statement as at 31 March 2021 6 May 2021 1
Slide 2: Agenda
Quarterly statement as at 31 March 2021 Agenda 01 Munich Re 02 ERGO 03 Reinsurance 04 Outlook 05 Additional information Quarterly statement as at 31 March 2021 6 May 2021 2
Slide 3: Munich Re
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Slide 4: After solid start to the year, on track to achieve annual targets
Munich Re – Financial highlights Q1 2021 After solid start to the year, on track to achieve annual targets Munich Re Q1 2021 (Q1 2020) Net result Technical result Investment result Net result €m €m €m €589m (€221m) 1,920 589 Reinsurance: Good operational 480 1,691 development mitigates impact from m
Slide 5: Accumulated COVID-19-related financial impact for 2020 and Q1 2021
Munich Re Accumulated COVID-19-related financial impact for 2020 and Q1 2021 €m Q1 2021: Provisions increased by ~ €270m Re- ~ +€0.3bn ~€3.7bn ~€3.4bn ▪ Increase in P-C: ~ €100m (largely driven by insurance Contingency 1,744 contingency business), L&H: ~ €167m (pre-tax)1 Property/BI 1,003 ▪ P-C: 73%
Slide 6: Capital position
Munich Re – Capitalisation Capital position Equity Capitalisation €m €bn Equity 31.12.2020 15.1 15.6 29,994 13.2 Consolidated result 589 12.0 Changes 10.0 0.3 0.3 0.3 Dividend 0 0.3 0.3 3.8 5.0 5.1 Unrealised gains/losses –2,090 2.8 3.7 Exchange rates 641 Share buy-backs 0 Other 258 Equity 31.03.202
Slide 7: Investment portfolio
Munich Re – Investments Investment portfolio Investment portfolio1 Portfolio management % ▪ Increase of equity exposure due to investments Fixed-interest securities 54.8 (55.3) and favourable development of stock markets Loans 24.6 (25.6) ▪ Expansion of emerging-market and high-yield Total corporate
Slide 8: Investment result
Munich Re – Investments Investment result €m Q1 2021 Return1 Q1 2020 Return1 Regular income 1,429 2.3% 1,544 2.5% Write-ups/write-downs –171 –0.3% –1,459 –2.4% Disposal gains/losses 983 1.6% 377 0.6% Derivatives2 –368 –0.6% 1,600 2.6% Other income/expenses –182 –0.3% –142 –0.2% Investment result 1,6
Slide 9: ERGO
ERGO
Slide 10: ERGO Life and Health Germany
ERGO ERGO Life and Health Germany Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 2,315 Technical result 116 82 35 Foreign exchange –1 Non-technical result 20 –93 113 Divestments/investments 0 thereof investment result 898 839 59 Organic change –50 Other –42 17 –59 Q1 202
Slide 11: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 1,439 Technical result 51 59 –8 Foreign exchange –3 Non-technical result –15 –4 –11 Divestments/investments 0 thereof investment result 29 51 –22 Organic change 99 Other –12 –34 22 Q1 2021
Slide 12: ERGO Property-casualty Germany
ERGO ERGO Property-casualty Germany Combined ratio Gross premiums written in Q1 2021 (Q1 2020) % €m ◼ Loss ratio ◼ Expense ratio 2019 92.3 60.3 32.0 Total 2020 92.4 61.9 30.5 €1,535m (€1,439m) Q1 2021 94.2 63.0 31.2 98.1 Motor 383 (373) Legal protection 124 (123) 92.1 93.2 93.4 92.5 92.8 94.2 90.9 F
Slide 13: ERGO International
ERGO ERGO International Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 1,295 Technical result 51 36 15 Foreign exchange –24 Non-technical result 16 19 –3 Divestments/investments –2 thereof investment result 95 100 –5 Organic change 93 Other –7 –9 2 Q1 2021 1,362 Net resu
Slide 14: ERGO International
ERGO ERGO International Combined ratio Gross written premiums in Q1 2021 (Q1 2020) % €m 95.4 95.0 94.8 95.2 93.8 91.8 92.5 93.0 Property-casualty 763 (702) 90.1 Total €1,362m Life 153 (170) (€1,295m) Health 446 (423) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2019 2019 2019 2020 2020 2020 2020 2021 Q1 2021 P-C
Slide 15: Reinsurance
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Slide 16: Reinsurance Life and Health
Reinsurance Reinsurance Life and Health Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 3,079 Technical result –4 14 –18 Foreign exchange –123 Non-technical result 109 52 57 Divestments/investments 0 thereof investment result 245 226 19 Organic change 103 Other –53 –58 5
Slide 17: Reinsurance Property-casualty
Reinsurance Reinsurance Property-casualty Gross premiums written Major result drivers €m €m Q1 2021 Q1 2020 Q1 2020 6,156 Technical result 265 –74 339 Foreign exchange –399 Non-technical result 187 306 –118 Divestments/investments 0 thereof investment result 423 703 –281 Organic change 574 Other –
Slide 18: Reinsurance Property-casualty
Reinsurance Reinsurance Property-casualty Combined ratio % ◼ Basic losses ◼ Major losses ◼ Expense ratio 2019 100.2 51.4 15.2 33.6 111.6 112.2 2020 105.6 53.9 20.8 30.9 106.0 104.2 103.9 Q1 2021 98.9 54.4 15.5 28.9 97.3 99.9 98.9 Major Reserve Normalised 86.9 losses Nat cat Man-made releases1 combin
Slide 19: April renewals
Reinsurance April renewals Total property-casualty book1 Regional allocation of January renewals % % Europe 12 Worldwide 21 Total Asia/Pacific/Africa 45 Total €2bn €25bn Latin America 4 North America 18 Nat cat shares of renewable portfolio2 % Nat cat Other perils January renewals 42 January 11 89 A
Slide 20: Positive price dynamics continue
Reinsurance Positive price dynamics continue April renewals 2021 % 100 –6.2 93.8 +12.9 10.5 117.1 ▪ Positive price development €m 1,952 –122 1,830 +251 +205 2,286 overall, with varying trends depending on claims Change in premium +17.1% experience and market Thereof price movement1 ~ 2.4% situation
Slide 21: Regional allocation of July renewals
Reinsurance Regional allocation of July renewals Outlook ▪ Regional focus on North and Latin Total America, main renewal €3.6bn date in Australia ▪ Comparatively high nat cat share of ~ 22% North America 29% Worldwide 25% Latin America 11% Asia/Pacific/Africa 8% Australia 23% Europe 5% Quarterly sta
Slide 22: Outlook
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Slide 23: Outlook 2021
Outlook 2021 Group Gross written premium Net result Return on investment ~ €57bn ~ €2.8bn >2.5% (prev. ~ €55bn) ERGO Combined ratio Gross written premium Net result P-C Germany International ~ €17.5bn ~ €0.5bn ~ 92%1 ~ 93% Reinsurance Combined ratio Technical result, incl. fee Gross written premium
Slide 24: Additional information
Additional information
Slide 25: Segment income statement Q1 2021
Additional information: Group finance and risk Segment income statement Q1 2021 €m Reinsurance Reinsurance ERGO ERGO ERGO Total L/H1 P-C L/H Germany P-C Germany International Q1 2021 Gross premiums written 3,058 6,330 2,265 1,535 1,362 14,551 Net earned premiums 2,774 5,742 2,232 868 1,155 12,771 In
Slide 26: 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 Q1 2021 Consensus Delta Q1 2021 Consensus Impact2 Reinsurance Property-casualty 453 462 –9 Combined ratio 98.9% 99.9% 57 Rei
Slide 27: Premium development
Additional information: Group finance and risk Premium development Gross premiums written Segmental breakdown €m €m Q1 2020 14,284 Foreign Total –549 exchange €14.6bn Divestments/ investments –2 Reinsurance Property-casualty 6,330 (44%) ( 2.8%) Organic change 818 Reinsurance Life and Health 3,058 (
Slide 28: Development of combined ratio
Additional information: Reinsurance Development of combined ratio Combined ratio vs. basic losses % Combined ratio Basic loss ratio 102.0 100.7 105.1 103.9 111.6 106.0 112.2 104.2 98.9 97.3 99.9 86.9 55.7 55.3 50.4 54.8 50.1 54.7 46.4 54.7 54.1 55.6 51.4 54.4 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
Slide 29: Return on investment by asset class and segment
Additional information: Group finance and risk – Investments Return on investment by asset class and segment Q1 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 1.0 0.0 0.0 2.7 136,875 Afs non-fixe
Slide 30: Investment result – Reinsurance
Additional information: Investments Investment result – Reinsurance Reinsurance Life and Health €m Q1 2021 Return1 Q1 2020 Return1 Regular income 169 2.3% 196 2.7% Write-ups/write-downs –2 0.0% –18 –0.2% Disposal gains/losses 94 1.3% 25 0.3% Derivatives2 1 0.0% 33 0.5% Other income/expenses –18 –0.2
Slide 31: Investment result – ERGO
Additional information: Investments Investment result – ERGO Life and Health Germany €m Q1 2021 Return1 Q1 2020 Return1 Regular income 785 2.5% 822 2.6% Write-ups/write-downs –73 –0.2% –1,150 –3.7% Disposal gains/losses 565 1.8% 180 0.6% Derivatives2 –289 –0.9% 1,046 3.3% Other income/expenses –88 –
Slide 32: Investment result – ERGO
Additional information: Investments Investment result – ERGO International €m Q1 2021 Return1 Q1 2020 Return1 Regular income 72 1.4% 85 1.8% Write-ups/write-downs 11 0.2% –44 –0.9% Disposal gains/losses 39 0.8% 11 0.2% Derivatives2 –22 –0.4% 54 1.2% Other income/expenses –5 –0.1% –6 –0.1% Investment
Slide 33: 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 –15.4 Change in on-balance-sheet reserves, net +2.4 +1.2 –2.2 –4.2 Ch
Slide 34: On- and off-balance-sheet reserves
Additional information: Investments On- and off-balance-sheet reserves €m 31.12. 31.12. 31.12. 31.3. 2018 2019 2020 2021 in Q1 Market value of investments 231,876 247,310 252,789 248,707 –4,082 Total reserves 22,002 33,120 37,269 30,397 –6,872 On-balance-sheet reserves Fixed-interest securities 4,
Slide 35: 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) 13,256 17,142 Provision for deferred premium refunds –5,635 –9,311 Deferred tax –1,662 –2,278 Minority interests –10 – Consolidation and currency ef
Slide 36: 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 31.3. Shares (millions) 2020 Q1 2021 Q1 2021 2021 (millions) 148.7 Shares in 140.1 – – 140.1 143.6 140.3 1
Slide 37: Financial calendar 2021
Financial calendar 2021 Balance sheet media conference for 2020 financial statements Analysts’ and Investors’ call Half-year financial report as at 30 June 2021 Annual General Meeting 2021 25 FEBRUARY 28 APRIL 10 AUGUST 17 MARCH 6 MAY 9 NOVEMBER Quarterly statement as at 31 March 2021 Quarterly stat
Slide 38: For information, please contact
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: cfranziszi@munichre.com Email: c
Slide 39: 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