Munchener Ruckversicherungs-gesellschaft Ag · XETR:MUV2
Munchener Ruckversicherungs-gesellschaft — Munich Re — Merger or Acquisition (March 2025)
10 slides from Munchener Ruckversicherungs-gesellschaft's merger presentation, Mar 20, 2025
Slide 1: Increase of stake in NEXT Insurance to 100%
Yuichiro Chino / Getty Images Munich Re Group Increase of stake in NEXT Insurance to 100% 20 March 2025
Slide 2: Key takeaways
Key takeaways ▪ Acquisition of NEXT Insurance marks a big step to enter the so far untapped and attractive SMB1 market in the US with a market premium volume of ~US$ 175bn ▪ ERGO to become the business owner, gaining access to a relevant, digital-based technology with entirely digital underwriting ▪
Slide 3: NEXT is an emerging leader in the US SMB insurance segment
NEXT is an emerging leader in the US SMB insurance segment Company background Shareholder structure prior to the acquisition Founded in 2016 ~700 employees ERGO Other shareholders, Headquartered in >600k customers ~29% including large Palo Alto, California insurance companies Leading technology-firs
Slide 4: Small businesses make up 99% of companies in the US, playing essential roles across the country
Small businesses make up 99% of companies in the US, playing essential roles across the country US commercial insurance market (2024) Main competitors Total US commercial insurance market US$ 400-410bn NEXT US NEXT’s competitive advantage US SMB (0-100 FTEs) market commercial market coverage ▪ Exclu
Slide 5: NEXT's product portfolio targets small business insurance and is evenly allocated across distribution channels
NEXT's product portfolio targets small business insurance and is evenly allocated across distribution channels Target customers Distribution channels Small businesses (<20 employees), Balanced mix of direct-to-business, representing 44% of the US GDP – embedded partnerships and agents NEXT is curren
Slide 6: NEXT has successfully scaled its business, while further improving key KPIs
NEXT has successfully scaled its business, while further improving key KPIs Top line1,2 Loss ratio2,4 Net result5 US$ m % US$ m 548 78 69 65 438 367 -94 -130 -211 20223 2023 2024 2022 2023 2024 2022 2023 2024 ▪ Growth above market based on a clearly ▪ Successfully enhanced underwriting over time ▪ I
Slide 7: NEXT strategically fits very well into Munich Re's interlocked business model – ERGO is its best owner
NEXT strategically fits very well into Munich Re's interlocked business model – ERGO is its best owner Strategic fit ▪ Attractive US SMB market that Munich Re does not currently have access to, providing a growth opportunity in a less volatile/less cyclical segment ▪ ERGO/Munich Re have a good under
Slide 8: In the medium term, NEXT will contribute significantly to ERGO's net result
In the medium term, NEXT will contribute significantly to ERGO’s net result Net result ambition ▪ NEXT will continue its growth outperformance over the next few years, Short-term based on its differentiated market positioning and its broad business model Break-even ▪ NEXT has achieved a competitive
Slide 9: NEXT will be fully integrated into ERGO's management structure
NEXT will be fully integrated into ERGO’s management structure ▪ ERGO will fully integrate NEXT into its management structure, with direct functional reporting lines ▪ NEXT will have the necessary leeway to further develop the digital business model and leverage Integration its positioning in the US
Slide 10: Disclaimer
Disclaimer This presentation was prepared exclusively for investors in financial instruments issued by Munich Re and 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