Good start to 2015 Quarterly financial statements as at 31 March 2015

Transcription

1 plainpicture/fstop/ralf Hiemisch Good start to May 205 Jörg Schneider Torsten Jeworrek

2 Agenda Financial reporting Q 205 Munich Re (Group) 2 ERGO 8 Munich Health 8 Reinsurance 22 Outlook 33 Backup 35 2

3 Munich Re (Group) Financial highlights Q 205 Good start to 205 Munich Re (Group) Q 205 NET RESULT 790m Good operating performance in core business supported by benign major losses in reinsurance SHAREHOLDERS' EQUITY 34.8bn (+4.7 vs. 3.2.) Sound capital position continuation of bn share buybacks until AGM 206 INVESTMENT RESULT RoI of 3.0 Solid return given low interest rates Economic ALM resulting in losses on derivatives, with usual portfolio turnover leading to disposal gains Reinsurance ERGO Munich Health NET RESULT 668m NET RESULT 99m NET RESULT 23m P-C LIFE P-C GERMANY REINSURANCE Combined ratio 92.3 Major-loss ratio 6.2 Technical result of 03m in line with pro-rata annual guidance Combined ratio 98. above-average major losses L/H GERMANY Pleasing result INTERNATIONAL Combined ratio 98.7 Combined ratio 00.8 PRIMARY INSURANCE Combined ratio

4 Munich Re (Group) Financial highlights Q 205 Net result Net result , Q 205 Q 204 Total Reinsurance Q2 Q3 Q4 Q Q2 Q3 Q4 Q ERGO Munich Health Technical result Investment result Other,27 92,992, Q 204 Q 205 Benign major losses in reinsurance Q 204:.0, Q 205: 6.2 Q 204 Q 205 Solid performance given ongoing decline of interest rates Q 204 Q 205 Low tax rate (6.0) and positive FX result ( 66m) Other non-operating result, goodwill impairments, net finance costs, taxes. 4

5 Munich Re (Group) Capitalisation IFRS capital position Equity Equity ,289 Consolidated result 790 Changes Dividend Unrealised gains/losses 2,035 Exchange rates,857 Share buy-backs 279 Other 6 Equity ,753 Capitalisation UNREALISED GAINS/LOSSES Fixed-interest securities,077m Non-fixed-interest securities 945m EXCHANGE RATES Positive FX contribution mainly driven by US$ bn Other debt includes bank borrowings of Munich Re and other strategic debt. 2 Strategic debt (senior, subordinated and other debt) divided by total capital (strategic debt + equity) Q 205 Senior and other debt Subordinated debt Equity Debt leverage 2 () 5

6 Munich Re (Group) Investment portfolio Investment portfolio Investment portfolio Portfolio management Land and buildings 2.3 (2.4) Shares, equity funds and participating interests (5.2) Miscellaneous (7.7) Loans 28.5 (29.2) TOTAL 25bn Fixed-interest securities 55.8 (55.5) Overall increase in market values driven by FX and lower interest rates Ongoing reduction of German government bonds to further improve diversification by cautiously increasing exposure in USA, Spain, Ireland and emerging markets Purchase of corporate bonds (esp. in USA) while reducing ABS/MBS and covered bonds Duration increase due to decline of interest rates and investments in higher maturities Portfolio duration 4 Assets Liabilities Net DV0 () Reinsurance 6.3 (5.6) 5.3 (4.6) 0. ERGO 8.7 (8.3) 9.6 (9.2) 2.0 Munich Re (Group) 7.8 (7.4) 7.9 (7.4) 20.9 Fair values as at ( ). 2 Net of hedges: 4.2 (4.3). 3 Deposits retained on assumed reinsurance, deposits with banks, investment funds (excl. equities), derivatives and investments in renewable energies and gold. 4 As at ( ). Net DV0: Sensitivity to parallel upward shift of yield curve by one basis point reflecting portfolio size. 6

7 Munich Re (Group) Investment result Investment result Investment result Q 205 Return Q 204 Return Regular income,80 3.0, Write-ups/write-downs Disposal gains/losses Derivatives Other income/expenses Investment result, , Total return month reinvestment yield Q Q Q Write-ups/ write-downs Fixed income Q 205 Q Equities 3 9 Real estate 9 6 Other 4 20 Disposal gains/losses Q 205 Q 204 Fixed income Equities Other 8 8 Derivatives Q 205 Q 204 Fixed income Equities Commodities 68 7 Other 2 42 Annualised return on quarterly weighted investments (market values) in. 2 Result from derivatives without regular income and other income/expenses. 3 Thereof interest-rate hedging ERGO: 209m/ 35m (gross/net). 7

8 Agenda Financial reporting Q 205 Munich Re (Group) ERGO Munich Health Reinsurance Outlook Backup 8

9 ERGO Premium development ERGO Premium development Gross premiums written Segmental breakdown Q 204 4,565 Foreign-exchange effects 2 L/H Germany 2,42 (53) ( 2.4) P-C Germany,93 (26) (.) Divestments/investments 0 Organic change 8 Q 205 4,585 International 980 (2) ( 7.2) Gross premiums written Regional breakdown Q 204 4,565 Life/Health Germany 59 Rest of world 22 (2) Germany 78 (79) Property-casualty Germany 3 International 66 Q 205 4,585 9

10 ERGO Life/Health Germany Key figures ERGO Life/Health Germany Key figures Net result Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q Q Technical result Investment result Other 27 88,57, Q 204 Q 205 Q 204 Q 205 Q 204 Q 205 Other non-operating result, goodwill impairments, net finance costs, taxes. 0

11 ERGO Life/Health Germany ERGO Life/Health Germany Highlights Q 205 vs. Q 204 Total premiums.4 Life: Reduced new business New life products making up ~20 of total new business (~86 of 3rd layer in German pension system) Difficult environment for regular premiums, slightly higher single premiums from short-term investment product MaxiZins Lower business in force; higher savings premiums resulting from unit-linked business Health: Decrease in comprehensive health cover; stable premium income in supplementary insurance Investment result 7.8 Losses on equity derivatives and write-downs High disposal gains on fixed-income securities and equities High contribution of interest-rate hedging 75m/ 7m (gross/net) Technical result 30.7 Slight improvement in life Decrease in health and direct business Net result Previous year impacted by restructuring of sales organisation Annual premium equivalent (APE = regular premiums +0 single premiums)

12 ERGO Property-casualty Germany Key figures ERGO Property-casualty Germany Key figures Net result Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q Q Technical result Investment result Other Q 204 Q 205 Q 204 Q 205 Q 204 Q 205 Other non-operating result, goodwill impairments, net finance costs, taxes. 2

13 ERGO Property-casualty Germany ERGO Property-casualty Germany Highlights Q 205 vs. Q 204 Gross premiums +. Technical result 4.7 Increase mainly driven by fire/property and liability Combined ratio increased to 98. due to seasonal effects and several large losses (e.g. storm Niklas) Outlook of ~93 remains unchanged Investment result 24. Other Lower derivative result and write-downs Improved FX result from investment funds Increased tax rate at.9 Other non-operating result, goodwill impairments, net finance costs, taxes. 3

14 ERGO Property-casualty Germany ERGO Property-casualty Germany Combined ratio Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Expense ratio Loss ratio Gross premiums written Other 03 Legal protection 5 Personal accident 68 Fire/property TOTAL,93m 74.6 Motor 336 Liability 249 Combined ratio Q 205 Motor Liability Fire/ prop. Personal acc. Legal prot. Other Total 4

15 ERGO International Key figures ERGO International Key figures Net result Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q Q Technical result Investment result Other Q 204 Q 205 Q 204 Q 205 Q 204 Q 205 Other non-operating result, goodwill impairments, net finance costs, taxes. 5

16 ERGO International property-casualty ERGO International property-casualty Combined ratio Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Expense ratio Loss ratio Gross premiums written Other 84 Legal protection 87 Greece 45 TOTAL 588m Poland 23 Turkey 59 Combined ratio Q 205 Poland Turkey Greece Legal protection Other Total 6

17 ERGO International ERGO International Highlights Q 205 vs. Q 204 Total premiums +5.6 Technical result 50.0 P-C: Higher premiums esp. in Poland, Turkey and UK; new company in Singapore Life: Higher sales of bancassurance products in Poland P-C: Exceptionally good Q 204, lower result mainly in Poland and UK in Q 205 Life: Positive one-off effect in Belgium in prior year (release of provision for profit participation) Investment result 47.2 Lower derivative result and write-downs Other Lower tax expenditure than in previous year, actual tax rate at 8.3 Local GAAP figures. 2 Other non-operating result, goodwill impairments, net finance costs, taxes. 7

18 Agenda Financial reporting Q 205 Munich Re (Group) ERGO Munich Health Reinsurance Outlook Backup 8

19 Munich Health Premium development Munich Health Premium development Gross premiums written Segmental breakdown Q 204,50 Foreign-exchange effects 85 Reinsurance,073 (74) ( 5.2) Primary insurance 370 (26) ( 0.3) Divestments/investments Organic change 32 Q 205,443 Gross premiums written Regional breakdown Q 204,50 Reinsurance 59 Asia and Australasia 2 (2) North America 53 (55) Primary insurance Q 205,443 Middle East/ Africa 0 (7) Europe 35 (36) DKV Luxembourg. 9

20 Munich Health Key figures Munich Health Key figures Net result Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q Q Technical result Investment result Other Q 204 Q Q 204 Q Q 204 Q 205 Other non-operating result, goodwill impairments, net finance costs, taxes. 20

21 Munich Health Munich Health Highlights Q 205 vs. Q 204 Gross premiums 3.9 Technical result Organic change 32m: Reduced share of large-volume deals, partly compensated for by organic growth in Middle East Positive FX effects ( 85m), mainly CAD Overall combined ratio up slightly to 00.4 due to change in cost allocation for administrative expenses in reinsurance Reinsurance combined ratio: 00.8 (+.) Primary insurance combined ratio: 98.0 (.4) Investment result Other Higher regular income (e.g. Daman) and disposal gains mainly driven by associated companies Low tax rate of 4.2 Other non-operating result, goodwill impairments, net finance costs, taxes. 2

22 Agenda Financial reporting Q 205 Munich Re (Group) ERGO Munich Health Reinsurance Outlook Backup 22

23 Reinsurance Premium development Reinsurance Premium development Gross premiums written Segmental breakdown Q 204 6,858 Foreign-exchange effects 73 Life 2,42 (34) ( 2.6) Property-casualty 4,598 (66) ( 5.0) Divestments/Investments 8 Organic change 597 Q 205 7,00 Gross premiums written Regional breakdown Q 204 6,858 Life 65 Property-casualty 27 Q 205 7,00 Middle East/ Africa 3 (3) Latin America 4 (5) Asia and Australasia 5 (8) North America 48 (43) Europe 30 (3) 23

24 Reinsurance Life Key figures Reinsurance Life Key figures Net result Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q Q Technical result Investment result Other Q 204 Q 205 Q 204 Q 205 Q 204 Q 205 Other non-operating result, goodwill impairments, net finance costs, taxes. 24

25 Reinsurance Life Reinsurance Life Highlights Q 205 vs. Q 204 Gross premiums 2.6 Technical result 6.9 Positive FX effects of 97m driven by the US and Canadian dollars Organic change 262m chiefly due to reduced share of large volume deals Investment result +2.2 Regular income increased due to exchange rate development Higher disposal gains but higher losses on equity derivatives Technical result in line with full-year ambition of 400m All main markets performed largely as expected Ongoing solid contributions from Canada, Continental Europe and the UK, development in Asia once again very pleasing No further negative news emerged from US mortality and Australian disability business Insurance-related investment result Other Negative impact 42m mainly from GmxB Positive currency impact m Tax rate: 4.5 Other non-operating result, goodwill impairments, net finance costs, taxes. 25

26 Reinsurance Property-casualty Key figures Reinsurance Property-casualty Key figures Net result Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q Q Technical result Investment result Other Q 204 Q 205 Q 204 Q 205 Q 204 Q 205 Other non-operating result, goodwill impairments, net finance costs, taxes. 26

27 Reinsurance Property-casualty Reinsurance Property-casualty Highlights Q 205 vs. Q 204 Gross premiums +5.0 Technical result 20.0 Significant positive FX effects 534m mainly driven by USD Negative organic change 335m resulting from motor (prior-year effect), fire and credit business Acquisition of Australian entity Calliden ( 8m) Again low level of major nat cat losses, but higher than prior year Reduced basic loss ratio driven by positive currency effects overcompensating renewal impact Reserve releases of 4 in line with expected run-rate Investment result 7. Other Regular income increased due to higher contribution of foreign exchange investments Derivative result decreased mainly due to equity and commodity derivatives, compensated by disposal gains Improved non-operating result driven by FX 77m Tax rate: 5.7 Other non-operating result, goodwill impairments, net finance costs, taxes. 27

28 Reinsurance Property-casualty Combined ratio Combined ratio Actual Q 205 Combined ratio Basic losses Nat cat losses Man-made losses Expense ratio Q Combined ratio Major losses Reserve releases basic losses Total Nat cat Man-made Q Avg. annual expectation ~2.0 ~8.5 ~3.5 -points Q 205 ~65 ~4.0 Q2 Q3 Q4 Q Q2 Q3 Q4 Q Normalised combined ratio: ~98. Mainly fire and motor; no corresponding sliding scale effects. 28

29 Reinsurance Property-casualty April renewals 205 April renewals Regional focus on Japan and USA, high nat cat share Total property-casualty book Regional allocation of April renewal Remaining business 25 Business up for January renewal 57 Rest 2 6 Europe 6 TOTAL.0bn Worldwide 29 Japan 2 TOTAL 7bn Latin America 6 Nat cat shares of renewable portfolio Nat cat Other perils North America 32 January 89 April Business up for July renewal 2 Business up for April renewal 6 July Total Gross premiums written. Economic view not fully comparable with IFRS figures. 2 Asia, Pacific and Africa. 29

30 Reinsurance Property-casualty April renewals 205 Market trends observed in January continuing in April renewals Market environment Abundant reinsurance capacity Continued softening of reinsurance prices, particularly in nat cat Primary markets with stable or improving rates Increasing commissions on proportional treaties Pressure on terms and conditions Munich Re portfolio Active portfolio management Consistent cycle management in all lines of business, particularly in property (e.g. nat cat), and realisation of new business opportunities Japan: Premium decline driven by strict cycle management overcompensated by taking advantage of single opportunities Competitors Supply Clients Demand Increased capital base of the (re)insurance sector Sustained presence of alternative capital High risk appetite Rising retention levels Change in demand towards tailor-made solutions and larger placements with major best-rated reinsurers Rising importance of long-standing relationship with reinsurer 30

31 Reinsurance Property-casualty April renewals 205 Moderate price decline reflects cycle management and realisation of profitable new business opportunities April renewals , ,085 Change in premium +3.9 Thereof price movement ~ 2.6 Thereof change in exposure for our share +6.5 Total renewable from April Cancelled Renewed Decrease in renewable New business Estimated outcome Portfolio profitability continues to comfortably meet cost of capital Price movement is calculated on a wing-to-wing basis (including cancelled and new business) and risk-adjusted (including claims inflation/loss trend and portfolio mix effects). 3

32 Reinsurance Property-casualty Outlook July renewals Outlook July renewals Regional focus on North and Latin America, main renewal date in Australia Regional allocation of July renewals North America 33 Worldwide 26 Outlook for July renewal Capacity and competition expected to remain high unless major losses occur Latin America TOTAL 2.bn Rest 6 Due to the relatively high nat cat share of ~2, overall pricing trend will largely depend on nat cat prices Australia 7 Europe 7 Clear focus on profitability to maintain portfolio quality Asia, Pacific and Africa. 32

33 Agenda Financial reporting Q 205 Munich Re (Group) ERGO Munich Health Reinsurance Outlook Backup 33

34 Outlook 205 Munich Re (Group) GROSS PREMIUMS WRITTEN 49 5bn (prev bn) RETURN ON INVESTMENT At least 3 NET RESULT 2.5 3bn Higher expectation due to FX Solid return given ongoing low-interest-rate environment RoRaC target of 5 after tax over the cycle to stand Reinsurance ERGO Munich Health COMBINED RATIO ~97 (prev. 98) COMBINED RATIO Germany: ~93 International: ~97 COMBINED RATIO ~99 NET RESULT NET RESULT NET RESULT at least 2bn ~ 500m 50 00m By segment: Reinsurance ~ 28bn, ERGO 6 6.5bn, Munich Health ~ 5.5bn. 34

35 Agenda Financial reporting Q 205 Munich Re (Group) ERGO Munich Health Reinsurance Outlook Backup 35

36 Backup: Munich Re (Group) Premium development Gross premiums written Q 204 2,924 Foreign-exchange effects 88 Divestment/investment 7 Organic change 72 Q 205 3,038 Segmental breakdown Reinsurance property-casualty 4,598 (36) ( 5.0) ERGO Life/Health Germany 2,42 (8) ( 2.4) ERGO Property-casualty Germany,93 (9) (.) ERGO International 980 (8) ( 7.2) Reinsurance life 2,42 (8) ( 2.6) Munich Health,443 () ( 3.9) 36

37 Backup: Munich Re (Group) Reconciliation of operating to net result Reconciliation of operating to net result Q 205 Operating result 995 Other non-operating result 6 Goodwill impairments Net finance costs 60 Taxes 5 Net result 790 Other non-operating result Tax rates Q 205 Foreign exchange 66 Restructuring charges 6 Other 54 Q 205 Group 6.0 Reinsurance 5.5 ERGO 2.4 Munich Health

38 Backup: Munich Re (Group) Actual vs. analysts consensus Operating result Actual vs. analysts consensus Actual Q Consensus Delta Reinsurance P-C Reinsurance Life ERGO L/H Germany ERGO P-C Germany ERGO International Munich Health Operating result 995,03 08 FX 66 Other 20 Taxes 5 Net result Major developments in Q 205 Reinsurance Property-casualty Combined ratio of 92.3 below consensus (93.0) major loss ratio: 6.2, reserve releases ~4, losses on derivatives Reinsurance Life Technical result of 03m in line with pro-rata annual guidance, lower insurance-related investment result ERGO Life/Health Germany Positive contribution from interest-rate hedge ( 75m/ 7m gross/net) ERGO Property-casualty Germany Combined ratio of 98. above consensus (97.0) impact from storm Niklas ~2.3 ERGO International Combined ratio of 98.7 above consensus (98.0), lower investment result Simple average of estimates the Munich Re investor relations team has gathered from analysts covering Munich Re, not taking into account any external data providers. 38

39 Backup: ERGO Life New business ERGO Life New business (statutory premiums) New business Regular premiums Single premiums APE Life total Q Q Germany (including direct business) Q Q International Q Q Annual premium equivalent (APE = regular premiums +0 single premiums). 2 APE, only third-layer private provision and tied-agent organisations. 39

40 Backup: Reinsurance Property-casualty Combined ratio Development of combined ratio Combined ratio vs. basic losses Combined ratio Basic loss ratio Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Nat cat vs. man-made Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Nat cat ratio Man-made ratio

41 Backup: Investments Breakdown of regular income Actual Q 205 Investment result Regular income () Q 205 Q 204 Change Afs fixed-interest Afs non-fixed-interest Derivatives Loans Real estate Deposits retained on assumed reinsurance and other investments Total regular income,80, Regular income Average,858m,985,934,953,999,843,907,783,796,697,773,826,80 Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q

42 Backup: Investments Breakdown of write-ups/-downs Actual Q 205 Investment result Write-ups/write-downs () Afs fixed-interest Afs non-fixed-interest Loans Real estate Q 205 Q 204 Change Deposits retained on assumed reinsurance and other investments Total net write-ups/write-downs Write-ups/write-downs Average 53m Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Restated figures for 203 and 204 due to separate disclosure of investment result of derivatives. For 202, no restated figures are available. 42

43 Backup: Investments Breakdown of net result from disposals Actual Q 205 Investment result Net result from disposal of investments () Q 205 Q 204 Change Afs fixed-income Afs non-fixed-income Loans Real estate 5 4 Deposits retained on assumed reinsurance and other investments 3 4 Total net result from disposals Net result from disposals Average 472m Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Restated figures for 203 and 204 due to separate disclosure of investment result of derivatives. For 202, no restated figures are available. 43

44 Backup: Investments Return on investment by asset class and segment Actual Q 205 Regular income Write-ups/ -downs Disposal result Extraord. derivative result Other inc./exp. RoI ᴓ Market value () Afs fixed-income ,480 Afs non-fixed-income ,92 Derivatives ,076 Loans ,243 Real estate ,766 Other ,809 Total ,566 Reinsurance ,389 ERGO ,40 Munich Health ,037 Return on investment Average Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Annualised. 2 Including management expenses. 44

45 Backup: Investments Investment result by segment Investment result Reinsurance Life Q 205 Return Q 204 Return Regular income Write-ups/write-downs Disposal gains/losses Derivatives Other income/expenses Investment result Average market value 26,95 23,05 Investment result Reinsurance Property-casualty Q 205 Return Q 204 Return Regular income Write-ups/write-downs Disposal gains/losses Derivatives Other income/expenses Investment result Average market value 66,94 57,202 Return on quarterly weighted investments (market values) in p.a. 2 Result from derivatives without regular income and other income/expenses. 45

46 Backup: Investments Investment result by segment Investment result ERGO Life/Health Germany Q 205 Return Q 204 Return Regular income Write-ups/write-downs Disposal gains/losses Derivatives Other income/expenses Investment result, , Average market value 2,249 05,776 Investment result ERGO Property-casualty Germany Q 205 Return Q 204 Return Regular income Write-ups/write-downs Disposal gains/losses Derivatives Other income/expenses Investment result Average market value 7,442 6,980 Return on quarterly weighted investments (market values) in p.a. 2 Result from derivatives without regular income and other income/expenses. 46

47 Backup: Investments Investment result by segment Investment result ERGO International Q 205 Return Q 204 Return Regular income Write-ups/write-downs Disposal gains/losses Derivatives Other income/expenses Investment result Average market value 8,449 6,443 Investment result Munich Health Q 205 Return Q 204 Return Regular income Write-ups/write-downs Disposal gains/losses Derivatives Other income/expenses Investment result Average market value 4,037 3,684 Return on quarterly weighted investments (market values) in p.a. 2 Result from derivatives without regular income and other income/expenses. 47

48 Backup: Investments Investment portfolio Fixed-interest securities and miscellaneous Investment portfolio Fixed-interest securities Miscellaneous 7.7 (7.7) Fixed-interest securities 55.8 (55.5) Structured products 4 (5) Corporates 6 (5) Governments/ semi-government 60 (59) TOTAL 25bn Banks 4 (3) TOTAL 40bn Loans 28.5 (29.2) Pfandbriefe/ covered bonds 6 (8) Miscellaneous Loans Other 4 (4) Derivatives 7 (6) Investment funds 3 (2) Bank deposits 20 (9) TOTAL 9bn Deposits on reinsurance 46 (49) Loans to policyholders/ mortgage loans 9 (9) Corporates () Banks 4 (4) TOTAL 72bn Governments/ semi-government 40 (39) Pfandbriefe/ covered bonds 46 (47) Approximation not fully comparable with IFRS figures. Fair values as at ( ). 48

49 Backup: Investments Fixed-income portfolio Total Fixed-income portfolio Loans to policyholders/ mortgage loans 3 (3) Governments/ semi-government 5 (50) Structured products 3 (3) Bank bonds 3 (3) TOTAL 220bn Cash/other 5 (4) Corporate bonds 0 (0) Pfandbriefe/ covered bonds 25 (27) Approximation not fully comparable with IFRS figures. Fair values as at ( ). 49

50 Backup: Investments Fixed-income portfolio Total Rating structure Regional breakdown <BB and NR 6 (6) BB 2 (2) BBB 2 (2) A 2 (2) Maturity structure n.a. 2 (2) >0 years 36 (35) 7 0 years 5 (5) TOTAL 220.bn AVERAGE MATURITY 9.3 years AAA 40 (42) AA 28 (26) 0 years 8 (8) 3 years 4 (4) 3 5 years 4 (4) 5 7 years (2) Without With Total policyholder participation Germany US France UK Netherlands Supranationals Canada Spain Italy Ireland Austria Australia Sweden Norway Belgium Other Total Approximation not fully comparable with IFRS figures. Fair values as at ( ). 50

51 Backup: Investments Fixed-income portfolio Governments/semi-government Rating structure Regional breakdown BB () BBB () A 7 (7) AA 37 (35) Maturity structure >0 years 46 (44) 7 0 years 4 (3) TOTAL 2.9bn AVERAGE MATURITY.0 years AAA 44 (46) 0 years 6 (7) 3 years 2 (3) 3 5 years 3 (3) 5 7 years 9 (0) Without With Total policyholder participation Germany US Supranationals Canada UK Italy Spain France Austria Australia Belgium Netherlands Finland Ireland Portugal Other Total Approximation not fully comparable with IFRS figures. Fair values as at ( ). 5

52 Backup: Investments Fixed-income portfolio Pfandbriefe/covered bonds Rating structure BBB 3 (3) A 0 () TOTAL 55.7bn AA 26 (25) AAA 6 (6) Regional breakdown Germany France UK Netherlands Spain Sweden Norway Ireland Italy.3.3 Other Maturity structure Cover pools >0 years 38 (38) 0 years 6 (5) Mixed and other 0 () Mortgage 57 (57) AVERAGE MATURITY 7.7 years 3 years (3) 3 5 years 2 () TOTAL 55.7bn 7 0 years 20 (20) 5 7 years 3 (3) Public 33 (32) Approximation not fully comparable with IFRS figures. Fair values as at ( ). 52

53 Backup: Investments Fixed-income portfolio Corporate bonds (excluding bank bonds) Rating structure Sector breakdown <BB and NR 2 (2) BB () TOTAL 22.6bn AAA () AA 6 (6) Utilities Industrial goods and services.8 2. Oil and gas BBB 47 (46) A 33 (34) Telecommunications Healthcare Financial services Maturity structure Media >0 years 7 (6) 0 years 6 (6) Food and beverages Retail years 7 (8) AVERAGE MATURITY 7.6 years 3 years 2 (9) Basic resources Technology Automobiles years 8 (9) 3 5 years 2 (22) Personal and household goods Other Approximation not fully comparable with IFRS figures. Fair values as at ( ). 53

54 Backup: Investments Fixed-income portfolio Bank bonds Rating structure Regional breakdown <BB and NR 5 (5) BB 6 (5) BBB 26 (25) TOTAL 7.5bn AAA () AA 8 (8) A 54 (56) Total Senior bonds Subordinated Lossbearing US Germany UK Ireland Canada Australia France Netherlands Jersey Other Maturity structure Investment category of bank bonds >0 years 5 (5) 0 years 8 (8) Loss-bearing 4 (5) Senior 8 (8) 7 0 years 0 () AVERAGE MATURITY 4.4 years 3 years 3 (23) Subordinated 2 5 (4) TOTAL 7.5bn 5 7 years 4 (4) 3 5 years 32 (39) Classified as Tier and upper Tier 2 capital for solvency purposes. 2 Classified as lower Tier 2 and Tier 3 capital for solvency purposes. Approximation not fully comparable with IFRS figures. Fair values as at ( ). 54

55 Backup: Investments Fixed-income portfolio Structured products Structured products portfolio (at market values): Breakdown by rating and region Rating AAA AA A BBB <BBB NR Region USA + RoW Europe Total Marketto-par ABS Consumer-related ABS Corporate-related ABS Subprime HEL 97 CDO/ CLN Subprime-related 0 Non-subprime-related ,020, MBS Agency,325 85,40,40 06 Non-agency prime Non-agency other (not subprime) Commercial MBS Total ,245, ,667 3,035 5,702 0 In Total ,374, ,70 3,282 5,992 0 Consumer loans, auto, credit cards, student loans. 2 Asset-backed CPs, business and corporate loans, commercial equipment. Approximation not fully comparable with IFRS figures. Fair values as at

56 Backup: Investments Sensitivities to interest rates, spreads and equity markets Sensitivity to risk-free interest rates Basis points Change in gross market value ( bn) Change in on-balance-sheet reserves, net ( bn) Change in off-balance-sheet reserves, net ( bn) P&L impact ( bn) Sensitivity to spreads 2 (change in basis points) Change in gross market value ( bn) Change in on-balance-sheet reserves, net ( bn) Change in off-balance-sheet reserves, net ( bn) P&L impact ( bn) Sensitivity to equity and commodity markets EURO STOXX 50 (3,697 as at ) 2,588 3,327 4,067 4,806 Change in gross market value ( bn) Change in on-balance-sheet reserves, net ( bn) Change in off-balance-sheet reserves, net ( bn) P&L impact ( bn) Rough calculation with limited reliability assuming unchanged portfolio as at After rough estimation of policyholder participation and deferred tax; linearity of relations cannot be assumed. Approximation not fully comparable with IFRS figures. 2 Sensitivities to changes of spreads are calculated for every category of fixed-interest securities, except government securities with AAA ratings. 3 Worst-case scenario assumed including commodities: impairment as soon as market value is below acquisition cost. Approximation not fully comparable with IFRS figures. 56

57 Backup: Investments On- and off-balance-sheet reserves (gross) Market value of investments 28,047 20,43 235,849 25,283 Total reserves 22,478 5,92 3,470 39,499 On-balance-sheet reserves Fixed-interest securities 9,980 4,66,967 5,322 Non-fixed-interest securities,503,975 2,270 3,62 Other on-balance-sheet reserves Subtotal,774 6,928 4,548 9,273 Off-balance-sheet reserves Real estate 2,59,763 2,006 2,055 Loans and investments (held to maturity) 8,83 6,07 4,400 7,76 Associates Subtotal 0,704 8,264 6,922 20,226 Reserve ratio Unrealised gains/losses from unconsolidated affiliated companies, valuation at equity and cash-flow hedging. 2 Excluding reserves from owner-occupied property. 57

58 Backup: Investments On-balance-sheet reserves On-balance-sheet reserves Change Q Investments afs 8,934 4,697 Valuation at equity 22 9 Unconsolidated affiliated enterprises 83 5 Cash flow hedging 34 4 Total on-balance-sheet reserves (gross) 9,273 4,725 Provision for deferred premium refunds 8,342,924 Deferred tax 2, Minority interests 26 2 Consolidation and currency effects Shareholders' stake 8,067 2,043 58

59 Backup: Investments Off-balance-sheet reserves Off-balance-sheet reserves Change Q Real estate 2, Loans and investments (held to maturity) 7,76 3,36 Associates Total off-balance-sheet reserves (gross) 20,226 3,304 as if Provision for deferred premium refunds 5,349 2,744 Deferred tax, Minority interests 0 Shareholders' stake 3, Excluding reserves for owner-occupied property. 59

60 Backup: Shareholder information Development of shares in circulation Shares (millions) Acquisition of own shares in Q 205 Retirement of own shares in Q 205 Shares in circulation Own shares held Total Weighted average number of shares in circulation (millions) Q

61 Backup: Shareholder information Financial calendar June Investor Day, London 6 August Interim report as at 30 June November Interim report as at 30 September February Preliminary key figures 205 and renewals 6 March Balance sheet press conference for 205 financial statements Analysts' conference in Munich with videocast 27 April Annual General Meeting 206, ICM International Congress Centre Munich 0 May Interim report as at 3 March August Interim report as at 30 June November Interim report as at 30 September 206 6

62 Backup: Shareholder information For information, please contact INVESTOR RELATIONS TEAM Christian Becker-Hussong Head of Investor & Rating Agency Relations Tel.: +49 (89) Thorsten Dzuba Tel.: +49 (89) Christine Franziszi Tel.: +49 (89) Britta Hamberger Tel.: +49 (89) Ralf Kleinschroth Tel.: +49 (89) Andreas Silberhorn Tel.: +49 (89) Angelika Rings Tel.: +49 (2) Andreas Hoffmann Tel.: +49 (2) Ingrid Grunwald Tel.: +49 (89) Münchener Rückversicherungs-Gesellschaft Investor & Rating Agency Relations Königinstraße München, Germany Fax: +49 (89) Internet: 62

63 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 actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments. Figures up to 200 are shown on a partly consolidated basis. "Partly consolidated" means before elimination of intra-group transactions across segments. ERGO new segmentation: before elimination of business with Munich Re, consolidated, after elimination of all intra-group business, new segmentation, earnings include share of holding costs. 63