Quarterly statement as at 31 March 2017 9 May 2017 Jrg Schneider - PowerPoint PPT Presentation

http://www.presentationworks.de Image: Getty Images/fStop Quarterly statement as at 31 March 2017 9 May 2017 Jörg Schneider

Agenda 1 Munich Re (Group) 4 Outlook 2 20 2 ERGO 5 First-time publication SFCR reports 7 22 3 Reinsurance 6 Backup 13 31 2 Quarterly statement as at 31 March 2017

Munich Re (Group) – Financial highlights Q1 2017 Q1 result in line with expectations – Well on track to achieve annual targets Munich Re (Group) Q1 2017 (Q1 2016) € m € m € m Net result Technical result Investment result Net result € 557 m ( € 436m) 945 2,151 Good underwriting performance, 694 strong investment result 1,572 557 436 Return on investment 1 3.6 % (2.7%) Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Stable running yield, disposal gains due to financing of ZZR at ERGO L/H Germany exceed derivative losses Reinsurance ERGO Life and Health: Technical result incl. fee income: € 158m Life and Health Germany: ( € 74m) – On course to achieve annual target of € 450m Return on investment: 4.5% Shareholders' equity Property-casualty: Combined ratio: 97.1% (88.4%) – Property-casualty: € 32.1 bn (+1.2% vs. 31.12.) Major-loss ratio: 9.6% (2.4%) Combined ratio: 99.1% (98.6%) Sound capitalisation – April renewals: International: Solvency II ratio at 243% 2 Price change: – 0.5%, exposure change: – 8.7% Combined ratio: 96.3% (94.3%) 3 1 Annualised. 2 Decrease vs. 31.12.2016 (267%) due to dividend for 2016 paid in April 2017, share buy-back 2017/18 and call of subordinated bond to be redeemed in June 2017. Quarterly statement as at 31 March 2017

Munich Re (Group) – Capitalisation IFRS capital position € m € bn Equity Capitalisation 31,785 Equity 31.12.2016 0.4 0.4 0.4 0.4 0.4 557 Consolidated result 4.2 4.2 2.8 0.3 4.4 4.4 Changes – 4.4 Dividend 221 Unrealised gains/losses – 101 Exchange rates – 326 Share buy-backs 23 Other 15.3 13.6 32,160 13.4 Equity 31.3.2017 12.6 12.4 9.1 Unrealised gains/losses Exchange rates 26.2 30.3 31.0 31.8 32.2 32.2 1 2013 2014 2015 2016 Q1 2017 Q1 2017 Fixed-interest securities FX effect mainly driven by US$ –€ 49 m Debt leverage 2 (%) Senior and other debt 3 Non-fixed-interest securities € 277 m Subordinated debt Equity 4 1 As-if taking into account early redemption of subordinated debt as at 12 June 2017. 2 Strategic debt (senior, subordinated and other debt) divided by total capital (strategic debt + equity). Quarterly statement as at 31 March 2017 3 Other debt includes Munich Re bank borrowings and other strategic debt.

Munich Re (Group) – Investment portfolio Investment portfolio Investment portfolio 1 % Portfolio management in Q1 Land and buildings Fixed-interest securities  Ongoing geographic diversification 2.9 (2.9) 55.9 (56.3)  Slight decrease in corporate bonds Shares, equity funds and participating interests 2  Slight increase in net equity exposure TOTAL 6.6 (6.1) to 5.3% € 235 bn Miscellaneous 3  Shortening of asset duration at 6.7 (6.2) ERGO Life and Health Germany Loans 27.8 (28.5) € m Portfolio duration 4 DV01 1,4 Assets Liabilities Assets Liabilities Net – 1 6.0 (5.9) 5.0 (4.6) 45 (45) 47 (43) Reinsurance – 19 8.8 (9.3) 10.1 (10.6) 113 (121) 132 (143) ERGO 7.7 (8.0) 8.0 (8.1) 158 (166) 178 (185) – 20 Munich Re (Group) 1 Fair values as at 31.3.2017 (31.12.2016). 2 Net of hedges: 5.3% (5.0%). 3 Deposits retained on assumed reinsurance, deposits with banks, investment funds (excl. equities), derivatives 5 and investments in renewable energies and gold. 4 Market value change due to a parallel downward shift in yield curve by one basis point-considering the portfolio size of assets and Quarterly statement as at 31 March 2017 liabilities (pre-tax). Negative net DV01 means rising interest rates are beneficial.

Munich Re (Group) – Investment result Investment result Investment result ( € m) Return 1 Return 1 Q1 2017 Q1 2016 1,634 2.8% 1,628 2.8% Regular income – 26 – 0.0% – 219 – 0.4% Write-ups/write-downs 1,048 1.8% 218 0.4% Disposal gains/losses – 362 – 0.6% Derivatives 2 74 0.1% – 143 – 0.2% – 128 – 0.2% Other income/expenses 2,151 3.6 % 1,572 2.7 % Investment result – 0.3% 13.2% Total return 3-month Write-ups/ Disposal Write-ups/ Disposal reinvestment yield Q1 2017 write-downs gains/losses Derivatives Q1 2016 write-downs gains/losses Derivatives Q1 2017 2.0 % – 119 – 87 1 727 220 228 Fixed income 3 Fixed income 3 – 16 – 218 – 150 – 3 – 136 1.8% 312 Q4 2016 Equities Equities – 19 – 10 1.8% 31 52 Q3 2016 Commodities/Inflation Commodities/Inflation – 42 – 6 – 34 – 9 1.6% 9 1 Q2 2016 Other Other 6 1 Annualised return on quarterly weighted investments (market values) in %. 2 Result from derivatives without regular income and other income/expenses. Quarterly statement as at 31 March 2017 3 Thereof interest-rate hedging ERGO: Q1 2017: –€ 130m/ –€ 14m (gross/net); Q1 2016: € 267m/ € 34m (gross/net).

ERGO 7 Quarterly statement as at 31 March 2017

ERGO ERGO Life and Health Germany Q1 2017 vs. Q1 2016 € m € m Gross premiums written Major result drivers  Q1 2017 Q1 2016 2,333 Q1 2016 Technical result 102 83 19 – 4 Foreign exchange – 24 71 95 Non-technical result 0 Divestments/investments 1,337 1,266 71 thereof investment result – 5 Organic change – 110 – 164 54 Other 2,324 63 Q1 2017 14 49 Net result  Life: –€ 51m Technical result Other Decline in regular premiums due to ordinary  Slight improvements in Life and Health  Lower tax expenses (extraordinary tax attrition, while single-premium business overcompensate for decrease in Direct charges at DKV in Q1 2016) suffered from lower product sales business  Negative FX effect (disposal of shares  Health: + € 45m denominated in pounds sterling) Investment result Positive development in comprehensive and supplementary insurance driven by premium  Decrease in derivative result adjustments overcompensated by disposal gains to finance bulk of 2017 ZZR  Lower regular income  Return on investment 4.5% 8 Quarterly statement as at 31 March 2017

ERGO ERGO Property-casualty Germany Q1 2017 vs. Q1 2016 € m € m Gross premiums written Major result drivers  Q1 2017 Q1 2016 1,219 Q1 2016 Technical result 16 14 1 – 3 Foreign exchange – 48 29 77 Non-technical result 0 Divestments/investments – 15 thereof investment result 49 64 Organic change 23 – 32 – 41 Other 9 1,240 12 – 25 Q1 2017 Net result 37  Organic growth mainly driven by new Technical result Investment result business in fire/property (+ € 15m), liability  Combined ratio slightly increased to 99.1%  High disposal gains mainly from equities (+ € 9m) and motor (+ € 5m) (+0.5%-pts.)  Lower level of equity impairments  Motor and fire/property mainly responsible  Return on investment: 2.9% for higher loss ratio (+0.5%-pts.)  Expense ratio stable at 35.8% Other  Positive one-off in 2016  Investments in ERGO Strategy Programme  Tax refund 9 Quarterly statement as at 31 March 2017

ERGO ERGO Property-casualty Germany € m Combined ratio % Gross premiums written  Loss ratio  Expense ratio Other Motor 115 345 97.9 2015 64.7 33.2 97.0 2016 61.9 35.1 Legal protection 119 99.1 Q1 2017 63.3 35.8 TOTAL € 1,240 m 103.9 100.0 99.1 Fire/property 98.6 239 96.1 93.4 96.1 93.3 Liability Personal accident 258 164 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2015 2015 2015 2016 2016 2016 2016 2017 10 Quarterly statement as at 31 March 2017

ERGO ERGO International Q1 2017 vs. Q1 2016 € m € m Gross premiums written Major result drivers  Q1 2017 Q1 2016 1,335 Q1 2016 Technical result 45 28 16 – 3 Foreign exchange – 27 7 33 Non-technical result – 31 Divestments/investments – 67 74 141 thereof investment result Organic change 15 – 35 – 63 28 Other 1,315 16 – 1 Q1 2017 18 Net result Life: –€ 104m Technical result Investment result  Italy: Sale of ERGO Italia in Q2 2016 ( –€ 58m) Life (+ € 21m): Negative result of  Decrease of derivative result and lower regular income ERGO Italia in Q1 2016 partly compensated for by higher disposal gains  Less new business in Poland and Austria P-C ( –€ 3m):  Return on investment: 1.7% P-C: + € 66m  Poland: Tariff adjustments in motor  Increase mainly driven by motor business Other implemented in 2015 and 2016 in Poland  Higher unrealised gains from unit-linked business  Greece: Positive impact from  Acquisition of ATE in Q3 2016 (+ € 30m) in Belgium and Austria inclusion of ATE Health: + € 19m  Lower tax rate Health ( –€ 2m): Positive one-off at  Growth across all countries driven by new  Payments for an exclusivity agreement in Q1 2016 DKV Seguros in Q1 2016 business and premium adjustments 11 Quarterly statement as at 31 March 2017