Quarterly statement as at 31 March 2019 8 May 2019 Christoph - PowerPoint PPT Presentation

Quarterly statement as at 31 March 2019 8 May 2019 Christoph Jurecka Image: AdobeStock/LuckyStep

Agenda 2 Munich Re (Group) 1 ERGO 7 2 3 Reinsurance 11 4 Outlook 16 2 Quarterly statement as at 31 March 2019

Munich Re (Group) – Financial highlights Q1 2019 Good start to the year MUNICH RE (GROUP) Q1 2019 (Q1 2018) Net result Technical result Investment result Net result € m € m € m € 633 m ( € 827m) Solid underlying performance, 1,796 1,741 positive currency effects and 1,020 827 low tax expenses 633 642 Return on investment 1 2.9% (3.1%) Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Disposal gains offset write-downs Reinsurance ERGO and derivative losses Life and Health: Technical result incl. fee income: € 105m Life and Health Germany: ( € 155m) – slightly below run-rate due to technical one-offs Life: High RoI; Health: Sound performance Shareholders' equity Property-casualty: Combined ratio: 97.9% (88.6%) – Property-casualty: € 29.0 bn (+9.4% vs. 31.12.) C/R: 98.1% (101.7%) – Storm Eberhard Major-loss ratio: 9.7% (1.4%) Sound capitalisation – April renewals: International: Solvency II ratio at ~250% Price change: ~ +1.4%, premium change: +10.3% C/R: 95.4% (95.3%); disposal losses 3 1 Annualised. Quarterly statement as at 31 March 2019

Munich Re (Group) – Capitalisation IFRS capital position Equity Capitalisation € m € bn 0.4 0.4 26,500 Equity 31.12.2018 0.3 4.2 0.3 633 4.4 Consolidated result 0.3 3.9 2.8 Changes 3.7 Dividend 0 2,066 Unrealised gains/losses 326 Exchange rates – 280 Share buy-backs 13.4 – 254 13.2 Other 12.6 12.6 10.0 Equity 31.3.2019 28,990 31.0 31.8 28.2 26.5 29.0 Unrealised gains/losses Exchange rates 2015 2016 2017 2018 31.3.2019 Fixed-interest securities FX effect mainly driven by US$ € 1,366m Debt leverage 1 (%) Senior and other debt 2 Non-fixed-interest securities Subordinated debt € 698m Equity 4 1 Strategic debt (senior, subordinated and other debt) divided by total capital (strategic debt + equity). Quarterly statement as at 31 March 2019 2 Other debt includes Munich Re bank borrowings and other strategic debt.

Munich Re (Group) – Investments Investment portfolio Investment portfolio 1 Portfolio management in Q1 %  Increased market values after decline of Land and buildings Fixed-interest securities 4.4 (4.6) 53.8 (53.8) interest rates and strong equity markets  Equity quota net of hedges up to 6.0% – derivatives position slightly reduced Miscellaneous 2 8.0 (7.7)  Further expansion of alternative and infrastructure investments TOTAL € 240 bn  Temporarily higher short-term investments Shares, equity funds and (funding of dividend payment) participating interests 3 6.6 (6.2) Loans 27.1 (27.7) 5 1 Fair values as at 31.3.2019 (31.12.2018). 2 Deposits retained on assumed reinsurance, deposits with banks, investment funds (excl. equities), derivatives and investments in Quarterly statement as at 31 March 2019 renewable energies and gold. 3 Net of hedges: 6.0 (5.2%).

Munich Re (Group) – Investments Investment result € m Return 1 Return 1 Q1 2019 Q1 2018 1,611 2.7% 1,493 2.6% Regular income – 83 – 0.1% – 115 – 0.2% Write-ups/write-downs 602 1.0% 584 1.0% Disposal gains/losses – 231 – 0.4% – 17 Derivatives 2 0.0% – 157 – 0.3% – 149 – 0.3% Other income/expenses 1,741 2.9% 1,796 3.1% Investment result – 1.3% 12.5% Total return 3-month Write-ups/ Disposal Write-ups/ Disposal reinvestment yield Q1 2019 write-downs gains/losses Derivatives Q1 2018 write-downs gains/losses Derivatives – 1 – 124 Q1 2019 2.1 % – 9 370 16 326 Fixed income Fixed income – 79 – 68 – 321 188 209 109 Equities Equities 2.1% Q4 2018 Commodities/Inflation 5 48 Commodities/Inflation 9 7 2.5% Q3 2018 – 44 – 8 – 11 44 25 50 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 2019

ERGO 7 Quarterly statement as at 31 March 2019

ERGO ERGO Gross premiums written Major result drivers € m € m Q1 2019  Q1 2018 4,943 Q1 2018 Technical result 177 132 45 – 22 Foreign exchange – 28 Non-technical result 64 93 – 28 Divestments/investments – 68 thereof investment result 1,116 1,184 102 Organic change – 156 – 147 – 9 Other 4,995 85 Q1 2019 Net result 77 8  Property-casualty Germany 1 (+ € 83m): Technical result Investment result Positive development by earlier receipt of  Disposal gains to finance ZZR Increase driven by P-C Germany and L&H some large contracts in broker channel;  Lower derivatives result (driven by L&H Germany highest growth in fire/property, marine and  P-C Germany (+ € 29m), improvements driven Germany equity derivatives) liability  Return on investment 3.0% by premium growth  Life and Health Germany 1 (+ € 25m):  L&H Germany (+ € 20m), adjusted distribution Positive development in Health, Travel and Other of shareholder profits during the year Direct; decline in Life despite growth from  FX result improved, mainly in L&H  International ( –€ 3m), decrease in Health new products Germany (mainly seasonality in Spain) is partly offset  International ( –€ 56m): Lower premium  Higher tax expenses among others due to by improvements due to new reinsurance volume mainly due to divestments in 2018 one-off effects in 2018 structure 8 1 Life and Health Germany (L&H Germany); Property-casualty Germany (P-C Germany). Quarterly statement as at 31 March 2019

ERGO ERGO Property-casualty Germany Combined ratio Gross premiums written € m %  Loss ratio  Expense ratio Other Motor 155 (124) 353 (358) 2017 97.5 64.1 33.5 96.0 62.5 33.4 2018 Q1 98.1 64.7 33.4 2019 TOTAL Legal protection Liability € 1,349 m 123 (122) 277 (260) 101.7 98.1 98.1 94.7 100.3 97.9 92.7 90.3 Personal accident Fire/property Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 160 (162) 281 (241) 2017 2017 2017 2018 2018 2018 2018 2019 9 Quarterly statement as at 31 March 2019

ERGO ERGO International Combined ratio Gross premiums written € m % Property-casualty Life 98.7 730 (756) 170 (213) 94.5 95.4 95.6 94.7 TOTAL 95.3 € 1,300 m 93.3 91.5 Health Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 400 (387) 2017 2017 2017 2018 2018 2018 2018 2019 Q1 2019 P-C Q1 Q1 Life Q1 Q1 116.0 102.7 2019 2018 2019 2018 98.5 98.9 thereof: thereof: 91.0 77.0 Austria 86 94 370 350 Poland 37 45 Belgium 168 183 Legal protection Health 57 72 Greece thereof: Baltics 48 44 241 234 Spain Spain Poland Greece Turkey Baltics Legal Turkey 34 46 Belgium 159 153 protection 10 Quarterly statement as at 31 March 2019

Reinsurance 11 Quarterly statement as at 31 March 2019

Reinsurance Reinsurance Life and Health Gross premiums written Major result drivers € m € m Q1 2019  Q1 2018 2,865 Q1 2018 – 62 Technical result 78 140 101 Foreign exchange – 34 Non-technical result 48 82 Divestments/investments 0 – 31 thereof investment result 177 207 – 71 Organic change – 62 2 64 Other 2,896 128 – 31 Q1 2019 Net result 159  Positive FX effects mainly driven by US$ Technical result, incl. fee income of € 105m Investment result  Restructuring of a large capital-relief  Negative technical reserving effects  Disposal gains after shortening of asset transaction resulting in top- line decrease … duration in Canada (albeit major part  Australia: Strengthening of claims allocated to P-C Reinsurance segment)  … largely offset by organic growth in Asia reserves due to declining interest rates and Europe  Return on investment: 2.6%  Canada: Shortening of asset duration  Biometric experience in line with Other expectations overall – adverse development  FX result of € 20m ( –€ 6m) in Australia compensated for by positive experience in Continental Europe 12 Quarterly statement as at 31 March 2019

Reinsurance Reinsurance Property-casualty Gross premiums written Major result drivers € m € m Q1 2019  Q1 2018 5,317 Q1 2018 – 362 Technical result 387 749 214 Foreign exchange Non-technical result 121 89 32 – 41 Divestments/investments thereof investment result 449 404 44 – 6 Organic change – 88 – 247 159 Other 5,484 420 – 171 Q1 2019 Net result 591  Positive FX effects mainly driven by US$ Technical result Investment result  Sale of MSP Underwriting  Below-average major losses despite  Disposal gains after shortening of negative run-off for prior-year claims of asset duration in Canada and sale 5.1%-pts. of MSP Underwriting  Elevated basic losses due to larger losses  Return on investment: 2.9% below outlier threshold in North American Risk Solutions business and higher Other commissions  FX result of € 39m ( –€ 28m) 13 Quarterly statement as at 31 March 2019