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 Reinsurance 13 3 4 Outlook 20 5 Backup 22 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% – Miscellaneous 2 derivatives position slightly reduced TOTAL 8.0 (7.7) € 240bn  Further expansion of alternative and infrastructure investments Shares, equity funds and Loans participating interests 3  Temporarily higher short-term investments 6.6 (6.2) 27.1 (27.7) (funding of dividend payment) € m Portfolio duration 1 DV01 1,4 Assets Liabilities Assets Liabilities Net 5.3 (5.0) 6.2 (5.8) 37 (34) 33 (30) Reinsurance 4 – 10 8.9 (8.8) 9.4 (9.2) 117 (112) 127 (120) ERGO – 6 7.7 (7.5) 8.5 (8.2) 154 (146) 160 (150) Munich Re (Group) 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 renewable 5 energies and gold. 3 Net of hedges: 6.0 (5.2%). 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 2019 liabilities (pre-tax). Negative net DV01 means rising interest rates are beneficial.

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 Life and Health Germany Gross premiums written Major result drivers € m € m Q1 2019  Q1 2018 2,321 Q1 2018 Technical result 110 91 20 0 Foreign exchange – 8 Non-technical result 52 60 – 1 Divestments/investments – 57 thereof investment result 992 1,049 26 Organic change – 99 – 115 16 Other 2,346 63 Q1 2019 Net result 36 27  Life: –€ 43m Technical result Other Decline in in-force business, growth from  Improvements in Life – Adjusted distribution  FX result improved significantly new products of shareholder profits during the year  Higher tax expenses, partly due to  Health: + € 57m a positive one-off in 2018 Strong increase in Travel; growth in Investment result comprehensive and supplementary insurance  Disposal gains to finance ZZR  Digital Ventures: + € 11m  Negative contribution from equity derivatives Growth driven by dental tariffs and nexible partly offset by positive result from interest- motor business rate hedging  Return on investment 3.3% 8 Quarterly statement as at 31 March 2019

ERGO ERGO Property-casualty Germany Gross premiums written Major result drivers € m € m Q1 2019  Q1 2018 1,266 Q1 2018 – 6 Technical result 23 29 0 Foreign exchange Non-technical result 26 20 6 Divestments/investments 0 thereof investment result 45 37 8 83 Organic change – 35 – 14 – 21 Other 1,349 Q1 2019 14 Net result 0 14  Organic growth mainly driven by fire/property Technical result Investment result (+ € 40m), other insurance (+ € 31m, primarily  Improvement driven by premium growth  Disposal gains from equities increased marine) and liability (+ € 17m)  Combined ratio of 98.1%, affected by  Higher regular income from private  Positive development owing to earlier receipt Winter Storm Eberhard equity and dividends of some large contracts in broker channel  Adjusted for above-average large-loss  Lower equity derivatives result expenditure and for the usual seasonal  Return on investment 2.4% fluctuations in claims and premiums, the underlying combined ratio in Q1 supports Other the ~93% full-year guidance for 2019  Tax one-off in 2018 9 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 10 Quarterly statement as at 31 March 2019

ERGO ERGO International Gross premiums written Major result drivers € m € m Q1 2019  Q1 2018 1,356 Q1 2018 – 3 Technical result 44 47 – 22 Foreign exchange – 14 – 26 Non-technical result 12 – 27 Divestments/investments – 19 thereof investment result 79 98 – 7 Organic change – 22 – 19 – 4 Other 1,300 8 – 33 Q1 2019 Net result 41 Life: –€ 43m Technical result Investment result  Austria: Lower single-premium business  Life  Lower equity derivatives result compared with strong Q1 2018 Negative effect from discontinuation of  Disposal losses related to portfolio  Belgium: Impacted by run-down banking cooperation in CEE optimisation ( –€ 22m)  Russia: Disposal of life business  P-C  Return on investment: 1.8% P-C: –€ 27m Improvements mainly due to new Growth in Poland more than offset by divestments reinsurance structure Other and decrease in Greece after a strong Q1 2018  Health  Slightly improved non-operating result Health: + € 13m Higher claims in Spain (seasonal effect) Premium adjustments in Belgium from 2018 and growth of individual and burial business in Spain 11 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 12 Quarterly statement as at 31 March 2019

Reinsurance 13 Quarterly statement as at 31 March 2019