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plainpicture/fStop/Ralf Hiemisch
Delivering strong capital returns
Analysts' conference 2015
Munich, 11 March 2015
1
Agenda
Nikolaus von Bomhard
2
Munich Re (Group)
Jörg Schneider
14
Risk management
Bernhard Kaufmann
27
ERGO
Torsten Oletzky
40
Reinsurance Property-casualty
Torsten Jeworrek
53
Reinsurance Life
Joachim Wenning
70
Backup
83
2
Munich Re remains an under-promise/
over-deliver investment case
Delivering on promised net result
3.2
Actual
2.4
2.0
Guidance
3.0
3.3
€bn
Earnings outlook 2015
3.0 3.2
Strong balance sheet
2.5
2.4
2.5–3.0
Direct and indirect impact
of low interest rates
0.7
2010
Sensitivities
20111
2012
2013
Economic solvency ratio2
%
Shareholders’ equity
€bn
138
As at 31.12.14
30.3
155
Interest rates +100bps
Interest rates –100bps
2014
26.8
117
Strong balance sheet mitigates earnings pressure from low interest rates and
declining reinsurance margins
1
2
Assuming normal nat cat claims based on 8.5% budget, net result would have exceeded guidance.
Solvency II capital based on VaR 99.5%, Munich Re internal risk model based on 175% of Solvency II capital.
3
Munich Re well positioned to
successfully master industry challenges
Ongoing decline in interest rates is …
… weighing on the investment result
running yield
5
10-year German Bund yield in %
4
4.0%
reinvestment yield
3.6%
3.5%
3.2%
~3.0%
2012
2013
2014
2015e
3
2
1
0
2010
2011
2012
2013
2014
… also leading to imbalance of supply and demand
2011
... and putting pressure on underwriting margins1
2.4%
1.0%
Traditional Alternative
reinsurance capital
capacity
0.2%
Retentions Reinsurance
demand
2011
2012
2013
–2.4%
2014
–1.3%
2015
Prudent investment strategy and underwriting discipline are the order of the day
1
Year-to-date price change of renewals. 2015 only includes January renewals.
4
Sound capitalisation is driving high shareholder payout …
€bn
Attractive shareholder participation1
Cash yield2 11.2%
Share
buy-back
7.8%
5.4%
6.0%
2.4
1.5
Dividend
2010
2011
1.1
2012
Excellent economic solvency ratio
Internal
model
9.6%
8.1%
2.7
17.4
1.6
2013
€
Dividend per share
CAGR: 7%
7.75
4.50
2014
2006–2014
Substantial rating capital buffer
Rating
agencies
2006
...
2010 2011 2012 2013 2014
Solid German statutory accounts
HGB3
flexibility
Temporarily lower earnings are not jeopardising our capital return story
1
3
Cash-flow view. 2 Total payout (dividend and buy-back) divided by average market capitalisation.
German statutory accounting standards.
5
… and stabilising earnings
in a softening reinsurance market
… support high earnings contribution
from underwriting at Group level2
Constantly positive net run-off results in
property-casualty reinsurance1 …
5.8%
81%
2013
2014
72%
5.3%
4.4%
83%
49%
~4%
2.8%
3.7%
16%
2010
2011
2012
2013
2014
Actual losses consistently below actuarial
expectations – at least 4% reserve releases also
expected going forward
2010
2011
2012
Sound technical results (including technical
interest) mitigate declining contribution from
investment income
Profitability in property-casualty reinsurance supported by strong reserving position
1
2
In % of net earned premiums, adjusted for commission effects.
Contribution of technical result as a percentage of operating result.
6
Strong track record in value generation
Return on equity
%
Average cost of capital
Risk/return profile1
%
Total shareholder return (p.a.)
20
15.3
14.1
12.5
11.8
Peer 3
15
12.5 12.5
11.3
10.4
Peer 2
10
7.0
Peer 4
Index
5
Peer 5
Peer 6
0
3.3
Peer 1
–5
20
2005
2008
2011
10-year average ROE: ~11.1% –
Clearly exceeds cost of capital: ~8%
2014
25
30
35
40
45
Volatility of total shareholder return (p.a.)
Annualised TSR: ~12.0% –
Outperforming major peers and insurance index
Balanced business portfolio paves the way for sustainable profitability
1
Annualised total shareholder return defined as price performance plus dividend yield over the period from 1.1.2005 until 28.2.2015;
based on Datastream total return indices in local currency; volatility calculation with 250 trading days per year.
Peers: Allianz, Axa, Generali, Hannover Re, Swiss Re, ZIG, Stoxx 600 Insurance (“index”).
7
Reinsurance – Leveraging on leading market position
€bn
Property-casualty – GWP1
Risk
Solutions
Traditional
p-c
reinsurance
€m
Life – Technical result
Adjusted
16.6
16.7
1.9
4.2
14.7
2008
12.5
2014
420
359
354
280
79
2010
2011
2012
2013
2014
 Continued growth in attractive specialty business
(Risk Solutions) …
 Thorough review of critical portfolios results in
earnings volatility …
 … mitigates competitive pressure and decline of
traditional book – rigorous cycle management
 … while majority of the business performs in line
with expectations or better
 Expansion of tailor-made solutions and
innovative concepts for new and emerging risks
 Confirmed technical result target of ~€400m p.a.
Actively shaping our business model – Seizing opportunities for profitable growth,
taking advantage of underinsured markets/risks and demographic challenges
1
Gross premiums written.
8
ERGO – Management measures bearing fruit
International – Combined ratio %
P-C Germany – Combined ratio %
Life Germany
%
Target portfolio (incl. new life product)
Traditional portfolio
107.8
104.5
98.0
99.8
95.5
98.7
96.7
95.3
30
41
54
84
97.3
89.8
70
59
46
16
2016e
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
 Back to normal –
Turnaround successfully
completed
 Sound profitability – Based on
favourable business mix
Continuously improving risk/
return profile
 Combined ratio target: ~93%
 Expansion of new life product
 Combined ratio better than
initial target of ~98%
2010
2012
2014
 Interest-rate hedging
 Duration management
 Restrictive bonus policy
Low interest rates reign – ERGO on the move, addressing the challenges
9
Munich Health – Focus on stabilising business
E
XCELLENCE
Strengthen core capabilities
E
XECUTION
Improve effectiveness
E
XPANSION
Seize growth opportunities
 Continuously improve
processes in underwriting,
client management and
product development
 Stronger business-unit-level focus
 Set up expertise and best
practice
 Enhance new focus areas,
e.g. data analytics
 Further recalibrate local strategies
 Implement new ventures
to market conditions and client
 Tap emerging markets
needs
 Explore digitalisation developments and their application to health
Continuous approach
 Expansion in Middle East
 Turnaround of underperforming
business
 Seize opportunities of digitalisation
Current focus
Stronger focus in future
Private health insurance growing worldwide above GDP – Munich Health
paving the way for sustainable growth
10
Munich Re well positioned
for the introduction of Solvency II
Impact on insurance industry
New
standards in
risk-based
supervision
Uniform regulatory framework
enhances comparability
Risk management already effective
and integrated in decision-making
process

Changing
capital
requirements
Depending on company size,
level of diversification and
product specifics
Capitalisation remains very strong –
No major changes expected in capital
allocation and distribution

Market
dynamics
Driver for consolidation,
increasing reinsurance demand
and product innovation
Market-leader position in structuring
complex tailor-made solutions –
launch of new life products in 2013

Ready for regulatory requirements while providing clients with capital
management solutions
11
Looking ahead – World of opportunities
Short-term priorities
Managing downside
Preserving profitability
Business expansion
ERGO traditional
German Life
ERGO P-C Germany
ERGO International
ERGO Health Germany
Risk Solutions
Reinsurance Life
Mid-term outlook
Traditional P-C reinsurance
Munich Health
Remain disciplined
with strict bottomline focus
Maintain focus on
technical excellence
and underwriting rigour
Foster strong capital
base and financial
flexibility
Continue to increase
dividend with longterm earnings growth
Temporary earnings pressure outweighed by mid- and long-term growth
perspectives – Innovative power key to success
12
Outlook 2015
Munich Re (Group)
GROSS PREMIUMS WRITTEN1
€47–49bn
RETURN ON INVESTMENT
at least 3%
NET RESULT
€2.5–3bn
Focus on bottom-line growth
prevails
Solid return given ongoing low
interest-rate environment
RoRaC target of 15% after tax
over the cycle to stand
Reinsurance
ERGO
Munich Health
COMBINED RATIO
COMBINED RATIO
COMBINED RATIO
~98%
NET RESULT
at least €2bn
1
Germany: ~93%
International: ~97%
NET RESULT
~€500m
By segment: Reinsurance €26–27bn, ERGO €16–16.5bn, Munich Health slightly above €5bn.
~99%
NET RESULT
€50–100m
13
Agenda
Munich Re (Group)
Jörg Schneider
Risk management
Bernhard Kaufmann
ERGO
Torsten Oletzky
Torsten Jeworrek
Reinsurance Life
Joachim Wenning
Backup
14
Munich Re (Group) – Financial highlights 2014
Good annual profit of €3.2bn –
Dividend increasing to €7.75 per share
Munich Re (Group) – Q1–4 2014 (Q4 2014)
NET RESULT
SHAREHOLDERS' EQUITY
INVESTMENT RESULT
€3,171m (€729m)
€30.3bn (+3.6% vs. 30.9.)
RoI of 3.6% (3.4%)
Pleasing result with several
countervailing items – tax refund,
benign major losses, goodwill
impairment, Australian disability
Strong capital position –
increased dividend and
continuation of share buy-back
of €1bn until AGM 2016
Solid return given low interest rates
– Economic ALM results in losses
on derivatives while usual portfolio
turnover leads to disposal gains
Reinsurance
ERGO1
Munich Health
NET RESULT
NET RESULT
NET RESULT
€2,893m (€962m)
2,483
€169m (–€247m)
269
176
€109m (€14m)
410
–276
109
P-C
LIFE
P-C GERMANY
REINSURANCE
Combined ratio
92.7% (91.2%)
Major-loss ratio
7.2% (6.1%)
Technical result
of €280m below
annual guidance
– sound
underlying
performance
Combined ratio 95.3% (97.1%)
L/H GERMANY
INTERNATIONAL
PRIMARY INSURANCE
Decent
net result
Combined ratio
97.3% (96.8%)
1
Unless otherwise indicated, all ERGO figures shown in this presentation refer to the business field ERGO
according to the segment reporting of Munich Re (Group).
15
Munich Re (Group) – Earnings
Strong balance sheet protecting earnings
Impact on earnings – Short-term pressure
mitigated by strong balance sheet
Impact on capital management – High persistency
based on strong capitalisation
1 Investment result
3
Economic solvency ratio well above
120% – good basis for distributions
to shareholders
Disposal gains
Lower reinvestment yields
2 Property-casualty reinsurance result
4
Substantial capital buffer
supporting AA rating –
providing high level of flexibility
Strong reserving position
Reinsurance cycle
German statutory earnings, largely
protected by huge equalisation
reserve, financing capital repatriation
High distribution in spite of temporary earnings pressure
16
Munich Re (Group) – Investment result
1
Low interest rates impacts investment result …
Return on investment
%
€bn
Total investments
Valuation reserves
4.5
3.9
3.4
3.4
225
3.6
187
7
196
11
Disposal gains
236
8.6
8.4
210
15
31
1.6
1.2
8.0
7.2
6.8
22
€bn
Investment result
0.7
1.8
2.9
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
2010 2011 2012 2013 2014
Resilient RoI given ongoing
decline of interest rates …
… which significantly pushes up
valuation reserves – …
… leading to disposal gains due
to usual portfolio turnover
… mitigated by increasing amount of unrealised gains
17
Munich Re (Group) – Investment result
1
Well-balanced investment management in
low-interest-rate environment
Running and reinvestment yield
2011
4.0
3.6 3.5
2012
3.2
%
2013
2014
Composition of reinvestment yield 20141
Reinvestment yield (%)
4
3
3.0
2.2 2.3 2.4
Corporate
bonds
Bank bonds
Structured
products
Pfandbriefe/
covered bonds
2
1
Government
bonds
0
Yield curve German sovereigns
–1
Running yield
Reinvestment yield
 Long duration has been stabilising investment
returns in recent years
 At current interest-rate levels, expected annual
attrition of running yield ~20bps in 2015
0
Average
maturity (years)
5
10
15
 Solid reinvestment yields without taking high risks
 In addition to long duration, ongoing geographic
diversification and cautious expansion of credit
exposure mitigating attrition of running yield
Well-balanced portfolio provides resilience against adverse capital market scenarios
1
Bubble size reflects reinvestment volume. Yield curve as at 31.12.2014.
18
Munich Re (Group) – Reinsurance – Reserving position
2
Strong reserving position – Resilience of future profits
despite adverse market conditions
Reserving approach has continuously increased
the strength of our balance sheet
Munich Re’s reserving approach –
Independent from market environment1
4
129%
128%
3
2
1
106%
Case reserves to premium
IBNR to premium
2005
96%
0
–1
2014
 IBNR to premium: Increase based on prudent
reserving strategy – reserve position at the
upper end of reasonable best estimates
new 1st
prior run-off years
 Conservative loss picks for new business …
 … facilitate offsetting favourable emergence
from older business
 Case reserves to premium:
Decrease reflects decline of reserve portfolio
duration – reduces interest-rate sensitivity
Unchanged reserving discipline usually facilitates reserve releases of at least 4%
without challenging the prudency level
1
Illustrative graph showing how reserving approach impacts new and old financial years.
19
Munich Re (Group) – Reinsurance – Reserving position
2
Actual versus expected comparison – Loss monitoring
yields consistent picture across years
Reinsurance group – Comparison of incremental expected losses with actual reported losses1
By exposure year
By line of business
10,000
10,000
Actual reported
loss
€m
Actual reported
loss
2013
2012
1,000
Motor
1,000
2011
2008
2009
100
2004 & prior
2010
Fire
Risks other property
10
10
Legend:
100
Marine
Engineering
Credit
2007
2006
General liability
Expected reported
loss
1,000
Green Actuals below expectation
Red
Actuals above expectation
10,000
Personal accident
Aviation
100
100
1,000
Expected reported
loss
10,000
Solid line Actuals equal expectation
Dotted line Actuals are 50% above/below expectations
Actual losses consistantly below actuarial expectations –
Very strong reserve position
1
Reinsurance group losses as at Q4 2014, not including parts of Risk Solutions, special liabilities and major losses
(i.e. events of over €10m or US$ 15m for Munich Re's share).
20
Munich Re (Group) – Reserves – Property-casualty – Group
2
Positive run-off result without weakening resilience
against future volatility
€m
Ultimate losses1 (adjusted to exchange rates as at 31.12.2014)
Accident year (AY)
1
Date
≤2004
31.12.2004
47,574
31.12.2005
45,334 12,845
31.12.2006
45,505 13,085 11,034
31.12.2007
45,696 13,074 10,975 12,191
31.12.2008
45,649 12,648 10,855 12,386 13,394
31.12.2009
45,255 12,607 10,652 12,296 13,639 13,192
31.12.2010
45,416 12,172 10,379 12,221 13,610 13,184 13,638
31.12.2011
45,394 11,991 10,285 12,175 13,328 12,736 13,873 17,631
31.12.2012
45,291 11,786 10,119 11,816 13,204 12,634 13,754 17,718 14,496
31.12.2013
45,246 11,710 10,156 11,599 13,024 12,637 13,845 17,400 14,348 14,479
31.12.2014
45,188 11,644 10,039 11,524 12,769 12,332 13,856 17,067 14,142 14,670 14,391
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total
Ultimate reduction
Prior-year releases of €1.2bn
driven by reinsurance portfolio
 Favourable actual vs.
expected comparison
facilitates ultimate
reductions for prior years
 Reserve position remains
strong
 AY 2014: Prudent initial
assessment
 AY 2013: Increase as
immediate reaction to
a few signs of adverse
development (agriculture,
some motor segments) to
maintain level of prudency
CY 2014 runoff change
58
66
117
75
255
305
–11
333
206
–191
–
1,213
CY 2014 runoff change (%)
0.1
0.6
1.2
0.7
2.0
2.5
–0.1
2.0
1.5
–1.3
–
0.7
Basic and major losses. 2 Thereof €1,144m basic losses (including planned unwinding of discount in workers'
compensation of –€48m) and €34m major losses.
Ultimate reduction
Reinsurance2
€1,178m
ERGO
€35m
21
Munich Re (Group) – Capitalisation
3
Economic capitalisation
€bn
Economic solvency position
Economic
solvency ratio1
ERC
AFR
153%
36.2
23.7
138%
37.2
26.9
2013
2014
 Economic solvency ratio decreased to 138%
(242% with Solvency II VaR 99.5% measure)
 Lower interest rates, weaker euro and higher
volatilities increase capital requirements
 AFR: Strong increase of IFRS shareholders’
equity largely offset by capital repatriation and
decrease of MCEV uplift
€bn
MCEV
ERGO
15.3
14.6
5.9
4.2
9.4
10.5
2013
2014
Reinsurance
Reinsurance
Again pleasing VNB (€453m) offsetting adverse
development in Australian business; positive
currency impact (€642m)
ERGO
Decline in interest rates and higher interest-rate
volatilities mainly impact German life business –
No smoothing measures applied
Economic capital position still very strong
1
2014: After announced dividend payout of ~€1.3bn for 2014 to be paid in April 2015 and outstanding share buy-backs of ~€0.3bn.
22
Munich Re (Group) – Capitalisation
3
Stringent capital management
Sound net profit
Less required capital
Strong capitalisation
Capital allocation
Subdued growth
opportunities
No intention for substantially
more investment risks
Sustainable capital
repatriation
 Currently limited opportunities
to profitably grow the business
in traditional reinsurance …
 Spreads of many asset
classes do not adequately
reflect underlying risks
anymore
 High payouts to shareholders
given muted business
opportunities and redundant
underwriting capital
 … tend to lead to lower capital
requirements for FX-adjusted
underwriting risks
 M&A prices often too high
 Sensible to hold some
capital buffer to absorb
downside risks of
macroeconomic uncertainties
Continued high payout safeguards attractive shareholder returns
23
Munich Re (Group) – Capitalisation – German GAAP (HGB)
4
Distributable earnings of parent company –
Safeguarding capital repatriation
HGB earnings financing capital repatriation
3.7
€bn
–1.3
2.0
–0.2
–1.4
2.9
€bn
Reconciliation IFRS to HGB result in 2014
3.2
–0.5
0.5
0.3
–1.4
3.0
2.0
Distributable
earnings
31.12.2013
Dividend
Share buyback
HGB result
2014
Average 2009–2014
–1.1
–0.6
Others 1
Distributable
earnings
31.12.2014
IFRS result Difference
Other
HGB result
31.12.2014 between
accounting
before
IFRS results differences
equaliof subsidiaries
sation
and their
reserves
dividend
payments to
Munich Re AG
Tax
Change of HGB result
reducing equalisation
2014
effect2 of
reserves
equalisation
reserves
Average 2009–2014
1.8
2.6
–0.9
0.2
1.9
0.0
–0.1
1.8
Solid cash at Group level – HGB earnings financing capital repatriation
1
2
Changes in restrictions on distribution.
Assuming a tax rate of 33% for Munich Re AG.
24
Munich Re (Group) – Capitalisation – German GAAP (HGB)
4
Distributable earnings of parent company –
Main drivers of HGB result
Dividends from
subsidiaries
€bn
Equalisation reserve
ILLUSTRATIVE
Max. requirement
9.1
Munich Re AG
HGB earnings
Majority of Group
earnings, including
 investment
disposal gains,
 reserve releases
(partly absorbed
by the equalisation
reserve)
6.6
HGB
result
before
equalisation
reserve
2012
7.7
2013
2014
Strengthening
2015e
2016e
Transition period
2017e
Relief
2012–2014
2014
2015–2016
2017
Strengthening of
equalisation reserve
adversely affects
HGB results
~75% of
maximum
requirement
achieved
Lower replenishments, hardly
impacting HGB
results anymore
Relief due
to drop-out
of extreme
outliers
HGB
result
Distributable earnings protected by strong reserves – Capital structure less
dependent on dividends
25
Munich Re (Group) – Summary
Strong balance sheet facilitates earnings resilience
and attractive distributions to shareholders
Financial
results
NET RESULT
€3.2bn
Investment
portfolio
ROI
Reserving
COMBINED RATIO1
3.6%
92.7%
Capital
position
1
DIVIDEND PER SHARE
+6.9%
Reinsurance Property-casualty.
Again pleasing result above annual guidance
Continued diversification of investment portfolio and
active duration management
Careful reserving protects solid balance sheet and
facilitates strong underwriting results
Strong capital position continuously built up over
years establishesg the basis for resilient profitability
26
Agenda
Munich Re (Group)
Jörg Schneider
Risk management
Bernhard Kaufmann
ERGO
Torsten Oletzky
Torsten Jeworrek
Reinsurance Life
Joachim Wenning
Backup
27
Risk management – Overview
Challenging environment for the (re-)insurance industry
Geopolitical risks
Macroeconomic challenges
(Re-)insurance market
Negative impact on local/global
economy and financial markets
 Historically low interest rates
 High competition due to
overhanging supply
 Inadequate pricing and
allocation of risks
 Subdued economic growth
may challenge growth
 Re-escalation of euro sovereign
opportunities in insurance
debt crisis possible
Economic solvency/profitability
Investments
M&A
 Negative impact from low
interest rates …
 Low bond yields
 Inadequate compensation for
risks, e.g. credit risk
 Economic environment also
driving M&A activities in
(re-)insurance market
 Munich Re does not follow
“hunt for yield”
 Continuation of very careful
assessment of M&A targets
 … partly compensated for by
hedging programmes
 Reserving assumptions and
risk-adjusted return calculation
reflect downturn in RI cycle
Munich Re well capitalised to overcome challenges – No need to adjust risk strategy
28
Risk management – Overview of changes in risk profile
Major developments at Group level
Changes in risk profile
ERC
Neutral
+
 Lower interest rates
 Weaker euro
 Weaker euro
 Premium reduction
spent for retro
Slightly higher investment risk driven by
capital markets
No major changes
No major changes
Higher diversification through more balanced risk profile
–
Property-casualty
Life and health
Market
Credit
Operational
Changes in risk profile largely driven by lower interest rates and currency –
Improved diversification
29
Risk management – Risk disclosure
Group economic risk capital (ERC) –
Breakdown by risk category
Economic risk capital – Breakdown by risk category
Risk category
Group
2013 2014
RI ERGO
2014 2014
€bn
MH
2014
Div.
2014
ERC 2013
Prop.-casualty1
9.0
10.0
9.8
0.6
0.0
–0.4
Life and health
5.8
9.0
6.2
4.8
0.5
–2.5
Market
11.6
12.5
7.5
6.7
0.0
–1.7
Life and
health
Credit2
6.3
6.7
4.8
2.0
0.0
–0.1
Market
Operational risk
1.4
1.7
1.3
0.6
0.1
–0.3
Simple sum
Diversification
Total ERC
29.6
14.7
0.6
–5.0
–10.4 –13.0 –10.1
–4.0
–0.0
–
10.7
0.6
–3.9
34.1
23.7
39.9
26.9
19.5
€bn
Development of Group ERC
23.7
Propertycasualty
+1.0
+3.2
+0.9
Credit
+0.4
Operational
+0.3
Diversification
–2.6
ERC 2014
26.9
Capital market environment driving ERC – More balanced risk profile leads
to better diversification
1
2
Credit (re)insurance included.
Default and migration risk.
30
Property-casualty risks: Natural catastrophe exposure
Munich Re (Group) – Nat cat exposure (net of retrocession)1
€bn
€bn
ERC property-casualty
AggVaR (return period 200 years)
10.0
(pre-tax)
9.0
4
Atlantic Hurricane
Storm Europe
3
2013
2014
Earthquake Los Angeles
Basic losses
2
Major losses2
9.0
Diversification
–4.6
Total
1
5.6
10.0
Main drivers for ERC increase
0
2014 2015 2014 2015 2014 2015
Atlantic
Storm
Earthquake
Hurricane
Europe
Los Angeles
Top nat cat exposures
 Weaker euro
 Premium reduction spent for
retrocession
Munich Re benefits from strong diversification between natural catastrophe risks
1
2
Exposures relate to the full year, e.g. 2015 relates to the period from 1.1.2015 to 31.12.2015.
Natural catastrophes, man made (including terror and casualty accumulation) and major single losses.
31
Life and health risks
€bn
ERC life and health
 Increase mainly driven by
lower interest rates
 Higher present value of
liabilities
 Higher impact of lapse
and policyholder
behaviour
9.0
5.8
2013
2014
5.5
Longevity
2.4
5.1
Mortality
Health
4.2
2.6
0.8
0.8
Reinsurance Life
 Increase mainly driven by
FX and lower interest rates
 Higher present value of
euro liabilities
 Model enhancements
(e.g. Australian disability)
Longevity
 Highly sensitive to interest rates – long duration of liabilities
 Primary life: risk further increased (shareholder’s perspective) by:
3.8
Morbidity
ERGO Life/Health
2014
2013
 Reduced risk-mitigating buffers
 Higher value of policyholder options
 Higher impact of lapse and policyholder behaviour
 Reinsurance Life: higher exposure due to new business
Increase in life/health economic risk capital largely driven by lower interest rates
32
Risk management – Evolution of Group‘s market risk profile
Evolution of Group’s market risk profile
ERC contribution (undiversified) %
Real estate
Currency
75%
€bn
Market risk
12.5
50%
7.0
25%
0%
Q4
09
Q1
Q2 Q3
2010
Q4
Q1
Q2 Q3
2011
Q4
Q1
Q2 Q3
2012
Q4
Q1
Q2 Q3
2013
Q4
Q1
Q2 Q3
2014
Q4
2009
General interest rate
Credit spread
Equity
Market risk dominated by
general interest-rate risk
Expansion of equity1 and credit exposure,
tightening spreads and recovery of equity
markets – strict ALM mitigates interest-rate risk
Further alignment of risk
categories
2014
Increase mainly driven
by changing capitalmarket environment
€m
DV01 – Sensitivity to parallel shift of yield curve by one basis point reflecting portfolio size
Reinsurance
ERGO
60
140
Asset-liability mismatch
40
20
0
2012
2013
Fixed-income
assets
Economic
liabilities
2014
Asset-liability mismatch
120
100
80
2012
2013
2014
Despite substantial decrease in interest rates, duration of assets and liabilities
remains closely matched
1
Equity risk also includes alternative investments, such as investments in infrastructure.
33
Risk management – Capital position
Composition of available financial resources (AFR)
and economic earnings
€bn
AFR development in 2014
AFR
31.12.2013
Capital
management
and other
Economic
earnings
AFR
31.12.2014
38.2
–2.6
3.2
–1.3
–1.4
+0.1
Dividend
Share buy-back
Other1
Economic effects
Equity
1.4
Credit
0.2
Currency
1.4
Interest rate
Technical result
and new business2
Positive FX effects
and gains in equities
partly compensated
for by decreased
interest rates
0.8
–1.0
1.8 P-C
Other3
~0
Economic earnings
3.2
38.8
Good technical result
Life reinsurance
Pleasing VNB: €0.5bn
Tax relief from prior
years largely offset by
model enhancements
Sound economic earnings supported by good technical result
1
Hybrid capital replacement and other.
Includes unwinding of market value margin, p-c result, life VNB, experience variances, assumption changes.
3 Investment return on AFR, MCEV model changes and tax effects.
2
34
Risk management – Munich Re’s performance 2007 to 2014
Strong increase in AFR in recent years
despite capital repatriation
AFR development 2007–2014
30.9
+4.2
–17.1
+20.8
€bn
38.8
€bn
Economic earnings
Confidence2
4.2
~30
–6.3
~99
6.0
~10
3.6
~50
–1.2
~90
7.1
~10
4.2
~40
3.2
~50
2007
2008
2009
2010
2011
2012
2013
2014
€bn
Munich Re market capitalisation
AFR
31.12.
2006
AFR
Capital Economic
restate- mgmt. and earnings
ments
other1
AFR
31.12.
2014
29.9
–16.4
+15.2
28.7
Market cap.
31.12.2006
Capital
management3
Share price
variation
Market cap.
31.12.2014
Strong economic performance in difficult environment – Economic earnings
not matched by share-price performance
1
2
Dividends, share buy-back, hybrid capital replacement and other.
Probability of achieving at least corresponding economic earnings.
3
Dividends, share buy-back.
35
Risk management – Munich Re's proven risk strategy at work
Strong capitalisation allowing for attractive capital
repatriation
Munich Re actions1
ESR1 – Sensitivity
Munich Re solvency ratio (ESR)
%
%
>120%
Excellent capitalisation
MRCM
Solvency II
Interest rate
+100bps
100%–120%
Comfortable capitalisation
80%–100%
Adequate capitalisation
Actual
solvency ratio
120%
210%
100%
175%
80%
140%
<80%
Below target capitalisation
 Risk transfer
 Scaling down of activities
 Raising of (hybrid) capital
1
2
3
138
Solvency I ratio
 Capital repatriation
 Increased risk-taking
 Holding excess capital to
meet external constraints
 Tolerate and monitor
 (Partial) suspension of
capital repatriation
Ratio as at
31.12.14
Interest rate
–100bps
117
Spread
+100bps
119
Equity
markets +30%
Equity
markets –30%
100%
MCR3
2008 2009 2010 2011 2012 2013 2014
Based on Munich Re capital model (MRCM): 175% of VaR 99.5%.
Based on 200-year event.
MCR = minimum capital requirement, typically between 25% and 45%; for groups, called "Group SCR floor".
155
FX –10%
Atlantic
Hurricane2
145
131
138
130
36
Risk management – Capital position
Summary of economic capital disclosure
€bn
Solvency ratio as at 31.12.2014 (31.12.2013)
Internal model1
Available
financial
resources2
Economic
risk capital
Solvency II Value-at-Risk measure (VaR 99.5%)
37.2
138%
(153%)
26.9
Available
financial
resources2
SCR /
VaR(99.5%)
37.2
242%
(267%)
15.4
Solvency ratios under Solvency II
 No major effect on Group solvency ratios expected from shift from AFR to basic own funds
(e.g. contract boundaries, surplus funds, SII yield curves) and final adjustments on internal model
(e.g. tax, fungibility, SII yield curves)
 Property-casualty and health EEA legal entities: in general well capitalised
 Solvency ratio of life EEA legal entities: under pressure due to capital market environment
Capitalisation of Munich Re (Group) expected to remain very strong in the
Solvency II regime
1
2
After announced dividend payout of ~€1.3bn for 2014 to be paid in April 2015 and outstanding share buy-backs of ~€0.3bn.
37
Risk management – Internal model
The internal model of Munich Re properly reflects the
diversified business model of global reinsurance
Munich Re’s internal model developed for internal management reporting of business
 Group solvency capital calculated with the internal model covering the risks of
all legal entities in Munich Re (Group) on the basis of consolidated accounts
 Solo solvency capital of reinsurance entities in EEA based on internal model
that properly reflects the specifics of the diversified reinsurance business model
 Munich Re intends to apply the standard formula for most primary insurance
legal entities (e.g. ERGO Leben, ERGO Austria, DAS UK, …)
SII approval process of Munich Re’s internal model
Other applications of Munich Re’s internal model
 Extensive pre-application phase with BaFin
concluded
 The internal model is applied for the Swiss
Solvency Test of New Re
 Trial application submitted in October 2014
 Use of internal model by S&P in determining
the target capital for rating (“M factor”)
 Official application for the approval of the
internal model expected in Q2 2015
Munich Re’s risk management is highly sophisticated –
Assessed “very strong” by Standard and Poor’s, the highest level in the industry
Group internal model
Internal model applied to legal entity (Germany: Munich Re,
DKV, ERGO Property-casualty, D.A.S., ERGO Direkt)
Standard formula applied
at solo level
38
Risk management – Summary
Key takeaways
Risk
profile
No active changes in risk strategy – Changing risk profile driven by
capital-market environment
Profitability
Economic earnings are in line with expectations for a “normal” year
Solvency
position
Despite low interest-rate environment, ESR expected to remain very
strong in the Solvency II regime
Business
strategy
New business opportunities due to tailor-made solutions supported
by sophisticated risk management and risk modelling
39
Agenda
Munich Re (Group)
Jörg Schneider
Risk management
Bernhard Kaufmann
ERGO
Torsten Oletzky
Torsten Jeworrek
Reinsurance Life
Joachim Wenning
Backup
40
Business field ERGO – Key financials
Business field ERGO – Key financials
€bn
Gross premiums written
16.7
16.7
3.5
3.2
3.8
10.0
9.8
408
2013
%
96.7 95.3
98.7 97.3
Germany
International
Improvements in German and
international business
Original result of ERGO Group.
German and international business.
Major result drivers
Life/Health Germany: Several
net positive one-offs (e.g. tax
refund, swaptions in life)
P–C Germany: Sound
underwriting performance
169
2014
P-C: Combined ratio
2
620
3.1
2013
1
€m
Net result
2014
ERGO
20141
€bn
Life and health: MCEV2
International: Improved
underwriting result, goodwill
impairment of €440m in 2014
%
5.9
4.2
2013
2014
Sharp decline of interest rates
and higher interest-rate volatilities
3.6
3.9
2013
2014
Swaptions offsetting declining
regular income
41
Business field ERGO – Life/Health Germany
Low interest rates leave their mark on German life
business
€m
Life
3,553 (36%)
(▲ –4.1%)
€m
Net result
Health
5,250 (54%)
(▲ –0.7%)
269
158
Direct
1,009 (10%)
(▲ +1.6%)
2013
2014
Life
Health
Direct
 Total premiums:
€4,363m (–3.8%)
 Growth in supplementary
insurance
 Total premiums:
€1,117m (–3.4%)
 Lower regular premium
business
 Lower premium income in
comprehensive insurance
 Comprehensive management
of back-book to fulfil guarantees
 Moderate price increases as
at 1 April 2014: Ø 0.8%
(2015: 1.9%)
 Significantly lower singlepremium capitalisation business
in direct life (–€55m)
 Dental insurance remains driver
of growth in direct health
42
Business field ERGO – Life Germany
New business: Shift to less interest-rate sensitive
products
Target portfolio – New business APE – Plan 2016+
%
Target portfolio (incl. new life product)
Thereof new life product
Shift new business to target portfolio
Target portfolio
 Unit-linked insurance (with/without guarantee),
term insurance, occupational disability
insurance, death benefit, immediate annuities
 To represent >80% of new business from 2016
30
41
New life products
 Share in non-subsidised private pensions1:
67% in 2014
 Extension to corporate pensions since
January 2015
54
84
70
59
46
16
2010
1
2012
2014
 Guarantee in new business down to 1.25%
since January 2015
 Demand expected to decline in low-interestrate environment
2016e
3rd layer in German pension system: non-subsidised private pensions
43
Declined reinvestment yield still with low impact on
average yield …
Key figures1 (German business)
Average yield above average guarantee
 Long duration of fixed-income portfolio keeps
average yield at relatively high level
Reinvestment
yield
Average
yield
Average
guarantee
2014
~2.6%
~3.6%
~3.0%
 Duration gap below one year
2013
~2.7%
~3.6%
~3.2%
2012
~3.1%
~3.8%
~3.2%
 Non-interest-bearing additional interest reserve
(ZZR) reduces average guarantee
 Life reform in Germany as a net positive –
limitation of unjustified policyholder participation
in unrealised gains
 Disciplined lowering of bonus rates:
2.7% vs. market average 3.2%
Average yield vs. average guarantee
4%
ILLUSTRATIVE
3%
2%
avg. yield
avg. guarantee
1%
2013
1
2018
German GAAP figures for ERGO Leben, Victoria Leben and ERGO Direkt Leben.
44
… while measures to support guarantees have
financial impact in 2014
ZZR reference rate – Projection1
Guarantee level
4.25
4.00
4.00
ZZR – Low interest rate reserve
ILLUSTRATIVE
4.10
%
Reference rate
Increase
Stable
Decrease
3.75
3.50
3.25
3.25
3.15
3.00
Interest-rate hedging programme
2.75
2.75
2.50
2.25
2.25
2.00
1.75
1.75
1.50
1.25
1.25
1.00
2010
2012
Key financials2
2014
 Local GAAP reserve against low interest rates
 Expected accumulated ZZR in 2015: ~€2.4bn
 Partly financed from unrealised gains –
positive impact on IFRS earnings when realised
 Effect on IFRS net income in 2014: €36m
2016
2018
 Started in 2005 – Protection against
reinvestment risk via receiver swaptions
 Continuous buying of additional slices depends
on capital market and portfolio development
 Annual performance costs: ~10bps
 Current annual additional yield: ~22bps
 Effect on IFRS net income in 2014: €88m
Free RfB Terminal bonus fund
Unrealised gains
Accumulated ZZR
2014
€0.9bn
€1.6bn
€13.9bn
€1,541m
2013
€0.8bn
€1.9bn
€5.6bn
€816m
2012
€0.9bn
€2.0bn
€8.1bn
€415m
1
2
Based on interest-rate scenarios.
German GAAP figures for ERGO Leben, Victoria Leben and ERGO Direkt Leben.
45
Business field ERGO – Property-casualty Germany
Property-casualty Germany – Successful business
Premium breakdown by lines of business
Other
311 (10%)
€m
Accident
672 (22%)
156
Legal
protection
400 (13%)
Liability
534 (17%)
TOTAL
€3,115m
€m
Net result
Combined ratio
176
96.7
Motor
666 (21%)
Fire/property
532 (17%)
95.3
2013
2014
Highlights
Profitability further improved
 New insurance solution to protect homeowners
in flood-prone areas
 Profitable portfolio pays off
 Low interest rates affect markets – reduced
demand, increased competition
 Commercial/industrial business: ERGO steps up
cross-border activities
%
2013
2014
 2014 with low nat cat burden – storm Ela with
relatively low impact
 Portfolio restructuring visible after high impact
from flood and hailstorms 2013
 Profitability protected by solid reserve position
46
Business field ERGO – International
Good profitability due to strong
technical improvements in recent years
€m
Gross premiums written/Total premiums
Total premiums
Combined ratio
%
104.5
4,381
4,213
4,120
3,876
3,917
3,809
3,728
3,508
99.8
98.7
97.3
2011
2012
2013
2014
2011
€m
Net result
150
164
94
10
–50
–139
2009
2010
2011
2012
2013
–276
2014
2012
2013
2014
Highlights
 Strong improvement of combined ratio – reserve
releases in Greece and the Netherlands in 2014
 Decrease of premium levels until 2013 due to
strong focus on profitability – in 2014 resumed
growth, mainly in life
 Goodwill impairment due to new segmentation –
pleasing adjusted net result of €164m in 2014
2014
(adj.)
47
International property-casualty – Pleasing premium
development and profitability
€m
2,288
2,198
2,184
549
451
484
626
649
652
Legal
293
225
232
Turkey
820
873
816
2012
2013
2014
Other
Poland
Combined ratio
130
120
110
100
90
80
70
60
Organic development
 Poland: Strong, profitable position despite softening
market
 Turkey: Turnaround in 2014, now showing gradual
premium growth again
 Legal protection (LPI): Focus on roll-out of
additional LPI-related services, e.g. debt collection
 Overall strategic initiatives: Set-up and expansion
of sales channels in existing markets – Examples:
 Slovenia/Croatia: Development of agency channel
 Baltics: Expansion of bank sales
 Several countries: Expansion of direct sales
%
Poland
Legal prot.
Baltics
India
Turkey
Greece
2012
2013
2014
Green-/brownfields, M&A and joint ventures (JV)
 Vietnam (35% participation): Market entry in 2011
(particip. 25%, increase in 2013) through acquisition
of GIC – focus on organisational restructuring and
growth initiatives to exploit full market potential
 Singapore: Market entry and integration in 2014
through acquisition of SHC – focus on development
as regional hub for expansion in Southeast Asia
 India (26% participation): Ongoing profitable growth
– number 4 in private sector
48
International life – Premium growth driven by singlepremium business in Poland
€m
Total premium
1,832
2,029
1,678
475
177
453
130
365
607
564
614
528
531
575
2012
2013
2014
520
Other
Poland
Austria
Belgium
€m
New business value and margins1
85
59
43
2.8%
2012
1
2013
 Poland: Strong increase in bancassurance, positive
one-offs in new business
 Austria: Increased single-premium business
 Belgium: Introduction of an innovative alternative
guarantee product in 2015
 New business
 Active management of new business profitability
 Drive initiatives towards alternative guarantee
concepts and biometric products
 In-force
 Low interest rates challenging back-book
 Active portfolio management, e.g. interest-rate
hedging, low bonus rates
Green-/brownfields, M&A and joint ventures (JV)
6.9%
4.8%
Organic development
2014
Value of New Business (VNB)/Present Value of New Business Premium (PVNBP).
 China (50% participation): Further develops the
successfully started JV, focus on expanding agency
channel – total premiums after 11 months of
operation: ~€4.5m, ambition: ~€600m in 2024
 India (26% participation): Regulatory approval of JV
expected in Q2 2015 – premium ambition: ~€800m
in year 10
49
Business field ERGO – Development and innovation
Continuously develops new solutions
for customers’ needs
Products
Sales
Customer services
 Life: Extension of new life
product concept to corporate
pensions – similar product
concept to be introduced in
international markets
 Health: Further development of
portfolio in corporate and longterm care insurance
 Property-casualty:
 Exploration of niche business
in Germany
 Micro-insurance product
weather insurance (HDFC
ERGO, India)
 Set-up of Direct Sales
Competence Center to improve
ERGO Germany’s
attractiveness for hybrid
customers
 Improve cross-selling on
existing tied-agent customer
base via targeted mailings
 Increase online sales
 Online CRM and sales support
tool (ERGO Hestia, Poland)
 Further develop COOorganisation – enhance
efficiency and process quality
 Develop additional online and
mobile service
 “Office in the bag” – mobile
office including on-the-spot
policy issuance in rural India
(HDFC ERGO)
50
Business field ERGO – Development and innovation
ERGO proceeds the digital route
Website
Mobile
Innovation
 ERGO website rankings among
German insurance websites1
 ERGO: #1
 ERGO Direkt: #3
 DKV: #5
 12 products available online
 €35m in new business online
in 2014
 Multiple features like
 Tariff check (DKV)
 Claims management
evaluation (ERGO Direkt)
 LawOnTheWeb (DAS UK)
 Digital signature (ERGO Direkt)
– pilot for fully digital sales
process without media
discontinuity
 ERGO customer app: mobile
insurance file
 Claims app (DKV)
 Driver’s assessment app
(ERGO Baltics)
 Loss adjuster management app
(ERGO Hestia, Poland)
 ERGO Digital Lab in Berlin
since 2013
 Cooperation with Axel Springer
Plug and Play accelerator
 Cooperation with online
business models (i.e. Amazon,
audibene, …)
Source: AMC study “Die Assekuranz im Internet” (German insurers on the internet), November 2014.
Photo: Axel Springer Plug and Play.
1
51
Business field ERGO – Summary
Key takeaways
ERGO
Operating business on track, result distorted by goodwill impairment,
mid-term net earnings target remains ~€600m
Life/Health
Germany
Shift to target portfolio well on track, challenges from low-yield
environment
Property-casualty
Germany
Profitable book, combined ratio: 95.3%;
Target: ~93%
International
Measures to restore profitability successful, combined ratio: 97.3%;
Target: ~97%, additional growth mainly in international life
52
Agenda
Munich Re (Group)
Jörg Schneider
Risk management
Bernhard Kaufmann
ERGO
Torsten Oletzky
Torsten Jeworrek
Reinsurance Life
Joachim Wenning
Backup
53
Reinsurance
Reinsurance – Key financials
€bn
27.8
10.8
26.8
2.8
2.9
0.4
0.4
16.7
2013
2014
P-C: Combined ratio
%
92.7
2013
2014
Underlying combined ratio ~98%
in 2014
2.4
2.5
2013
2014
P-C: Slight deterioration in
combined ratio (large loss ratio:
7.2%, reserve releases: 5.3%) –
low tax burden
€m
Life: Technical result
359
280
2013
2014
Losses in Australian disability
and US recapture settlement
Major result drivers
Life: Technical result below
annual target of ~€400m –
tax refund
10.0
17.0
92.1
€bn
Net result
3.1
%
3.1
2013
2014
Disposal gains compensating
for losses on derivatives
54
Reinsurance Property-casualty – Munich Re a Tier-1 reinsurer
Munich Re – Reinsurance market leader in excellent
position to successfully manage the soft cycle
Broadest
geographic reach
 Presence in all markets, with offices in 36 countries1
 Portfolio of risks originating in more than 160 countries
Preferential
client access
 ~50% of business2 with differential terms/private placements
 2/3 of business is direct client business
Leading risk
know-how
 ~30% of business2 with complex tailor-made solutions
 Strong service and innovation track record
Superior
diversification
 Well-balanced, highly diversified reinsurance portfolio
(perils, forms of cover, long-/short-tail, regions)
Risk Solutions generating
strong earnings
 Excellent profitability, largely detached from reinsurance cycle
 With €4bn premium larger than p-c reinsurance portfolios of
several Top-10 peers
We have the scale, know-how and client access to flexibly shape our portfolio,
attract high-quality business and generate sustainable results throughout the cycle
1
2
Subsidiaries and branches; including Munich Health’s reinsurance activities in the health market as at 31 December 2014.
In January 2015 renewals.
55
Reinsurance Property-casualty – January renewals 2015
Munich Re relatively resilient to pressure on rates
and firm on terms and conditions
Current market developments
Rate changes 1 January 2015
%
Stringent management of terms and conditions
 Increasing demand for non-standard terms and conditions –
especially in property
 Munich Re’s response
No concessions on “vague” or “expansive” wording, but tailormade offers based on highly differentiated risk modelling2
Europe/Latin America
0
–20
Non-standard terms and conditions not a weakening per se,
but require sophisticated underwriting skills
Asia-Pacific
Demand-driven tiering of reinsurers
–20
 Access to scale, security, diversification and service
 Reduction of counterparty risk and complexity of RI panels
US/Global accounts
 Change in demand towards tailor-made solutions and larger
placements with major, best-rated reinsurers
 Rising importance of long-standing relationship with reinsurer
–20
Property Property Casualty Casualty
prop.
XL
prop.
XL
Market range1
1
2
Munich Re
Munich Re continues with its strong underwriting
discipline and accepts volume decreases
Range of market rate changes in 1 January 2015 renewals published by brokers, media and observed by own experts.
For example, multi-line covers, inclusion of emerging risks.
56
Reinsurance Property-casualty – January renewals 2015
Sound portfolio profitability maintained
Munich Re portfolio – Premium change in major business lines
Total
Business line
Premium split1
Price
change
Volume
change
€9.4bn
~ –1.3%
–9.5%
Property
Prop.
XL
28%
10%
–0.7%
–6.4%
Casualty
Prop.
XL
39%
4%
–0.2%
–2.2%
–12.7%
–14.7%
–3.0%
Specialty lines
Marine
Credit
Aviation
11%
6%
2%
–1.7%
–1.8%
0.0%
0.2%
–8.6%
–22.1%
–14.0%
Price change
Volume change
 Property XL under greatest pressure due to
declining nat cat rates
 Proportional business almost stable, benefitting
from flat to slightly improving primary rates
 Active cycle management in property (e.g. nat cat)
and marine (e.g. offshore energy)
 Further impact from higher retentions (credit) and
non-renewal of solvency relief transactions (China)
 Both effects accounts for ~50% each
Profitability supported by consistent cycle management, a well-diversified portfolio
and strong client relationships
1
Relative premium share in relation to total renewable business in January.
57
Reinsurance Property-casualty – Renewal outlook
Upcoming renewals to take place in a continuously
challenging market environment
Total p-c book1
%
Treaty business
January
Remaining
26
January2
57
April
Worldwide
Rest of Asia/
Pacific/Africa
Worldwide
July
Rest of
Asia/Pacific/Africa
Worldwide
Rest of Asia/
Pacific/Africa
Europe
NA3
TOTAL
€17bn
July
12
April
5
Nat cat share: 14%
Bulk of business
renewed in January
– more than 75% of
treaty business
LA4
TOTAL
TOTAL
€9.4bn
€0.8bn
Europe
Japan
Europe
TOTAL
LA4
NA3
€2.1bn
Australia/
New Zealand
LA4
NA3
Focus: Europe
Focus: Japan
Focus: USA, LA, Australia
Nat cat share: 11%
Nat cat share: 41%
Nat cat share: 21%
 Slightly negative price  Capacity and competition expected to remain high
change of ~1.3%
 Due to the higher nat cat shares, overall pricing trend
 Stringent management
will largely depend on nat cat prices
of terms and conditions
Clear focus on profitability to maintain portfolio quality
1
2
3
Approximation – not fully comparable with IFRS figures.
Includes Risk Solutions business (11% of January business or 6% of total p-c book).
NA = North America. 4 LA = Latin America.
58
Reinsurance Property-casualty – Portfolio quality
Munich Re set-up supports sustainable earnings level
% 1 Traditional
Total p-c book
Risk
Solutions
Tailor-made
solutions
25 (24)
% 2 Risk Solutions
%
Nat cat XL
Casualty
Other
American Modern
10 (12)
45 (40)
22 (19)
23 (23)
Watkins
Hartford
Steam
Boiler
18 (18)
TOTAL1
TOTAL
€17bn
€13bn
TOTAL
10 (12)
€4bn
17 (18)
Other
traditional business
Other property
57 (58)
34 (36)
Specialty2
11 (12)
 Stable and well-diversified
portfolio
 Cycle management mitigates
price pressure
 Risk Solutions and tailor-made
solutions less impacted by
market terms
 Shift from nat cat XL and other
property to casualty
Specialty
markets
13 (12)
Corporate
Insurance Partner
15 (16)
 Continued expansion of US
specialty primary business
where rates are still increasing
 Deliberate reduction at
more cycle-exposed units
(e.g. Watkins)
Superior diversification provides flexibility in managing the portfolio
1
2
Gross premiums written property-casualty reinsurance as at 31.12.2014 (31.12.2013).
Aviation, marine and credit.
59
Reinsurance Property-casualty – Traditional portfolio
1
Disciplined underwriting and active portfolio
management secure technical profitability
Traditional p-c portfolio 2014
Aviation
1 (2)
Casualty motor
26 (24)
%
Proportional
70 (68)
Facultative
10 (10)
Agro
7 (8)
TOTAL1
TOTAL1
€13bn
€13bn
Marine
5 (5)
Credit
5 (5)
Casualty
non-motor 19 (16)
XL
20 (22)
Active portfolio shifts
Share increases
 Profitable casualty lines
(motor and non-motor)
 Less volatile proportional
book (with rates broadly
flat to slightly increasing)
Share reductions
 Deliberate cancellations
and reductions in property
 Property nat cat XL share
further reduced to 10%
Property nonProperty
nat cat XL 27 (28) nat cat XL 10 (12)
Traditional portfolio continues to be well diversified – Shift towards proportional
casualty increases resilience
1
Traditional reinsurance incl. tailor-made solutions premium. Allocation based on management view,
not comparable with IFRS reporting. Gross premiums written 2014 (2013), FY view.
60
Reinsurance Property-casualty – Traditional portfolio
1
Challenging market environment counterbalanced
by active cycle management
High
Traditional p-c portfolio – Outlook 20151
ILLUSTRATIVE
Property
nat cat XL
 Largely stable profitability and
business volume in casualty
Pricing pressure
Aviation
Marine
Casualty
without motor
Credit
Low
Economic profitability
 High share of proportional
business – benefitting from flat to
slightly improving primary rates
 High share of tailored solutions –
less impacted by market terms
 New business generation –
largely compensates for
scheduled expirations of
some large treaties
Motor
Austria
Low
Property
without
nat cat XL
 Pressure on profitability mitigated
by deliberate volume reductions
High
Profitability of traditional portfolio is still meeting hurdle rate and comfortably
exceeding cost of capital
1
Bubble size reflecting gross premiums written as at 31.12.2014 (grey) – Outlook 2015 (blue). Traditional reinsurance only.
61
Reinsurance Property-casualty – Traditional portfolio – Property nat cat XL
1
Market environment continues to be challenging
High
Property nat cat XL portfolio – Outlook 20151
ILLUSTRATIVE
Pricing pressure
North America2
Europe
 US business continues to be most
exposed to pricing pressure –
profitability has declined below
hurdle rate
LA/Caribbean/
Rest of
world
 All other regions somewhat less
affected – profitability still at
satisfactory levels
 Munich Re remains an
indispensible partner for clients –
large nat cat capacity, multi-line
covers, reinstatements etc.
Low
Asia/Australia
Low
Economic profitability
 Environment remains challenging –
abundant nat cat capacity and
continuous pressure on rates
High
Nat cat portfolio actively managed to counterbalance negative impact
from high pricing pressure
1
2
Bubble size reflecting gross premiums written as at 31.12.2014 (grey) – Outlook 2015 (blue). Traditional reinsurance only.
Incl. worldwide business.
62
Reinsurance Property-casualty – Traditional portfolio – Casualty
1
Shift towards casualty while maintaining strict
bottom-line orientation
Traditional portfolio – Deliberate and active management of casualty portfolio
Casualty premium1
€bn
5.4
Other
Liability
(complex)
4.1
Growth in proportional
motor business –
Specific know-how and
strong client orientation
 Expansion of strategic partnerships and
tailor-made solutions/capital-relief transactions
 New business generation by supporting special
business models (start-ups/underperformers)
 Know-how transfer through worldwide knowledge
networks and consulting units, e.g. MCU2
Reduction of specific
long-tail business
(e.g. non-prop. motor )
 High risk of change in severe bodily injury
markets, e.g. France, Germany, UK
Liability developed
towards highly complex
risks (e.g. industrial
liability, professional
indemnity, D&O)
 Attractive margins – expertise-driven high
entry barriers
 Core competence in accumulation management
 Highly developed risk and underwriting know-how
 High capacities offered
Remaining
liability
Non-prop.
motor
Proportional
motor
2008
2014
Achieving profitable growth through deliberate portfolio shifts
1
2
Underwriting year. Management view, not comparable with IFRS reporting.
Motor Consulting Unit.
63
Reinsurance Property-casualty – Traditional portfolio – Casualty
1
Increased casualty share results in higher combined
ratio but supports overall profitability
Change in business mix impacts combined ratio…
45%
Casualty share1
…but higher combined ratio is economically justified
105%
40%
100%
35%
95%
30%
90%
2010
2008 2009 2010 2011 2012 2013 2014
 Profitable growth of traditional casualty
 Ability to write complex risks
 Access to attractive business (strong client
relationships)
 Deliberate increase of casualty share leading
to a mix-driven overall higher combined ratio
Pricing combined ratio2
2011
2012
2013
2014
 Pricing expectation has remained quite stable
 Casualty economically more profitable (lower risk
capital requirements, higher discounting effects)
despite higher combined ratios than in property
 Partially written in countries and currencies with
higher interest rates
Casualty business is an important contributor of value added, providing stable
economic results
1
Underwriting year. Management view, not comparable with IFRS reporting. 2 Underwriting year.
64
Reinsurance Property-casualty – Risk Solutions
2
Risk Solutions – Sound results provide additional
stability to total p-c book
Gross earned premiums1
Share of Risk Solutions
in % of total p-c book
3.4
3.4
3.8
4.0
€bn
Combined ratio1
%
Share of Risk Solutions
42
in % of total p-c book
94.1
4.2
89.6
32
90.8
26
88.6
2.9
0.7
87.9
21
24
22
23
24
0.5
25
2009 2010 2011 2012 2013 2014
€bn
Underwriting result1
83.8
2009 2010 2011 2012 2013 2014
0.3
0.3
0.5
0.2
2009 2010 2011 2012 2013 2014
Drivers in 2014
 Successful expansion through acquisition of Australian MGA Calliden
 Strong bottom-line driven by low major losses and reserve releases –
highest result contribution from US Special entities
Continuous investments
to reap further organic
growth potential
Increasingly valuable business segment with strong premium growth
and bottom-line contribution
1
Management view, not comparable with IFRS reporting.
65
Reinsurance Property-casualty – Alternative risk transfer
Broad leverage of alternative risk transfer –
Continued strong Munich Re footprint in 2014
Alternative risk transfer solutions
Eden Re I renewal1
Eden Re II launch1
Successful renewal of
initial placement in 2014
at increased capacity in
2015 (US$ 75m)
Additional special
purpose vehicle
provides US$ 290m
cat XL capacity in 20151
MR retrocession – Protection per nat cat scenario2
€m
1,500
1,200
900
600
300
0
2011
2012
Australia Cyclone
2013
2014
US Windstorm NE
Strategic advantage
Retrocession use reflects
 Combining Munich Re’s peak risk competence
and client access with institutional investors’
interest in reinsurance risk
 Benefits from favourable market terms
 Strong Munich Re capital base
 Taking advantage of new sources of capital
for clients and Munich Re’s own book
2015
US Windstorm SE
Munich Re ILS service for 3rd parties
 Completes our offer as customised stand-alone
service or integrated in traditional solutions
Large repertoire of instruments optimises Munich Re’s capital structure and
embraces institutional investors in a mutually beneficial long-term partnership
1
2
Munich Re structured and arranged both transactions.
Including indemnity retrocession, ILW/derivatives, risk swaps, cat bonds and the sidecars Eden Re I+II. Selection of main scenarios.
66
Reinsurance Property-casualty – Product innovation
Strategic development of innovative business –
Growing and profitable share in Munich Re’s portfolio
Creating solutions for new and emerging risks
Rising demand for innovative business solutions
Technology
 Cyber risks
 Energy risks
 Supply chain risks
 Non-damage business interruption
Environment
 Climate change
 Weather events
 Water crisis
Munich Re well positioned
Dedicated specialised business units
 Special Enterprise Risk
 Financial & Enterprise Risk
 HSB Strategic products
 Munich Re Weather & Commodity Risk Holding
Innovation initiatives across all business units
Society
 Contentious
diseases
 Rising cost of
medical treatment
 Reputational risks
Politics
 Regulatory changes
 Global governance
failure
 Political and social
instability/conflicts
Continuous product innovation – Examples
 Solutions for broad range of cyber risks
 Space – launch + life cover for satellites
 Reputational risk cover
 Project cost insurance for construction risks
Tapping new profit pools by expanding existing market boundaries with
innovative products and services
67
Reinsurance Property-casualty – Product innovation – Cyber (re-)insurance
Cyber (re-)insurance – Prudent and profitable growth
through innovation and profound risk control
Cyber portfolio – Premium split 2014
Reinsurance
First mover
and market leader
 More than 10 years of
expertise in reinsuring cyber
portfolios and large risks
 Sophisticated accumulation
models (e.g. virus, cloud,
critical infrastructure)
Primary insurance
Specialised single-risk taker
for a broad range of cyber risks
Reinsurance
45%
Primary insurance
55%
TOTAL
US$ 135m
 Close cooperation with cedents
(e.g. product development in
undeveloped cyber markets)
 Hartford Steam Boiler
Established player in US
market for cyber liability and
privacy covers for SMEs and
individuals
 Corporate Insurance Partner
Industry-specific as well as
tailor-made solutions for large
clients; broad scope of cover
and larger-than-average limits
Continuous product innovation – Recent launches
HSB CyberOneTM
Cyber gap cover (energy)
15-component Digit@ll-toolbox1
Creating cyber solutions to serve the growing demand of our clients –
Munich Re with leading-edge expertise and strong market presence
1
Underwriting framework for the coverage of 15 different cyber-related risks (e.g., privacy breach, cyber extortion,
technology errors & omissions).
68
Reinsurance Property-casualty – Summary
Key takeaways
Financial
results
Strong operating profitability – combined ratio once again beats target and
investment income proves resilient, low tax rate
Traditional
portfolio
Disciplined underwriting and active portfolio management safeguards
profitability – clients highly value our proposition as a big, diversified reinsurer
Risk
Solutions
Successful expansion of Risk Solutions at excellent profitability
Outlook
Sound portfolio profitability maintained in January renewals, market
environment remains challenging – combined ratio target 2015: ~98%
69
Agenda
Munich Re (Group)
Jörg Schneider
Risk management
Bernhard Kaufmann
ERGO
Torsten Oletzky
Torsten Jeworrek
Reinsurance Life
Joachim Wenning
Backup
70
Reinsurance Life – Overview
Pleasing new business value generation
€m
Operating MCEV earnings
1,109
939
751
2010
2011
2012
369
322
2013
2014
1 VNB
643
475
2010
2011
573
2012
577
2013
1
2
3
4
453
63
–131
–361
297
322
Value of new business
Experience variances
Assumption changes
Other operating variance
Expected return
2 Experience
variances
453
2014
Aggregate in mortality and morbidity
somewhat better than expected
3 Assumption
changes
Solid VNB from traditional business,
particularly in North America
4 Other
operating variance
Negative values in 2014 including valuation and
model updates on Australian disability business
New business value at sustainably high level
71
Reinsurance Life – Overview
IFRS result short of expectations –
Income strain from Australia and US
€m
IFRS key figures
Other
Morbidity
Mortality
7,901
2010
9,481
2011
11,130 10,829 10,040
2012
2013
420
359
280
79
2010
2011
Fee income
12
2010
2012
2013
58
51
2012
2013
2014
63
26
2011
Expectation 2015
 Negative currency effects
 Some large transactions expired or were
only renewed at reduced shares
Premium trend
dependent on
large transactions
 Strain from recapture settlement in US and
new valuation in Australia
 Solid contribution from other main markets,
esp. Canada, UK, Cont. Europe and Asia
 US mortality in line with expectations at
year-end 2013
Continue to
strive for a runrate of ~€400m
 Fee income from business that does not
meet IFRS risk transfer has developed into
a stable and growing contributor to the
bottom-line
Fee income
continues to
support net
earnings
2014
Technical result
354
Main effects 2014
2014
72
Reinsurance Life – Performance assessment
Current state of the major markets
Region
VNB
IFRS profit Comments
Canada
 Very satisfactory development of new business and results
 However, environment is becoming more challenging
USA
 High new business value with attractive risk-return profile
 Bottom-line depressed by recapture settlement and recalibrated mortality
expectation for some legacy business
UK
 High competitive pressure in protection business
 Results from in-force portfolio continue to be very healthy
Australia




Asia
 Very satisfactory development of new business and results
 However, environment is becoming more challenging
Continental
Europe
 Challenging market environment limits value generation
 Pleasing IFRS result from healthy portfolio overall
 In-force management action from previous years bears fruit
Total
 Strong VNB in a challenging economic environment
 IFRS result – apart from Australian and US back-book business –
well on track
Pleasing
Satisfactory
Top priority on rehabilitation of in-force portfolio
Introduction of new valuation basis has negatively affected results …
… but has improved the basis for analysing and evaluating the business
Overall prudent approach to new business
Below expectations
73
Reinsurance Life – Portfolio and strategic focus
Well-diversified global portfolio
United Kingdom
ILLUSTRATIVE
40%
40%
5%
50%
Canada
Continental Europe
45%
60%
10%
Asia
50%
40%
15%
60%
USA
85%
South Africa
Australia
10%
Latin America
Mortality
Morbidity
10%
90%
20%
90%
80%
Longevity
Geographical weight on North America – High concentration on mortality risk
Size of bubbles indicative of present value of future claims.
74
Reinsurance Life – Portfolio and strategic focus
Risk-return profile of selected sub-portfolios
relative to core business
Initiatives
portfolio
Higher
Strategic focus and areas of attention
1 FinMoRe
2 Asia
Business performing well Pleasing contribution to VNB
– strong demand prevails underpins business potential
ILLUSTRATIVE
FinMoRe
Canada
mortality
GROW
Asset
protection
Return
Asia
Traditional
morbidity
US new
business
Overweight
 Traditional mortality risk will remain our core business –
both in terms of new business value and bottom line
 FinMoRe and Asia: high strategic relevance and strong
contributions to bottom line …
 … complemented by asset protection and a prudent
expansion into longevity risk
Lower  Underperforming business approached with rigorous
portfolio management
Underweight
Neutral
Unique
Longevity
REPAIR
Lower
Traditional
mortality
Australian
disability
US
LTC
Higher
Compared to competitors
3 Longevity
4 Asset protection
Book developed carefully Opportunities
in line with risk appetite
US
back-book
Risk
High weight on core mortality business, complemented by initiatives portfolio
75
Reinsurance Life – Strategic pillars
1
Financially Motivated Reinsurance remains a key
strategic pillar
€m
Financially Motivated Reinsurance
% of total
Technical result and fee income
Fee income
Technical result
% of total
4,536
4,109
3,638
92
3,356
75
1,998
25
38
41
25
38
35
33
7
50
38
127
% of total
185
49
62
129
49
70
82
65
45
43
37
28
19
20
2010 2011 2012 2013 2014
28
2010 2011 2012 2013 2014
119
VNB
73
29
22
16
14
9
2010 2011 2012 2013 2014
Portfolio development
Expectations going forward
 Development of result contribution is a clear indicator
of the overall success
 Premium development and VNB display that number
and size of transactions vary
 Geographically well-diversified portfolio
 Largest contribution to 2014 VNB from North America
 Demand for solutions will remain high
 Solvency II will impact the product design
 Number, size and type of transactions are difficult to
predict and will vary on an annual basis
76
2
Asia – Sustained growth across all major markets
€m
Reinsurance Life Asia
Technical result and fee income
Fee income
Technical result
% of total
% of total
1,178
957
959
872
871
55
1
12
29
10
VNB
11
8
9
2010 2011 2012 2013 2014
% of total
97
93
81
62
4
59
5
59
56
35
32
19
15
9
12
2010 2011 2012 2013 2014
17
21
14
9
2010 2011 2012 2013 2014
13
Portfolio development
 Sustained growth path
 Premium reduction from planned termination of
solvency relief deals
 Customised market and client strategies
 Growth supported by our state-of-the-art automated
underwriting solution (MRAS1)
 Traditional reinsurance mainly driven by CI2 products
 Demand for solvency relief and financing solutions
remains high
 Increase in competition and pressure on prices
 Overall growth path is expected to flatten
 Underwriting discipline remains high
1
Munich Re Automation Solutions Ltd. 2 Critical illness.
77
3
Longevity – Prudent development of portfolio
€m
Longevity
% of total
Liabilities by deals
2,788
312
1,040
120
53
0
Portfolio composition
21
1
887
982
 Portfolio comprises longevity swaps
in the UK market
 1–2 transactions concluded per
annum
 No significant VNB expectation
 Steep increase in 2014 reflects
participation in the large AVIVA
scheme
3
2010 2011 2012 2013 2014
0
2010 2011 2012 2013 2014
Strategic proposition
 Uncertainty around future mortality trend requires
prudent approach in pricing and valuation
 Evolutionary development of portfolio within clearly
defined risk tolerance
 Longevity considered to be primarily a risk
management tool to balance mortality portfolio and
to stabilise earnings
 Carefully investigate expansion into other markets
 High market potential but also significant pressure
on prices
78
4
Financial Solutions / asset protection –
Efficient solutions in changing market environments
Financial Solutions / asset protection
€m
IFRS contribution margin1
37
30
30
2012
2013
Strategic proposition
 Legal, regulatory and structuring expertise
combined with fully functional hedging platform
 Increasing contribution to Reinsurance Life value
creation
7
–3
2010
2011
2014
Product portfolio
Regional focus





 In-force: So far dominated by Asia/Japan
 Current opportunities: mainly in Europe
 Exploration of opportunities in North America
1
Solutions to Basel III needs
Solutions to Solvency II needs
Resolve accounting asymmetry
ALM solutions for smaller players
Develop modern savings products
Part of non-technical-result, before platform investment expenses of ~€50m.
79
Reinsurance Life
Status update on Australian disability and US mortality
Australian disability
US mortality
Recap
 2011: €150m pre-tax loss in individual disability
 2013: €130m pre-tax losses, split almost equally
between group and individual disability
 2013: Elevated mortality in older issue-age
segment, business written pre-2009
 MCEV assumption change of –€300m
Status
 Comprehensive and systematic review of overall
 Aggregate mortality experience in 2014 very
portfolio conducted (not limited to disability), including
close to expectation set at year-end 2013
detailed review of valuation models and assumptions  Mortality issues continue to persist, but did
 Implementation of a new valuation system
not worsen further in 2014
 Financial impact of above measures
 No need to strengthen IFRS reserves due
to sufficient buffers
 IFRS: Roughly –€100m (Q4 2014)
 MCEV: Main driver of negative assumption
changes and other operating variance
Outlook  Increased confidence in reserving quality
 Improved basis to analyse the business
 Well-positioned to work with clients on rehabilitation
of portfolio and profitable new business
 Group disability: continuing our prudent approach
 Individual disability: Careful re-pricing with a critical
view to selective lapsation
 Continue to expect somewhat depressed
IFRS results
 Limited duration of the risks in question
 New older issue-age business only around
1% of total new business
 Different underwriting and pricing
requirements applied
80
Reinsurance Life
Financial outlook 2015
€m
IFRS technical result
Actual
Adjusted
Adjustments
354
420
 2010: US long-term care
370
280
 2011/13/14: Australian disability
 2014: US recapture settlement
79
Run-rate of ~€400m confirmed
2010
2011
2012
2013
2014
€m
MCEV VNB
Actual
Adjusted
643
573
Adjustments
577
475
453
 Peaks in value generation from FinMoRe
Expectation of ~€450m confirmed
2010
2011
2012
2013
2014
81
Reinsurance Life
Key takeaways
Financial
results
VNB withstands market challenges – Selected Australian and US business segments lead to
deteriorated IFRS result while majority of business performing as expected or better
Very well positioned, both in large established markets and in dynamic growth segments –
Strategic
positioning asset protection capabilities a key differentiator
Portfolio
Clear overweight in overall stable mortality business – reliable contributions from FinMoRe,
further careful development of living benefits and longevity and active portfolio management
to address underperforming business
Outlook
Development in established markets flat at best, while some growth expected from emerging
markets – pressure on volumes and margins requires rigorous underwriting discipline,
FinMoRe with ongoing good business potential
82
Agenda
Munich Re (Group)
Jörg Schneider
Risk management
Bernhard Kaufmann
ERGO
Torsten Oletzky
Torsten Jeworrek
Reinsurance Life
Joachim Wenning
Backup
83
Backup: Munich Re (Group)
Premium development
€m
Q1–4 2013
51,060
Foreign-exchange effects
–745
Divestment/Investment
–702
Organic change
–765
Q1–4 2014
48,848
€m
Segmental breakdown
16,730 (34%) (▲ –1.7%)
ERGO Life/Health Germany
9,812 (20%) (▲ –1.8%)
ERGO Property-casualty Germany
3,115 (6%) (▲ –1.8%)
ERGO International
3,809 (8%) (▲ 8.6%)
Reinsurance Life
10,040 (21%) (▲ –7.3%)
Munich Health
5,342 (11%) (▲ –18.5%)
84
Backup: Munich Re (Group) – Financial highlights 2014
Net result
€m
Net result
Q1–4
2014
Q1–4
2013
3,171
3,333
2,893
2,775
ERGO
169
408
Munich Health
109
150
1,194
974
942
535
630
762
738
729
Total1
Reinsurance
Q1
Q2
Q3
Q4
Q1
2013
Q2
€m
€m
Investment result
7,245
3,243
Q4
2014
Technical result
3,645
Q3
8,002
77
958
1,670
610
1,972
–172
–1,065
FY 2013 FY 2014
1
2
Q3 2014 Q4 2014
€m
Other2
FY 2013 FY 2014
Q3 2014 Q4 2014
Segments do not add up to total amount; difference relates to the segment "asset management".
Other non-operating result, goodwill impairments, net finance costs, taxes.
–857
FY 2013 FY 2014
Q3 2014 Q4 2014
85
Backup: Munich Re (Group)
Reconciliation of operating to net result
Reconciliation of operating to net result
€m
Q1–4
Q4
4,028
652
Other non-operating result
–496
–30
Goodwill impairments1
–445
–445
Net finance costs
–228
–58
312
610
3,171
729
Operating result
Taxes
Net result
€m
Other non-operating result
Foreign exchange
Restructuring charges
Other
1
Incl. €5m for the Baltic.
Q1–4
Q4
–135
157
–72
–53
–289
–134
Tax rates
Group
Reinsurance
ERGO
Munich Health
%
Q1–4
Q4
–10.9
–512.6
2.1
–8.8
180.9
68.0
4.4
–75.0
86
Backup: Munich Re (Group) – Capitalisation
Strong IFRS capital position
€m
Equity
Equity 31.12.2013
Consolidated result
Changes
Dividend
Unrealised gains/losses
Exchange rates
Share buy-backs
Other
Equity 31.12.2014
26,188
3,171
Change Q4
–1,254
2,661
1,428
–1,392
–498
30,304
0
683
317
–270
–414
1,045
729
UNREALISED GAINS/LOSSES
Fixed-interest securities
Q1–4: +€2,511m
Q4: +€628m
Non-fixed-interest securities
Q1–4: +€150m
Q4: +€62m
EXCHANGE RATES
Positive FX contribution
mainly driven by US$
€bn
Capitalisation
0.6
4.8
1
2
0.5
4.7
0.3
5.5
0.3
4.4
0.3
4.4
13.6%
19.0%
18.3%
17.5%
15.3%
23.0
23.3
27.4
26.2
30.3
2010
2011
2012
2013
2014
Senior and other debt1
Subordinated debt
Equity
Debt leverage2 (%)
Other debt includes bank borrowings of Munich Re and other strategic debt.
Strategic debt (senior, subordinated and other debt) divided by total capital (strategic debt + equity).
87
Backup: ERGO – Premium development
ERGO – Premium development
€m
Q1–4 2013
–50
Divestments/Investments
15
Organic change
Q1–4 2014
104
€m
Life/Health Germany
16,667
Regional breakdown
Rest of world
25
%
Germany
75
–175
Property-casualty
Germany
–57
International
301
Q1–4 2014
Property-casualty
Germany
3,115 (18%)
(▲ –1.8%)
International
3,809 (23%)
(▲ 8.6%)
16,736
Q1–4 2013
Life/Health
Germany
9,812 (59%)
(▲ –1.8%)
16,667
€m
Segmental breakdown
16,736
88
Backup: ERGO Life/Health Germany– Key figures
ERGO Life/Health Germany – Key figures
€m
Net result
269
130
68
46
13
Q1
Q2
Q3
31
27
39
Q4
Q1
Q2
2013
73
Q3
Q4
2014
€m
Technical result
€m
Investment result
383
158
Q1–4
Q1–4
2013
2014
€m
Other1
225
4,453
3,785
144
Q1–4 2013
1
Q1–4 2014
Q1–4 2013
Q1–4 2014
–30
Q1–4 2013
Q1–4 2014
89
Backup: ERGO Life Germany – New business
Germany: Total premiums and new business
incl. direct business (statutory premiums)
Total premiums
€m
Q1–4
2014
Q1–4
2013
Δ
abs.
Δ
%
4,005
4,178
–173
–4.1
918
994
–76
–7.7
Total premiums
4,923
5,172
–249
–4.8
New business
€m
Q1–4
2014
Q1–4
2013
Δ
abs.
Δ
%
New business
1,215
1,281
–66
–5.2
Regular premiums
236
269
–33
–12.3
Single premiums
979
1,012
–33
–3.3
Annual premium equivalent (APE)1
334
370
–36
–9.7
Statutory premiums
1
2
Annual premium equivalent (APE = regular premiums +10% single premiums).
APE, only third-layer private provision and tied-agent organisations.
90
Backup: ERGO Property-casualty Germany – Key figures
ERGO Property-casualty Germany – Key figures
€m
Net result
156
82
68
45
Q1
Q2
18
11
Q3
Q4
58
Q1
Q2
2013
€m
214
Q3
Q4
Q1–4 2014
€m
Investment result
Q1–4
Q1–4
2013
2014
€m
Other1
238
204
177
1
19
2014
Technical result
Q1–4 2013
31
176
Q1–4 2013
Q1–4 2014
–135
–128
Q1–4 2013
Q1–4 2014
91
Backup: ERGO Property-casualty Germany
%
Combined ratio
Other
311
105.2
101.3
100.9
95.3
91.3
94.3
94.0
€m
95.7
97.1
95.4 95.4
93.5
Personal accident
672
Legal
protection
400
TOTAL
Motor
666
€3,115m
Liability
534
Fire/Property
532
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Combined ratio
Expense ratio
Loss ratio
98.0
33.1
64.9
96.7
32.7
Cost ratio
Loss ratio
95.3
32.2
110.1
75.3
25.3
101.0
35.6
89.0
97.3
31.4
35.8
57.6
61.5
106.6
30.8
95.3
32.2
35.8
64.0
84.8
63.1
75.8
63.1
Personal Motor Fire/ Liability Legal Other
accident
Property
protection
Total
39.5
2012
%
2013
2014
65.4
92
Backup: ERGO Property-casualty Germany
Personal accident
€m
GWP
738
Motor
687
672
Combined ratio
79.6
%
€m
GWP
Combined ratio
%
81.2
641
649
666
110.1
101.2
75.3
106.3
2012
2013
2014
2012
2013
2014
Fire/Property
602
Combined ratio
105.7
571
2013
2014
2012
2013
2014
Liability
€m
GWP
2012
%
€m
GWP
108.6
%
100.4
101.0
532
Combined ratio
509
523
534
89.0
85.6
2012
2013
2014
2012
2013
2014
2012
2013
2014
2012
2013
2014
93
Backup: ERGO International – Key figures
ERGO International – Key figures
€m
Net result
56
18
12
8
58
94
48
14
–276
–396
Q1
Q2
Q3
Q4
Q1
Q2
2013
Q3
Q4
2014
€m
Technical result
€m
Investment result
Q1–4
Q1–4
2013
2014
€m
Other1
662
551
123
–116
136
–554
Q1–4 2013
1
Q1–4 2014
Q1–4 2013
Q1–4 2014
Q1–4 2013
Q1–4 2014
94
Backup: ERGO International property-casualty
ERGO International property-casualty
%
Combined ratio
€m
Other
347
102.0
101.3
100.4
100.0
98.0
99.3
96.5
99.2
97.2
97.5
94.9
96.8
Poland
816
Legal
protection
652
TOTAL
€2,184m
Greece
137
Turkey
232
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Expense ratio
Loss ratio
99.8
35.5
Combined ratio
98.7
37.9
Cost ratio
Loss ratio
97.3
38.8
97.7
34.5
64.3
60.8
%
58.5
63.2
108.4
30.5
77.9
94.0
68.7
2013
2014
Poland
Turkey
43.1
44.5
97.3
38.8
34.4
34.3
2012
108.0
Greece
64.9
58.5
Legal
Other
protection
Total
49.5
95
Backup: ERGO International property-casualty
ERGO International property-casualty
Poland
Turkey
€m
GWP1
Combined ratio
Non-motor %
Motor %
820
873
816
42
47
43
58
53
57
2012
2013
2014
95.2
96.0
%
97.7
2013
2014
Legal protection
%
122.3
293
225
232
43
42
58
57
58
2012
2013
2014
2012
108.5
108.4
2013
2014
Greece
€m
GWP
Combined ratio
Non-motor %
Motor %
42
2012
€m
GWP1
Combined ratio
%
€m
GWP1
Combined ratio
%
Non-motor %
Motor %
626
649
652
94.6
2012
1
2013
Excl. legal protection.
2014
2012
97.7
2013
94.0
2014
136
133
137
40
43
48
60
57
52
2012
2013
2014
83.5
81.3
68.7
2012
2013
2014
96
Backup: ERGO International life – New business
International life: Total premiums and new business
(statutory premiums)
Total premiums
€m
Q1–4
2014
Q1–4
2013
Δ
abs.
Δ
%
1,625
1,310
315
24.0
404
368
36
9.8
Total premiums
2,029
1,678
351
20.9
New business
€m
Q1–4
2014
Q1–4
2013
Δ
abs.
Δ
%
New business
1,051
655
396
+60.5
Regular premiums
194
173
21
+12.1
Single premiums
857
482
375
+77.8
Annual premium equivalent (APE)1
280
221
59
+26.7
Statutory premiums
1
2
Annual premium equivalent (APE = regular premiums +10% single premiums).
APE, only third-layer private provision and tied-agent organisations.
97
Backup: Munich Health – Premium development
Munich Health – Premium development
€m
Q1–4 2013
6,551
–195
–717
Organic change
–297
Q1–4 2014
5,342
Q1–4 2013
6,551
Reinsurance
–559
Primary insurance
–650
Q1–4 2014
Reinsurance
4,059 (76%)
(▲ –12.1%)
€m
5,342
€m
Segmental breakdown
Primary insurance
1,283 (24%)
(▲ –33.6%)
Regional breakdown
%
Asia and
Australasia
2
North
America
55
Africa,
Near and
Middle East
7
Europe
36
98
Backup: Munich Health – Key figures
Munich Health – Key figures
€m
Net result
150
109
56
38
Q1
30
26
Q2
Q3
Q4
53
20
22
Q1
Q2
2013
14
Q3
Q4
2014
€m
Technical result
€m
Investment result
135
77
Q1–4 2013
1
Q1–4 2014
95
87
Q1–4 2013
Q1–4 2014
Q1–4
Q1–4
2013
2014
€m
Other1
–18
–9
Q1–4 2013
Q1–4 2014
99
Backup: Reinsurance – Premium development
Reinsurance – Premium development
€m
Q1–4 2013
–500
0
Organic change
Q1–4 2014
26,770
€m
27,842
Life
–789
Property-casualty
–283
Q1–4 2014
Property-casualty
16,730 (62%)
(▲ –1.7%)
–572
Q1–4 2013
Life
10,040 (38%)
(▲ –7.3%)
27,842
€m
Segmental breakdown
26,770
%
Regional breakdown
Africa,
Middle East
3
North
America
45
Latin America
5
Asia and
Australasia
17
Europe
30
100
Backup: Reinsurance Property-casualty – Key figures
Reinsurance Property-casualty – Key figures
€m
Net result
895
648
524
305
Q1
Q2
Q3
Q4
646
505
497
Q1
Q2
Q3
2013
€m
2,468
Q1–4 2013
1
2,483
Q1–4
Q1–4
2013
2014
835
Q4
2014
Technical result
2,372
€m
Investment result
2,392
Q1–4 2014
1,766
1,785
–627
Q1–4 2013
Q1–4 2014
Q1–4 2013
€m
Other1
–341
Q1–4 2014
101
Backup: Reinsurance Property-casualty – Combined ratio
Reinsurance Property-casualty – Combined ratio
Combined ratio
%
Basic losses
Nat cat losses
Man-made losses
Expense ratio
2012
91.0
50.2
7.7 3.1
2013
92.1
51.3
4.7 5.7
30.4
2014
92.7
3.33.9
32.5
Q4 2014
91.2
53.0
46.4
2.7 3.4
%
Combined ratio
94.3
91.2
89.3
85.7
Q1
1
86.9
Q2
Q3
2013
Q4
Q1
%
Total
Nat cat
Man-made
2014
7.2
3.3
3.9
Q4 2014
6.1
2.7
3.4
~12.0
~8.5
~3.5
Avg. annual
expectation
91.3
38.7
Major losses 2014
101.4
99.3
30.0
Reserve releases basic losses1
Q2
Q3
2014
Q4
€bn %-points
2014
~1.1
6.9
Q4 2014
~0.6
15.4
Balance of releases (mainly fire, motor, liability and marine) and increases (agriculture and personal accident)
Adjusted for commission effects: Q1–4 2014 ~€0.9bn/5.3%-pts; Q4 2014: ~€0.4bn/9.1%-pts.
102
Backup: Reinsurance Property-casualty – Combined ratio
Development of combined ratio
%
Combined ratio vs. basic losses
Combined ratio
Basic loss ratio
94.6
96.9
89.4
57.4
57.1
53.6
Q1
Q2
Q3
83.2
32.5
Q4
99.3
94.3
89.3
86.9
54.1
53.9
49.3
47.8
55.9
Q1
Q2
Q3
Q4
Q1
85.7
2012
101.4
91.3
91.2
54.6
55.3
46.4
Q2
Q3
Q4
2013
2014
%
Nat cat vs. man-made
Nat cat ratio
Man-made ratio
17.1
5.3
7.2
7.9
5.6
2.0
1.0
Q1
4.0
Q2
2012
2.2
0.9
0.6
Q3
Q4
Q1
7.6
7.3
0.9
7.2
2.9
Q2
Q3
2013
8.1
6.3
Q4
3.4
2.5
2.7
Q3
Q4
7.3
0.1
Q1
3.9
Q2
2014
103
Backup: Reinsurance Property-casualty – January renewals 2015
January renewals – Regional focus on Europe
Total property-casualty book1
Remaining
business
26
%
Business up for
January renewals2
57
Regional allocation of renewable portfolio
January renewals
Rest-of-the-year renewals
94
Europe
6
78
Worldwide
North America
Asia/Pacific/
Africa
22
67
33
70
30
43
Latin America
TOTAL
%
57
€17bn
Nat cat shares of renewable portfolio
Nat cat
January
11
April
Business
up for July renewals
12
1
2
Business
up for April renewals
5
Gross premiums written. Economic view – not fully comparable with IFRS figures.
Including Risk Solutions business (11% of January renewal).
July
Total
Other perils
89
41
21
14
%
59
79
86
104
Consistent cycle management leads to top-line
reduction – Portfolio profitability remains sound
January renewals 2015
%
100
–13.2
86.8
–5.8
9.5
90.5
€m
9,445
–1,246
8,199
–546
899
8,552
Change in premium
 Thereof price movement1
 Thereof change in exposure for our share
Total renewable
from 1 January
Cancelled
Renewed
Decrease in
renewable
–9.5%
~ –1.3%
–8.2%
New business
Estimated
outcome
Ongoing strict bottom-line orientation to maintain portfolio quality
in a competitive market environment
1
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).
105
Renewal results
Year-to-date price change 2010–2015
Nominal
%
Adjusted for interest-rate changes
2.4
1.4
1.0
0.3
0.5
0.2
0.0
–0.1
–1.3
–1.7
–1.6
–2.4
2010
1
January renewals.
2011
2012
2013
2014
20151
106
January renewals 2015 –
Split by line of business and region
Split by line of business
%
62
11
3
5
9
38
37
43
2014
46
2015
Aviation
Credit
Marine
Split by region
%
2
3
Latin America
19
20
North America
18
17
Asia/Pacific/Africa
29
28
32
32
2014
2015
Property
Casualty
Worldwide
Europe
Share of casualty business increases, while regional allocation is
relatively stable overall
107
Backup: Reserves – Property-casualty – Reinsurance
Response to benign emergence of basic losses in line
with considered judgement
Actual vs. expected
Changes in projection
Property
Favourable actual vs. expected judged as credible
Reserve release
Specialty1
Casualty
 Favourable indications across all lines
 Reserve releases primarily in marine and credit,
following benign loss emergence
Relatively small reserve release
Reserve release
2
 Positive actual vs. expected indications
 Short-tail lines develop relatively quickly
 Releases driven by fire with some caution exercised on
contract year 2013 (mainly agricultural business)
Favourable actual vs. expected led to reserve
releases
Reserve release
1
Business rationale
 Favourable indications across all lines
 Releases2 mainly in third-party liability and a cautious
stance in contract year 2013 regarding some motor
segments
Aviation, credit and marine.
Reserve releases shown are adjusted for commission effects (mainly sliding scales in motor).
108
Backup: Reserves
Asbestos and environmental
survival ratio 31 December 2014
Munich Re (Group) – Net definitive as at 31 December 2014
€m
Asbestos
Environmental
Total
2,463
841
3,304
Case reserves
624
113
737
IBNR
973
213
1,186
1,597
326
1,923
3-year average annual paid losses
136
17
153
Survival ratio 3-year average
11.7
19.3
12.6
Paid
Total reserves
Non-€ currencies converted at rate of exchange year-end 2014.
109
Backup: Reinsurance Life – Key figures
Reinsurance Life – Key figures
€m
Net result
189
175
53
Q1
123
403
410
Q1–4
Q1–4
2013
2014
127
124
36
–14
Q3
Q2
Q4
Q1
Q2
2013
Q3
Q4
2014
€m
Technical result
€m
Investment result
810
€m
Other1
811
–50
–139
359
280
Q1–4 2013
1
Q1–4 2014
Q1–4 2013
Q1–4 2014
Q1–4 2013
Q1–4 2014
110
Backup: Reinsurance Life
New business profitability
on a pure economic and regulatory basis
RoRaC spread1
%
IRR spread1
%
Payback period2
20%
20%
20
15%
15%
15
10%
10%
10
5%
5%
5
0%
0%
2010 2011 2012 2013 2014
 Satisfactory new business
profitability relative to economic
risk capital (RoRaC spread)
 Low interest rates cause
disproportionate increase in
economic risk capital
1
years
0
2010 2011 2012 2013 2014
 Equally good new business
profitability relative to total
investment in new business
(IRR spread)
Spread in addition to reference rate (weighted-average swap yield curves), after tax. 2 Number of years it takes to
amortise the total investment in new business through future (undiscounted) shareholder cash flows.
2010 2011 2012 2013 2014
 Reduced share of FinMoRe
business (usually of shorter
duration) increases payback
period of 2014 new business
111
Free capital generation
€m
Cash generation
(Change in ANW)1
Change in required capital
Free capital generation
(Change in free surplus)
687
In-force
323
273
219
–54
–364
New
business
515
–47
273
–114
–562
–387
Total
276
2013
1
Adjusted net worth.
105
2014
151
2013
219
2014
125
2013
–114
2014
112
Free capital generation going forward
€m
Free capital generation from in-force portfolio as at 31 December 2014
2,500
 In 5 years:
17%
2,000
 In 10 years:
28%
1,500
 In 15 years:
40%
1,000
 In 20 years:
51%
… of total
500
0
2015 - 2020 - 2025 - 2030 - 2035 - 2040 - 2045 - 2050 - 2055 - 2060 - 2065 - 2070 - 2075 - 2080 2019 2024 2029 2034 2039 2044 2049 2054 2059 2064 2069 2074 2079 2084
€m
Free capital generation from new business written in 2014
300
 In 5 years:
24%
250
 In 10 years:
38%
 In 15 years:
49%
 In 20 years:
61%
200
150
100
… of total
50
0
2015 - 2020 - 2025 - 2030 - 2035 - 2040 - 2045 - 2050 - 2055 - 2060 - 2065 - 2070 - 2075 - 2080 2019 2024 2029 2034 2039 2044 2049 2054 2059 2064 2069 2074 2079 2084
113
Backup: Investments – Investment portfolio
Investment portfolio
Investment portfolio1
Land and buildings
2.4 (2.6)
Fixed-interest
securities
55.5 (54.8)
Shares, equity funds and
participating interests2
5.2 (4.8)
Miscellaneous3
7.7 (8.7)
Portfolio management
%
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,
Italy, Spain, Australia and emerging markets
TOTAL
€236bn
Reduction in ABS/MBS and covered bonds
Loans
29.2 (29.1)
Increase in equity quota to 5.2%
Portfolio duration4
Assets Liabilities
Reinsurance
ERGO
Munich Re (Group)
1
5.6 (4.4)
8.3 (7.4)
7.4 (6.4)
Net DV01 (€m)
4.6 (3.1)
–0.4 (–7.7)
9.2 (8.1)
7.4 (6.2)
Fair values as at 31.12.2014 (31.12.2013). 2 Net of hedges: 4.3% (4.6%). 3 Deposits retained on assumed
reinsurance, deposits with banks, investment funds (excl. equities), derivatives and investments in renewable
energies and gold. 4 As at 31.12.2014 (31.12.2013). Net DV01: Sensitivity to parallel upward shift of yield curve by
one basis point reflecting portfolio size.
16.8 (10.3)
16.4 (2.6)
114
Backup: Investments
Breakdown of regular income
Investment result –
Regular income (€m)
Q3
2014
Q4
2014
Q1–4
2014
Q1–4
2013 Change
915
909
3,596
3,699
–103
Afs non-fixed-interest
77
105
471
461
10
Derivatives
14
21
68
117
–49
549
546
2,190
2,249
–59
90
88
349
340
9
128
157
529
555
–26
1,773
1,826
7,203
7,421
–218
Afs fixed-interest
Loans
Real estate
Deposits retained on assumed reinsurance and other investments
Total regular income
€m
Average €1,876m
Regular income
1,985
1,889
1,934
1,999
1,953
1,907
1,843
1,783
Q1
Q2
Q3
2012
Q4
Q1
1,796
1,773
1,697
Q2
Q3
2013
Q4
Q1
1,826
Q2
Q3
Q4
2014
115
Backup: Investments
Breakdown of write-ups/write-downs
Write-ups/write-downs (€m)
Q3
2014
Q4
2014
Q1–4
2014
–4
–8
–12
3
–15
–35
–72
–145
–106
–39
–2
–3
2
–4
6
Real estate
–11
–13
–54
–73
19
–36
–35
–25
–256
231
Total net write-ups/write-downs
–88
–131
–234
–436
202
Afs fixed-interest
Afs non-fixed-interest
Loans
€m
58
105
–8
–88
–179
Q1
Average –€55m
Write-ups/write-downs
24
Q2
Q3
2012
Q1–4
2013 Change
Q4
Q1
0
–165
–175
Q2
–15
Q3
2013
Restated figures for 2013 and 2014 due to separate disclosure of investment result of derivatives.
For 2012, no restated figures are available.
Q4
Q1
Q2
–88
–131
Q3
Q4
2014
116
Backup: Investments
Breakdown of net result from disposals
Net result from disposal of investments (€m)
Q3
2014
Q4
2014
Q1–4
2014
Afs fixed-Income
148
563
1,186
793
393
Afs non-fixed-income
253
343
1,178
847
331
Loans
47
28
213
128
85
Real estate
15
0
20
18
2
16
12
32
–27
59
479
946
2,629
1,759
870
Total net result from disposals
€m
Q1–4
2013 Change
Average €420m
Net result from disposals
946
687
446
372
145
Q1
536
385
392
Q2
Q3
517
479
127
8
Q2
Q3
2012
Q4
Q1
2013
Restated figures for 2013 and 2014 due to separate disclosure of investment result of derivatives.
For 2012, no restated figures are available.
Q4
Q1
Q2
Q3
Q4
2014
117
Backup: Investments
Return on investment by asset class and segment
%1
Regular
income
2.9
Writeups/downs
–
Disposal
result
1.0
Extraord.
derivative result
–
Other inc./
exp.
–
RoI
3.9
ᴓ Market value
(€m)
122,211
Afs non-fixed-income
3.8
–1.2
9.5
–
–
12.1
12,425
Derivatives
4.4
–
–
–69.4
–0.2
–65.2
1,540
Loans
3.4
–
0.3
–
–
3.7
64,959
Real estate
6.3
–1.0
0.4
–
–
5.7
5,560
Other2
3.3
–0.2
0.3
–
–3.5
0.1
15,831
Total
3.2
–0.1
1.2
–0.5
–0.2
3.6
222,526
Reinsurance
3.0
–0.2
2.2
–1.6
–0.3
3.1
83,527
ERGO
3.4
–0.1
0.6
0.2
–0.2
3.9
135,240
Munich Health
2.2
–0.4
0.7
–
–0.2
2.3
3,759
Afs fixed-income
%
4.3%
4.0%
Average 3.7%
4.3%
3.9%
3.7%
3.5%
3.4%
Q1
Q2
3.4%
Q3
Q4
2012
1
Annualised. 2 Including management expenses.
Q1
3.4%
3.1%
Q2
3.0%
Q3
2013
3.4%
Q4
Q1
Q2
Q3
Q4
2014
118
Backup: Investments – Investment result
Investment result
€m
Investment result
Q1–4
2014
Return1
%
Q1–4
2013
Return1
%
Q4
2014
Return1
%
Q3
2014
Return1
%
Regular income
7,203
3.2%
7,421
3.5%
1,826
3.2%
1,773
3.1%
Write-ups/Write-downs
–234
–0.1%
–436
–0.2%
–131
–0.2%
–88
–0.2%
Disposal gains/losses
2,629
1.2%
1,759
0.8%
946
1.6%
479
0.9%
–1,068
–0.5%
–985
–0.5%
–505
–0.9%
–364
–0.6%
Other income/expenses
–528
–0.2%
–514
–0.2%
–164
–0.3%
–130
–0.2%
Investment result
8,002
3.6%
7,245
3.4%
1,972
3.4%
1,670
3.0%
Derivatives2
Total return %
10.9%
3-month
reinvestment yield
Q4
Write-ups/
Q1–4
write-downs 2014 2014
Q4 2014
2.1%
Real estate
Q3 2014
2.2%
Equities
Q4 2013
2.4%
Other
0.0%
Disposal
gains/losses
12.0%
Q4
Q1–4
2014 2014
8.8%
Derivatives
Q4
Q1–4
2014 2014
–54
–13
Fixed income 1,399
591
Fixed income3
–145
–72
Equities
1,178
343
Equities
–627 –135
–35
–46
Other
52
12
Other
–625 –474
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: €431m / €167m.
184
104
1
119
Backup: Investments
Investment result by segment
Investment result – Reinsurance – Life
Regular income
Derivatives
Investment result
Average market value
€m
Q1–4 2014
Return1
Q1–4 20132
Return1
Q4 2014
Return1
Q3 2014
Return1
805
–19
310
–237
–48
811
23,859
3.4%
–0.1%
1.3%
–1.0%
–0.2%
3.4%
823
–43
171
–96
–45
810
23,358
3.5%
–0.2%
0.8%
–0.4%
–0.2%
3.5%
206
–6
142
–103
–17
222
24,610
3.3%
–0.1%
2.3%
–1.7%
–0.2%
3.6%
199
–8
52
–85
–11
147
24,346
3.3%
–0.1%
0.8%
–1.4%
–0.2%
2.4%
Investment result – Reinsurance – Property-casualty
Regular income
Derivatives
Investment result
1
2
€m
Q1–4 2014
Return1
Q1–4 20132
Return1
Q4 2014
Return1
Q3 2014
Return1
1,710
–134
1,532
–1,140
–183
1,785
59,668
2.8%
–0.2%
2.6%
–1.9%
–0.3%
3.0%
1,783
–276
871
–432
–180
1,766
59,129
3.0%
–0.5%
1.5%
–0.7%
–0.3%
3.0%
448
–87
631
–487
–57
448
62,768
2.9%
–0.5%
4.0%
–3.1%
–0.4%
2.9%
426
–41
278
–404
–43
216
59,930
2.8%
–0.3%
1.9%
–2.7%
–0.3%
1.4%
Return on quarterly weighted investments (market values) in % p.a.
Result from derivatives without regular income and other income/expenses.
120
Backup: Investments
Investment result – ERGO Life/Health Germany
Regular income
Derivatives2
Investment result
€m
Q1–4 2014
Return1
Q1–4 2013
Return1
Q4 2014
Return1
Q3 2014
Return1
3,880
–56
555
318
–244
4,453
110,968
3.5%
–0.1%
0.5%
0.3%
–0.2%
4.0%
3,987
–72
461
–347
–244
3,785
105,147
3.8%
–0.1%
0.4%
–0.3%
–0.2%
3.6%
962
–24
125
98
–74
1,087
116,104
3.3%
–0.1%
0.4%
0.3%
–0.2%
3.7%
944
–17
101
120
–63
1,085
112,580
3.4%
–0.1%
0.4%
0.4%
–0.2%
3.9%
Investment result – ERGO Property-casualty Germany
Regular income
Derivatives2
Investment result
1
2
€m
Q1–4 2014
Return1
Q1–4 2013
Return1
Q4 2014
Return1
Q3 2014
Return1
198
–14
115
–76
–19
204
7,108
2.8%
–0.2%
1.6%
–1.1%
–0.2%
2.9%
202
–27
119
–43
–13
238
6,807
3.0%
–0.4%
1.7%
–0.6%
–0.2%
3.5%
49
0
17
–37
–7
22
7,215
2.7%
0.0%
0.9%
–2.0%
–0.4%
1.2%
48
–9
13
–17
–3
32
7,188
2.7%
–0.5%
0.7%
–0.9%
–0.2%
1.8%
121
Backup: Investments
Investment result – ERGO International
Regular income
Derivatives2
Investment result
€m
Q1–4 2014
Return1
Q1–4 2013
Return1
Q4 2014
Return1
Q3 2014
Return1
528
4
91
67
–28
662
17,164
3.1%
0.0%
0.5%
0.4%
–0.1%
3.9%
538
–17
132
–75
–27
551
16,220
3.3%
–0.1%
0.8%
–0.4%
–0.2%
3.4%
136
–6
19
23
–8
164
17,869
3.0%
–0.1%
0.5%
0.5%
–0.2%
3.7%
134
–6
32
22
–7
175
17,414
3.1%
–0.1%
0.7%
0.5%
–0.2%
4.0%
Investment result – Munich Health
Regular income
Derivatives2
Investment result
1
2
€m
Q1–4 2014
Return1
Q1–4 2013
Return1
Q4 2014
Return1
Q3 2014
Return1
82
–15
26
0
–6
87
3,759
2.2%
–0.4%
0.7%
0.0%
–0.2%
2.3%
88
–1
5
8
–5
95
3,778
2.3%
0.0%
0.1%
0.2%
–0.1%
2.5%
25
–8
12
1
–1
29
3,863
2.6%
–0.8%
1.2%
0.1%
–0.1%
3.0%
22
–7
3
0
–3
15
3,743
2.3%
–0.7%
0.3%
0.0%
–0.3%
1.6%
122
Backup: Investments
Fixed-interest securities and miscellaneous
Miscellaneous
7.7 (8.7)
%
55.5 (54.8)
Fixed-interest securities1
Structured products
5 (6)
Governments/
Semi-government
59 (53)
Corporates
15 (16)
TOTAL
Banks
3 (4)
€236bn
Miscellaneous
%
Deposits on
reinsurance
49 (53)
Other
14 (13)
Derivatives
6 (4)
Bank deposits
19 (16)
1
TOTAL
€131bn
Pfandbriefe/
Covered bonds
18 (21)
Loans
29.2 (29.1)
Investment
funds
12 (14)
%
TOTAL
€18bn
Loans1
%
Loans to policyholders/
Mortgage loans
9 (9)
Corporates
1 (1)
Banks
4 (6)
Approximation – not fully comparable with IFRS figures. Fair values as at 31.12.2014 (31.12.2013).
Governments/
Semi-government
39 (38)
TOTAL
€69bn
Pfandbriefe/
Covered bonds
47 (46)
123
Backup: Investments
Fixed-income portfolio
Total
%
Loans to policyholders/
Mortgage loans
3 (3)
Governments/
Semi-government
50 (46)
Structured products
3 (4)
Bank bonds
3 (3)
TOTAL
€207bn
Cash/Other
4 (5)
Corporate bonds
10 (10)
Pfandbriefe/
Covered bonds
27 (29)
124
Backup: Investments
Total
Rating structure
<BB and NR
6 (6)
BB
2 (2)
BBB
12 (12)
%
Regional breakdown
AAA
42 (42)
Without
TOTAL
€206.7bn
A
12 (12)
AA
26 (26)
Maturity structure
%
n.a.
2 (2)
0–1 years
8 (9)
1–3 years
14 (16)
>10 years
35 (31)
AVERAGE
MATURITY
9.0 years
7–10 years
15 (14)
3–5 years
14 (15)
5–7 years
12 (13)
%
With
policyholder
participation
Germany
US
France
UK
Netherlands
Supranationals
Canada
Total
31.12.
2014
31.12.
2013
4.2
12.9
1.9
3.2
1.5
26.1
1.1
5.7
2.9
2.9
30.3
14.0
7.6
6.1
4.4
32.2
13.7
7.9
6.4
4.8
0.8
2.9
3.7
3.3
3.5
0.1
3.6
3.5
Spain
1.5
2.0
3.5
2.8
Italy
Austria
Ireland
Australia
Sweden
Norway
Belgium
Other
1.1
0.5
0.6
1.8
0.3
0.4
0.5
7.1
2.2
2.0
1.8
0.4
1.5
1.3
1.1
4.2
3.3
2.5
2.4
2.2
1.8
1.7
1.6
11.3
2.7
2.7
2.7
1.9
2.0
1.9
1.5
10.0
41.8
58.2
100.0
100.0
Total
125
Backup: Investments
Governments/Semi-government
Rating structure
BB
1 (1)
BBB
11 (10)
A
7 (6)
%
Regional breakdown
AAA
46 (47)
Without
€103.6bn
AA
35 (36)
Maturity structure
%
0–1 years
7 (9)
>10 years
44 (39)
1–3 years
13 (17)
AVERAGE
MATURITY
10.7 years
7–10 years
13 (10)
3–5 years
13 (13)
5–7 years
10 (12)
With
policyholder
participation
Germany
US
Supranationals
Canada
TOTAL
%
Total
31.12.
2014
31.12.
2013
4.4
15.0
25.2
0.6
29.6
15.6
33.0
13.9
1.5
5.8
7.3
7.2
5.3
0.2
5.5
5.9
UK
4.5
0.2
4.7
4.5
Italy
Austria
France
Spain
Australia
Belgium
Netherlands
Finland
Ireland
Portugal
Other
1.2
0.7
1.1
1.5
3.0
0.8
1.3
0.3
0.2
0.1
9.1
3.1
2.6
2.1
1.7
0.0
2.1
0.7
1.6
1.5
0.0
2.6
4.3
3.3
3.2
3.2
3.0
2.9
2.0
1.9
1.7
0.1
11.7
3.7
3.9
3.6
1.9
2.4
3.0
2.3
2.1
1.7
0.0
10.9
50.0
50.0
100.0
100.0
Total
126
Backup: Investments
Pfandbriefe/Covered bonds
Rating structure
%
AAA
61 (61)
BBB
3 (4)
A
11 (9)
TOTAL
€55.4bn
AA
25 (26)
Maturity structure
%
0–1 years
5 (4)
>10 years
38 (38)
Regional breakdown
%
31.12.2014
34.7
18.6
8.4
6.8
6.2
5.9
5.5
3.1
1.3
9.4
Germany
France
UK
Netherlands
Spain
Sweden
Norway
Ireland
Italy
Other
31.12.2013
36.2
18.0
9.1
6.7
5.6
6.0
5.6
3.2
0.7
8.9
Cover pools
%
Mixed and other
11 (10)
Mortgage
57 (57)
1–3 years
13 (13)
AVERAGE
MATURITY
7.9 years
7–10 years
20 (19)
TOTAL
3–5 years
11 (13)
5–7 years
13 (13)
€55.4bn
Public
32 (33)
127
Backup: Investments
Corporate bonds (excluding bank bonds)
Rating structure
%
<BB and NR
2 (1)
BB
11 (9)
AAA
1 (1)
TOTAL
€20.5bn
AA
6 (7)
A
34 (34)
BBB
46 (48)
Maturity structure
%
>10 years
16 (13)
0–1 years
6 (7)
7–10 years
18 (18)
1–3 years
19 (19)
AVERAGE
MATURITY
7.4 years
5–7 years
19 (17)
Sector breakdown
3–5 years
22 (26)
%
31.12.
2014
31.12.
2013
Utilities
22.3
19.7
Oil and gas
12.2
12.2
Industrial goods and services
12.1
13.2
Telecommunications
9.5
10.0
Healthcare
5.9
6.2
Financial services
5.4
4.4
Food and beverages
4.7
5.3
Media
4.4
4.4
Retail
3.7
3.4
Basic resources
3.6
3.2
Technology
3.6
4.7
Automobiles
2.7
2.8
Personal and household goods
2.5
2.7
Other
7.4
7.8
128
Backup: Investments
Bank bonds
Rating structure
%
<BB and NR
5 (4)
BB
5 (3)
TOTAL
€7.1bn
AA
8 (8)
A
56 (50)
Maturity structure
%
>10 years
5 (4)
AVERAGE
MATURITY
Total
31.12.
31.12.
2014
2013
29.2
34.7
29.0
29.6
12.0
10.2
5.0
5.4
3.1
3.5
3.0
3.6
2.8
1.9
2.3
1.7
2.0
2.1
11.6
7.3
Investment category of bank bonds
%
Germany
US
UK
Ireland
Australia
Canada
France
Netherlands
Jersey
Other
0–1 years
8 (5)
Loss-bearing1
5 (5)
1–3 years
23 (16)
Subordinated2
14 (11)
4.5 years
5–7 years
14 (24)
%
Lossbearing
3.4
0.2
0.0
0.0
0.0
0.1
0.5
0.0
0.1
0.7
AAA
1 (1)
BBB
25 (34)
7–10 years
11 (16)
Regional breakdown
Senior
Subbonds ordinated
22.6
3.2
25.0
3.8
9.8
2.2
5.0
0.0
3.0
0.1
2.1
0.8
1.5
0.8
2.1
0.2
1.8
0.1
8.5
2.4
Senior
81 (84)
TOTAL
€7.1bn
3–5 years
39 (35)
1 Classified
as Tier 1 and upper Tier 2 capital for solvency purposes. 2 Classified as lower Tier 2 and
Tier 3 capital for solvency purposes.
129
Backup: Investments
Structured products
€m
Structured products portfolio (at market values): Split by rating and region
Rating
ABS
Total
Marketto-par
518
877
101%
–
322
322
100%
–
4
–
4
100%
–
–
–
–
–
0%
10
–
40
334
1,001
1,335
98%
–
–
–
–
1,415
–
1,415
105%
180
228
53
–
4
29
823
852
101%
118
75
18
26
1
–
18
220
238
100%
Commercial MBS
591
28
196
108
23
3
551
398
949
101%
Total 31.12.2014
3,374
1,313
974
255
29
47
2,710
3,282
5,992
101%
56%
22%
16%
4%
1%
1%
45%
55%
100%
3,875
1,353
1,293
382
159
63
3,145
3,980
7,125
AAA
AA
A
BBB
<BBB
NR
USA +
RoW
Consumer-related ABS1
390
320
163
4
–
–
359
Corporate-related ABS2
5
101
159
52
5
–
Subprime HEL
–
1
1
2
–
–
–
–
–
547
529
209
1,336
79
Non-agency prime
387
Non-agency other
(not subprime)
CDO/ Subprime-related
CLN
Non-subprime-related
MBS
Region
Agency
In %
Total 31.12.2013
Europe
99%
1
Consumer loans, auto, credit cards, student loans.
Asset-backed CPs, business and corporate loans, commercial equipment.
Approximation – not fully comparable with IFRS figures. Fair values as at 31.12.2014.
2
130
Backup: Investments
Sensitivities to interest rates, spreads and
equity markets
Sensitivity to risk-free interest rates – Basis points
–50
–25
+50
+100
Change in gross market value (€bn)
Change in on-balance-sheet reserves, net (€bn)1
Change in off-balance-sheet reserves, net (€bn)1
P&L impact (€bn)1
+8.4
+1.9
+0.5
+0.0
+4.1
+0.9
+0.2
+0.0
–7.6
–1.8
–0.4
–0.0
–14.5
–3.5
–0.8
–0.0
Sensitivity to spreads2 (change in basis points)
+50
+100
P&L impact (€bn)1
–5.4
–1.1
–0.3
–0.0
–10.3
–2.2
–0.6
–0.0
+10%
3,461
+1.3
+0.9
+0.2
–0.0
+30%
4,090
+4.0
+2.7
+0.6
+0.0
Sensitivity to equity and commodity markets3
EURO STOXX 50 (3,146 as at 31.12.2014)
P&L impact (€bn)1
1
2
3
–30%
2,202
–3.8
–1.1
–0.6
–1.6
Rough calculation with limited reliability assuming unchanged portfolio as at 31.12.2014. After rough
estimation of policyholder participation and deferred tax; linearity of relations cannot be assumed.
Approximation – not fully comparable with IFRS figures.
Sensitivities to changes of spreads are calculated for every category of fixed-interest securities,
except government securities with AAA ratings.
Worst-case scenario assumed including commodities: impairment as soon as market value is below
acquisition cost. Approximation – not fully comparable with IFRS figures.
–10%
2,831
–1.3
–0.5
–0.2
–0.4
131
Backup: Investments
On- and off-balance-sheet reserves (gross)
€m
Market value of investments
31.12.
2012
31.12.
2013
30.9.
2014
31.12.
2014
224,537 210,431 229,008 235,849
Total reserves
22,478
15,192
26,476
31.470
9,980
4,661
10,097
11.967
Non-fixed-interest securities
1,503
1,975
2,072
2.270
291
292
312
311
11,774
6,928
12,481
14.548
Real estate2
1,519
1,763
1,823
2.006
Loans and investments (held to maturity)
8,831
6,071
11,801
14.400
354
430
371
516
10,704
8,264
13,995
16.922
10.0%
7.2%
11.6%
13.3%
On-balance-sheet reserves
Other on-balance-sheet reserves1
Subtotal
Off-balance-sheet reserves
Associates
Subtotal
Reserve ratio (%)
1
2
Unrealised gains/losses from unconsolidated affiliated companies, valuation at equity and cash-flow hedging.
Excluding reserves from owner-occupied property.
132
Backup: Investments
€m
31.12.2014
Change Q4
14,237
2,068
Valuation at equity
113
–3
Unconsolidated affiliated enterprises
168
1
30
1
Total on-balance-sheet reserves (gross)
14,548
2,067
Provision for deferred premium refunds
–6,418
–1,010
Deferred tax
–1,988
–335
Minority interests
–24
–9
Consolidation and currency effects
–94
–42
6,024
671
Investments afs
Cash flow hedging
Shareholders' stake
133
Backup: Investments
€m
Real estate1
Loans and investments (held to maturity)
Associates
Total off-balance-sheet reserves (gross)
31.12.2014
Change Q4
2,006
183
14,400
2,599
516
145
16,922
2,927
–12,605
–2,240
–1,316
–203
–1
0
3,000
484
As if
Provision for deferred premium refunds
Deferred tax
Minority interests
Shareholders' stake
1
Excluding reserves for owner-occupied property.
134
Backup: Risk management – Overview on changes of risk profile
Increase in market risk driven by market conditions
Risk category
Year-end €bn
Group
RI ERGO
Div. Explanation
2013
2014
2014
2014
2014
Equity
6.5
5.8
4.6
1.3
–0.1 Risk reduction via hedging derivatives
General
interest rate
5.1
5.3
3.3
4.5
–2.5
Credit spread
4.6
5.2
3.0
3.3
Real estate
2.4
2.2
1.4
0.9
Currency
1.5
2.6
2.3
0.3
Simple sum
20.1
21.1
14.6
10.3
–3.8
Diversification
–8.5
–8.6
–7.1
–3.6
–
Total ERC
11.6
12.5
7.5
6.7
–1.7
Market conditions (decreased interest rates, increased
implied volatilities, appreciation of foreign currencies)
and moderate shift towards credit exposure
–1.1 accompanied by assumption changes
Assumption change in ERGO reduces real estate
–0.1
sensitivity
±0.0 Extension of overweight in USD
Improved diversification due to moderate ERC
increase
Increase in interest rate and currency risk partially offset by reduction in equity risk
135
Backup: Risk management – Capital position 31.12.2014
Summary of economic capital disclosure
€bn
Position as at 31 December 2014
Capital with Solvency II
calibration
Additional
75% buffer
Available financial
resources (AFR)
Economic risk capital1
15.4
11.5
Economic capital buffer
Capital buffer
under Solvency II calibration
Economic capital buffer
after share buy-back and dividends2
Capital buffer after share buy-back and
dividends2 under Solvency II calibration
1
Solvency II capital based on VaR 99.5%, Munich Re internal risk model based on 175% of Solvency II capital. 2 After announced
dividend payout of ~€1.3bn for 2014 to be paid in April 2015 and outstanding share buy-backs of ~€0.3bn.
31.12.
2014
31.12.
2013
38.8
38.2
26.9
23.7
11.9
14.5
23.4
24.7
10.3
12.5
21.8
22.7
136
Backup: Risk management – Capital position 31.12.2014
Reconciliation of AFR with IFRS equity
€bn
Reconciliation of AFR with IFRS equity
IFRS
equity
Off-balance-sheet
unrealised gains and losses
30.3
1.5
Valuation adjustments1
4.8
Goodwill and
other intangibles²
–3.6
Loss carry-forward component
of deferred tax assets³
–0.1
Economic
equity
32.9
Hybrid
capital4
5.9
Available financial
resources
1
Includes discount of reserves, embedded value not recognised in IFRS equity and change in p-c reserve basis: claims payments
projected using actuarial methods. ² Deduction net of tax effects. ³ Deduction only of the amount not covered by excess of deferred tax
liabilities on single-entity level and US tax group respectively. 4 Including funds financing new business.
38.8
137
Backup: Risk management – Risk transfer
Munich Re's maximum in-force nat cat protection
€m
Munich Re's maximum in-force nat cat protection as at July 2015
1,400
Cat bonds
Risk swaps
1,200
Sidecars
1,000
Indemnity retro
800
2015 protection (total)
600
400
200
0
US windstorm
northeast
US windstorm
southeast
Slight reduction of retro limit
reflecting increased AFR
US earthquake
EU windstorm
Broadening of territorial
scope for indemnity retro
protection to worldwide
EU other perils1
Japan
earthquake
Australia
cyclone
Establishment of strategic
partnership with investors via
sidecars Eden Re I + II
Reduced spending for retro due to strong Munich Re capital base
As at January 2015. Protection before reinstatement premiums.
1 Earthquake Europe, including Turkey.
138
Backup: ERGO – Market Consistent Embedded Value 2014
MCEV result 2014 – ERGO
€m
MCEV – ERGO
MCEV 31.12.2013
Opening adjustments
Adjusted MCEV 31.12.2013
Economic variances
Other non-operating variance
Total MCEV earnings
MCEV before closing adjustments
Closing adjustments
MCEV 31.12.2014
5,949
Value of
new business
135
Expected
return
135
–153
5,796
–520
–1,177
0
Experience
variances
–172
Assumption
changes
–122
Other operating
variance
–496
Operating
MCEV earnings
–520
–1,697
4,099
67
4,166
139
Backup: ERGO Life Germany – Market Consistent Embedded Value 2014
MCEV result 2014 – ERGO Life Germany
€m
MCEV – ERGO Life Germany
MCEV 31.12.2013
Opening adjustments
Economic variances
Total MCEV earnings
Closing adjustments
MCEV 31.12.2014
1,239
Value of
new business
5
49
1,288
Expected
return
43
–564
–1,401
0
–1,965
–677
Experience
variances
–231
Assumption
changes
8
Other operating
variance
–389
Operating
MCEV earnings
–564
0
–677
140
Backup: ERGO International life – Market Consistent Embedded Value 2014
MCEV result 2014 – ERGO International life
€m
MCEV – ERGO International life
MCEV 31.12.2013
Opening adjustments
Economic variances
Total MCEV earnings
Closing adjustments
MCEV 31.12.2014
1,551
–53
1,498
Value of
new business
43
Expected
return
23
Experience
variances
61
Assumption
changes
–192
–90
–227
0
–316
1,182
Other operating
variance
–25
Operating
MCEV earnings
–90
67
1,249
141
Backup: ERGO Health – Market Consistent Embedded Value 2014
MCEV result 2014 – ERGO Health
€m
MCEV – ERGO Health
MCEV 31.12.2013
Opening adjustments
Economic variances
Total MCEV earnings
Closing adjustments
MCEV 31.12.2014
3,159
–149
3,010
Value of
new business
86
Expected
return
70
Experience
variances
–3
Assumption
changes
62
134
450
0
585
3,595
Other operating
variance
–82
Operating
MCEV earnings
134
0
3,595
142
Backup: Reinsurance Life – Market Consistent Embedded Value 2014
MCEV result 2014 – Reinsurance Life
€m
MCEV – Reinsurance Life
MCEV 31.12.2013
Opening adjustments
Economic variances
Total MCEV earnings
Closing adjustments
MCEV 31.12.2014
9,382
Value of
new business
453
Expected
return
297
2
9,384
322
121
–205
Experience
variances
63
Assumption
changes
–131
Other operating
variance
–361
Operating
MCEV earnings
322
237
9,621
847
10,469
143
Backup: Market Consistent Embedded Value 2014
Sensitivities of MCEV
€m
Reinsurance Life
MCEV
Change
in €m
ERGO
Change
in %
MCEV
Change
in €m
Change
in %
Base case
10,469
Interest rates –100bp
10,750
282
2.7
1,599
–2,567
–61.6
Interest rates +100bp
10,075
–394
–3.8
5,414
1,248
29.9
Equity/property values –10%
10,465
–3
–
3,974
–192
–4.6
Equity/property-implied volatilities +25%
10,467
–2
–
4,032
–134
–3.2
Swaption-implied volatilities +25%
10,467
–1
–
3,902
–264
–6.3
Illiquidity premium 10bp
10,517
48
0.5
4,609
443
10.6
Maintenance expenses –10%
10,593
124
1.2
4,247
81
1.9
Lapse rates –10%
10,810
341
3.3
4,077
–89
–2.1
Lapse rates +10%
10,174
–294
–2.8
4,251
85
2.0
Mortality/morbidity (life business) –5%
12,552
2,083
19.9
4,241
75
1.8
Mortality (annuity business) –5%
10,312
–156
–1.5
4,070
–96
–2.3
4,112
–6,357
–60.7
4,124
–42
–1.0
10,527
59
0.6
5,062
896
21.5
No mortality improvements (life business)
Solvency II yield curve
4,166
144
Sensitivities of value of new business
€m
Reinsurance Life
VNB
Change
€m
ERGO
Change
%
VNB
Change
€m
Change
%
Base case
453
Interest rates –100bp
458
5
1.0
48
–87
–64.6
Interest rates +100bp
441
–12
–2.7
160
25
18.1
Equity/property values –10%
452
–1
–0.2
132
–3
–2.4
Equity/property-implied volatilities +25%
453
–
–
136
1
0.5
Swaption-implied volatilities +25%
453
–
–
120
–15
–11.0
Illiquidity premium 10bp
450
–3
–0.7
143
7
5.4
Maintenance expenses –10%
473
20
4.4
140
5
3.5
Lapse rates –10%
531
78
17.1
146
11
8.0
Lapse rates +10%
387
–66
–14.5
136
1
0.8
Mortality/morbidity (life business) –5%
616
163
35.9
146
11
7.8
Mortality (annuity business) –5%
401
–52
–11.5
136
1
0.4
98
–355
–78.3
130
–5
–3.9
465
12
2.6
145
10
7.4
No mortality improvements (life business)
Solvency II yield curve
135
145
IFRS uplift
€m
Reinsurance Life
31.12.2013
31.12.2013
Value not recognised in IFRS equity (IFRS uplift)
IFRS
equity
€m
ERGO
Value not recognised in IFRS equity (IFRS uplift)
IFRS
equity
5,527
3,947
3,855
9,382
MCEV
MCEV
31.12.2014
IFRS
equity
2,002
5,949
31.12.2014
IFRS
equity
7,066
5,101
– 935
3,403
MCEV
10,469
MCEV
4,166
146
Backup: Shareholder information
Development of shares in circulation
Shares (millions)
31.12.
2013
Acquisition of own
shares in Q1–4 2014
Shares in circulation
177.4
–8.9
1.9
8.9
–6.4
4.4
179.3
–
–6.4
172.9
Own shares held
Total
Retirement of own
shares in Q1–4 2014
31.12.
2014
168.5
Weighted average number of shares in circulation (millions)
178.0
177.7
179.1
172.2
169.3
2011
2012
2013
Q1–4 2014
Q4 2014
147
Financial calendar
2015
23 April
Annual General Meeting, ICM – International Congress Centre Munich
7 May
Interim report as at 31 March 2015
30 June
Investor Day, London
6 August
Interim report as at 30 June 2015
5 November
Interim report as at 30 September 2015
148
For information, please contact
INVESTOR RELATIONS TEAM
Christian Becker-Hussong
Thorsten Dzuba
Christine Franziszi
Head of Investor & Rating Agency Relations
Tel.: +49 (89) 3891-3910
E-mail: [email protected]
Tel.: +49 (89) 3891-8030
Tel.: +49 (89) 3891-3875
Britta Hamberger
Ralf Kleinschroth
Andreas Silberhorn
Tel.: +49 (89) 3891-3504
Tel.: +49 (89) 3891-4559
Tel.: +49 (89) 3891-3366
Angelika Rings
Andreas Hoffmann
Ingrid Grunwald
Tel.: +49 (211) 4937-7483
Tel.: +49 (211) 4937-1573
Tel.: +49 (89) 3891-3517
Münchener Rückversicherungs-Gesellschaft | Investor & Rating Agency Relations | Königinstraße 107 | 80802 München, Germany
Fax: +49 (89) 3891-9888 | E-mail: [email protected] | Internet: www.munichre.com
149
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 2010 are shown on a partly consolidated basis.
"Partly consolidated" means before elimination of intra-Group transactions across segments.
ERGO new segmentation: 2009–2010 before elimination of business with Munich Re, 2011–2014
consolidated, after elimination of all intra-Group business, 2013–2014 new segmentation, earnings include
share of holding costs.
150

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