Muenchener Rueckversicherung : Presentation (Christoph Jurecka) (PDF, 1.7 MB)

Quarterly statement as at 30 September 2020

5 November 2020

Christoph Jurecka

Image: Klaus Ohlenschläger / dpa Picture Alliance

Quarterly statement

as at 30 September 2020

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2

3

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5

Munich Re ERGO

Reinsurance Outlook

Backup

Quarterly statement as at 30 September 2020

5 November 2020

2

Munich Re

1

Image: Vertigo3d / Getty ImagesiStockphoto

Munich Re - Financial highlights Q3 2020

Munich Re posts a decent Q3 result considering high major losses

Munich Re

Net result

€199m (€999m) Reinsurance result of €63m

impacted by COVID-19 related claims and other major losses - strong ERGO result of €136m

Return on investment1

2.7% (2.8%)

Reinsurance: 3.7% - benefited from disposal gains

									Q3 2020 (9M 2020)
Technical result		Investment result		Net result
€m				€m				€m
		2,431				5,826	5,308			2,490
			606	2,150 1,691			865			999
538	87				199
Q3	Q3	9M	9M	Q3	Q3	9M	9M	Q3	Q3	9M	9M
2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020

ERGO: 2.1% - impacted by equity impairments and derivative losses

Shareholders' equity

€29.6bn (-3.1% vs. 31.12.)

Return on equity1: 3.6% (5.9%)

Solvency II ratio: 216%

Reinsurance

Life and Health: Technical result incl. fee income: €56m (€160m) - Negative COVID-19 impact of ~€100m in Q3

- net result of €86m (€153m)

Property-casualty: 112.2% (106.1%) - Major-loss ratio:

26.7% (21.0%); Reserve releases2: -4.0%(-4.0%) - net result of -€23m (€446m)

ERGO

L&H Germany: RoI: 2.2% (2.6%) - net result of €31m (€99m)

Property-casualty Germany: C/R: 90.9% (92.2%) - net result of €48m (€120m)

International: C/R: 92.5% (92.6%) - net result of €57m (€162m)

1 Annualised. 2 For prior-year basic losses.

Quarterly statement as at 30 September 2020

5 November 2020

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Munich Re - COVID-19

L&H reinsurance - Increase in COVID-19-related claims consistent with pandemic development in different regions

COVID-19 related losses in L&H reinsurance

• Losses dominated by far by the US
• Q3: ~€100m / 9M: ~€200m
• 9M includes COVID-19 related claims expected to be incurred by 30 September - no specific provisions for COVID-19-related deaths after 30 September established
• Limited loss activity on disability lines so far

Outlook/

Projection 2020

• Claims development depends on further mortality experience, esp. in North America
• As expected, portfolio mortality rates are well below that of the general population
• Each 5% of extra mortality claims in our book leads to excess annual claims cost of ~€200m1
• Still far away from 200-year event scenario2 of ~€1.4bn
• Risk of disability claims depends on economic development
• UK longevity is expected to offset UK mortality claims

1 Estimate based on a stress test with simplistic assumptions, e.g. no differentiation between markets, no specific age distributions of our exposure and lethality	Quarterly statement as at 30 September 2020	5 November 2020	5
of the pandemic.; only refers to mortality business. 2 Scenario based on the assumption of 10m incremental global deaths.

Munich Re - COVID-19

P-C reinsurance - Continuous worsening of the pandemic leaving its mark in Q3

COVID-19 related losses in P-C Reinsurance

• Losses across various lines of business, contingency losses making up the largest share
• Q3: ~€700m / 9M: ~€2.1bn
• Material reserve increase in Q3 due to the continuous worsening of the pandemic and recent reintroduction of restrictions in many countries
• 9M figures include COVID-19-related claims incurred through 30 September, reserved cautiously across affected lines of business
• 9M: ~€300m in paid claims and client-reported case reserves in reinsurance, ~€1.8bn IBNR1

Outlook/

Projection 2020

• Risk of further contingency claims continues, depending on development of the pandemic
• Claims in other lines of business are also expected to increase
• • BI: focus on non-damage BI policies - contract wording is crucial (e.g. FCA ruling provides a differentiated view)
  • Less exposure to further deterioration expected in credit given government interventions and exposure management of our cedants
  • Less exposed in workers' comp. and D&O

1 Including €540m claims (direct business) for which we gave confirmation of coverage in 9M 2020.

Quarterly statement as at 30 September 2020

5 November 2020

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Munich Re - Capitalisation

Capital position

Equity					€m
Equity 31.12.2019	30,576			Change in Q3
Consolidated result	999	199
Changes
Dividend		-1,373	0
Unrealised gains/losses	1,158	372
Exchange rates		-931			-651
Share buy-backs		-359	0
Other		-429			-45
Equity 30.9.2020	29,641			-125

Unrealised gains/losses	Exchange rates
Fixed-interest securities	Devaluation of various currencies,
9M: €1,885m	Q3: €306m	mainly USD
Non-fixed-interest securities
9M: -€743m	Q3: €62m

Capitalisation			€bn
	0.3	0.3	0.3	0.3
0.3	3.8			5.0
3.9	3.7
3.7

13.2		12.6		15.1
12.0	11.9
26.5	30.6	29.1	29.8	29.6
2018	2019	31.3.2020	30.6.2020	30.9.2020

Debt leverage1 (%)

Senior and other debt

Subordinated debt

Equity

1 Strategic debt (senior, subordinated and other debt) divided by total capital (strategic debt + equity).

Quarterly statement as at 30 September 2020

5 November 2020

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Munich Re - Investments

Investment portfolio

Investment portfolio1

% Portfolio management in Q3

Land and buildings 4.9 (4.7)

Miscellaneous2 8.1 (8.1)

Shares, equity funds and participating interests3 5.9 (7.1)

TOTAL

€252bn

Fixed-interest securities 55.4 (53.9)

Loans

25.8 (26.1)

• Investments in longer term US and Australian government bonds as well as short-term bank bonds and ABS at the expense of covered bonds
• Slight expansion of equity exposure despite disposal of strategic equity investments
• Ongoing increase of infrastructure and private equity investments
• Drop in reinvestment yield to 1.3%

Portfolio duration1

Reinsurance

ERGO

Munich Re

								DV011,4					€m
			Assets Liabilities						Assets	Liabilities	Net
6.9 (6.5)			7.4 (6.3)	51 (46)			41 (34)		10
9.9 (9.4)							10.6 (10.1)	138 (126)				151 (139)	-13
8.9 (8.4)					9.7 (9.0)	189 (172)					192 (173)	-3

1 Fair values as at 30.9.2020 (31.12.2019). 2 Deposits retained on assumed reinsurance, deposits with banks, investment funds (excl. equities), derivatives	Quarterly statement as at 30 September 2020	5 November 2020	8
and investments in renewable energies and gold. 3 Net of hedges: 4.8% (6.4%). 4 Market value change due to a parallel downward shift in yield curve by

one basis point, considering the portfolio size of assets and liabilities (pre-tax). Negative net DV01 means rising interest rates are beneficial.

Munich Re (Group) - Investments

Investment result

€m										Q3 2020	Return1	9M 2020	Return1		9M 2019	Return1
Regular income							1,536	2.4%		4,801	2.6%	5,133		2.8%
Write-ups/write-downs							-265	-0.4%	-1,832	-1.0%		-285	-0.2%
Disposal gains/losses							644	1.0%		2,210	1.2%	1,671		0.9%
Derivatives2							-65	-0.1%	629	0.3%		-208	-0.1%
Other income/expenses						-159	-0.3%	-500	-0.3%		-485	-0.3%
Investment result							1,691	2.7%		5,308	2.8%	5,826	3.2%
Total return									3.8%					4.4%				12.1%
3-month						Write-ups/		Disposal									Write-ups/		Disposal
reinvestment yield	Q3 2020		write-downs gains/losses Derivatives	9M 2020			write-downs	gains/losses	Derivatives
Q3 2020	1.3%		Fixed income		-7	321		26		Fixed income				-22	1,358		605
Q2 2020	1.6%		Equities		-207	318		-103	Equities				-1,671	551		78
	Commodities/Inflation		-2	0		22		Commodities/Inflation	39			0		38
Q1 2020	1.9%		Other		-50	5		-10	Other				-178	301		-91

1 Annualised return on quarterly weighted investments (market values) in %. 2 Result from derivatives without regular income and other income/expenses.

Quarterly statement as at 30 September 2020

5 November 2020

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ERGO

2

Image: dem10 / iStockphoto Getty Images

ERGO

ERGO Life and Health Germany

Gross premiums written	€m
9M 2019	6,912
Foreign exchange	-1
Divestments/investments	0
Organic change	-193
9M 2020			6,718

▪ Life (-€80m): Growth through new products

Major result drivers									€m
		9M 2020	9M 2019		Q3 2020	Q3 2019	
Technical result	331	234	96			306	81	225
Non-technical result		-56	-28	-28	-166	-128	-38
thereof investment result	2,454	2,985	-531	697	985	-288
Other		-175	-63	-112	-110	54	-164
Net result		99	143	-43			31	8	23
Technical result			Investment result

	only partially compensating for ordinary
	attrition of back book
▪	Health (-€141m): Increase in comprehensive
	and supplementary insurance, negative
	COVID-19 effect in Travel
▪	Digital Ventures (+€27m): Growth in health
	insurance (esp. dental products)

• Q3: Interdependency between investment and technical result - COVID-19 leading to high intra-year volatility with positive impact in Q3
• 9M: Decrease in Travel due to COVID-19; improved result in Health

• 9M: Higher impairments of equities during volatile capital market environment due to COVID-19, partly offset by disposal gains and hedging
• Q3: Decrease driven by higher impairments and lower derivatives result; Return on investment of 2.2%

Other

• FX result of -€91m in 9M (9M 2019: €54m),
  thereof -€65m in Q3 (Q3 2019: €94m)

Quarterly statement as at 30 September 2020

5 November 2020

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ERGO

ERGO Property-casualty Germany

Gross premiums written	€m
9M 2019	2,804
Foreign exchange	5
Divestments/investments	0
Organic change	134
9M 2020		2,943

Major result drivers								€m
		9M 2020	9M 2019		Q3 2020	Q3 2019	
Technical result	237	231	6		92	81	11
Non-technical result		-34	-80	47		-14	-20	6
thereof investment result	122	105	17		29	34	-5
Other		-84	-46	-38	-30	-26	-4
Net result		120	105	15		48	36	13

• Organic growth in almost all lines of business; mainly driven by fire/property (+€43m), liability (+€29m), motor (+€24m) and other insurance (+€35m)

Technical result

Combined ratio of 92.2% in 9M at guidance level, 90.9% in Q3 due to

• Strong premium development
• Nat-catlosses significantly below expectations
• Minor COVID-19 effects from business closure and event cancellation; lower costs

Investment result

• 9M: Disposal gains and hedging more than offset impairments on equities
• Q3: Disposal gains partly offset impairments on equities and lower derivatives result
• Q3: Return on investment of 1.5%

Quarterly statement as at 30 September 2020

5 November 2020

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ERGO

ERGO Property-casualty Germany

Combined ratio

% Gross premiums written in 9M 2020 (9M 2019)

€m

• Loss ratio ◼ Expense ratio

2018	96.0	62.5	33.4
2019	92.3	60.3	32.0
9M 2020	92.2	61.6	30.6
Q3 2020	90.9	61.9	29.0

97.9	98.1
	92.1	93.2	93.4	92.5	90.9
	86.2

Other	Motor
259 (224)	617 (593)

Marine 182 (165)

TOTAL	Fire/property
€2,943m
585 (542)
(€2,804m)

Legal protection 316 (318)

Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Personal accident	Liability
449 (458)	534 (505)
2018	2019	2019	2019	2019	2020	2020	2020

Quarterly statement as at 30 September 2020

5 November 2020

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ERGO

ERGO International

Gross premiums written	€m
9M 2019	3,657
Foreign exchange	-32
Divestments/investments	-103
Organic change	63
9M 2020		3,584

▪ Life (-€37m): Lower level due to run-down in

Major result drivers								€m
		9M 2020	9M 2019		Q3 2020	Q3 2019	
Technical result	189	191	-2	78	96	-18
Non-technical result	20	1	19		1	44	-42
thereof investment result	260	298	-38	81	138	-57
Other		-47	-100	53		-22	-64	42
Net result		162	92	70		57	76	-19
Technical result			Investment result

Belgium and reduced new business in Austria

related to COVID-19

▪ Health (+€66m): Positive business

development in Spain and Belgium

▪ P-C (-€102m): Decrease mainly driven by

portfolio streamlining in 2019, lower growth in

Poland due to COVID-19

Highlights in Q3:

• Life: Decrease driven by Belgium
• Health: Good quarter due to seasonal effects, tariff increases and favourable claims development
• P-C: Ongoing good operational performance (esp. Poland, Baltics), reduced attritional claims and lower large losses

• 9M/Q3: Previous year impacted by disposal gains due to portfolio streamlining
• Q3: Return on investment of 1.6%

Other

• FX result of €0m in 9M (9M 2019: -€57m),
  thereof €1m in Q3 (Q3 2019: -€38m)

Quarterly statement as at 30 September 2020

5 November 2020

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ERGO

ERGO International

Combined ratio

% Gross premiums written in 9M 2020 (9M 2019)

€m

94.5	95.4	95.0	91.8	94.8	95.2
					90.1
Q4	Q1	Q2	Q3	Q4	Q1	Q2
2018	2019	2019	2019	2019	2020	2020

9M 2020

91.7 89.6 89.7 89.4 85.5 101.4

Poland Spain Austria Baltics Greece Legal protection

Property-casualty1,985 (2,087)

92.5							TOTAL
							€3,584m
							(€3,657m)
	Q3
2020
			P-C		9M	9M	Life
92.6	thereof:	2020		2019		thereof:
Poland	1,056		1,080		Austria
					Belgium
			Legal protection	497		476
			Greece	180		173		Health
			Baltics	145		144		thereof:
					Spain
Total	Austria	79		74
		Belgium

Life 470 (507)

Health 1,129 (1,062)

9M 9M

2020 2019

1. 266

1. 114

9M 9M

2020 2019

1. 615

1. 448

Quarterly statement as at 30 September 2020

5 November 2020

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Reinsurance

3

Image: John Lund Getty Images

Reinsurance

Reinsurance - Life and Health

Gross premiums written	€m
9M 2019	8,625
Foreign exchange	-33
Divestments/investments	0
Organic change	946
9M 2020		9,538

Major result drivers								€m
		9M 2020	9M 2019		Q3 2020	Q3 2019	
Technical result	31	322	-291	10	194	-184
Non-technical result	207	369	-162	110	103	7
thereof investment result	639	866	-227	239	279	-40
Other		-85	-75	-10	-34	-15	-19
Net result	153	617	-464	86	282	-196

• Organic growth mainly in Asia and Europe, but also some growth across North America
• Asia: Several new transactions and increases of shares/volumes under existing treaties
• Europe: Positive impact from longevity transactions concluded in Q2

Technical result incl. fee income of €56m (€160m)

• COVID-19-relatedclaims of ~€100m in Q2 and again inQ3, dominated by US mortality
• In North America: non-COVID-19-related claims higher than expected and some impact from lower interest rates on claims reserves …
• … largely offset by strong results in
  Europe and Asia as well as better-than- expected performance in Australia
• Ongoing pleasing fee income

Investment result

• 9M/Q3: Disposal gains on fixed income investments from ordinary portfolio turnover clearly exceed write-downs on equities from H1
• Q3: Positive one-off effect from disposal of strategic equity investments
• Q3: Return on investment: 3.2%

Other

• FX result of -€5m in 9M (9M 2019: €83m),
  thereof -€19m in Q3 (Q3 2019: €41m)

Quarterly statement as at 30 September 2020

5 November 2020

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Reinsurance

Reinsurance - Property-casualty

Gross premiums written	€m
9M 2019	16,920
Foreign exchange	-17
Divestments/investments	0
Organic change	1,576
9M 2020		18,479

• Organic growth across almost all lines driven by business expansion and rate increases in traditional reinsurance …
• … as well as in our Risk Solutions portfolio

Major result drivers								€m
		9M 2020	9M 2019		Q3 2020	Q3 2019	
Technical result		-182	1,453	-1,635	-399	87	-486
Non-technical result	762	341	421		334	306	28
thereof investment result	1,834	1,572	261	646	715	-69
Other		-115	-259	144		42	71	-29
Net result	466	1,535	-1,069	-23	464	-486
Technical result			Investment result

• COVID-19-relatedclaims of ~€2.1bn in ▪ 9M: Gains on fixed-income/ real estate disposals

9M (thereof ~€0.7bn in Q3), contingency	and derivatives clearly exceed write-downs on
business accounts for the largest share	equities
▪ Expense ratio improved due to cost	▪ Q3: Disposal gains on fixed income and strategic
reductions and premium growth	equity investments
▪ Underlying performance remains very	▪ Q3: Return on investment: 3.9%
strong - normalised combined ratio at	Other
~97% in Q3 and 9M
	▪ FX result of €170m in 9M (9M 2019: €251m),
	thereof -€20m in Q3 (Q3 2019: €137m)

Quarterly statement as at 30 September 2020

5 November 2020

18

Reinsurance

Reinsurance - Property-casualty

Combined ratio

%

◼ Basic losses

◼ Major losses

◼ Expense ratio

111.6112.2

105.1

103.9

106.0

97.3

99.9

86.9

Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
2018	2019	2019	2019	2019	2020	2020	2020

2018	99.4	53.6		11.6	34.2
	100.2
2019	51.4		15.2	33.6
	106.1
9M 2020	54.8			21.0	30.3
	112.2
Q3 2020	55.6			26.7	29.9

		Major					Reserve	Normalised
		losses		Nat cat	Man-made	releases1	combined ratio2
9M 2020	21.0	5.1	15.9	-4.0	97.0
Q3 2020	26.7	8.3	18.4	-4.0	97.0
Ø Annual	~12.0	~8.0	~4.0	~-4.0
expectation

1 Basic losses prior years, already adjusted for directly corresponding sliding-scale and profit-commission effects.	Quarterly statement as at 30 September 2020	5 November 2020	19
2 Based on reserve releases of 4%-pts. Normalised combined ratio reflects a one-off shift between commissions and non-technical result of €29m in Q3 2020

(corresponding to -0.5%-pts. in Q3 and -0.2%-pts. in 9M).

Outlook

4

Image: Klaus Ohlenschläger / dpa Picture Alliance

Outlook 2020

Group

Gross premiums written

~€54bn

ERGO

Gross premiums written1

~17.5bn

Reinsurance

Gross premiums written

~€36bn

Net result

withdrawn

Net result1

~€530m

Net result

withdrawn

Return on investment1

~3%

Combined ratio
P-C Germany1	International1
~92%	~94%

Combined ratio	Technical result, incl. fee income
Property-casualty	Life and Health
withdrawn	withdrawn

1 Substantial risk of falling short of this guidance, subject to the further development of the COVID-19 pandemic.

Quarterly statement as at 30 September 2020

5 November 2020

21

Backup

5

Image: imaginima / Getty Images

Backup: Group finance and risk

Segment income statement Q3 2020

€m	Reinsurance	Reinsurance	ERGO	ERGO	ERGO	Total
	L/H1	P-C	L/H Germany	P-C Germany	International	Q3 2020
Gross premiums written	3,127	6,798	2,254	808	1,162	14,150
Net earned premiums	2,844	5,680	2,254	917	1,133	12,827
Income from technical interest	169	286	904	17	94	1,470
Net expenses for claims and benefits	-2,504	-4,666	-2,482	-576	-844	-11,072
Net operating expenses	-499	-1,698	-369	-266	-305	-3,137
Technical result	10	-399	306	92	78	87
Investment result	239	646	697	29	81	1,691
Insurance-related investment result	24	-10	116	0	46	175
Other operating result	17	-16	-75	-26	-31	-131
Deduction of income from technical interest	-169	-286	-904	-17	-94	-1,470

Non-technical result

Operating result

110	334	-166	-14	1	265
120	-65	140	78	79	353

Other non-operating result	1		-2	-29	-7	5	-31
Currency result		-19	-20	-65	4	1	-100
Net finance costs		-10	-31	-6	-2	-7	-54
Taxes on income		-6	96		-10	-25	-22	32
Net result		86	-23	31	48	57	199
Tax rate		7.0%		80.8%		24.8%		33.9%		27.7%		-19.4%

1 Technical result incl. fee income: €56m.

Quarterly statement as at 30 September 2020

5 November 2020

23

Backup: Group finance and risk

Segment income statement 9M 2020

€m	Reinsurance	Reinsurance	ERGO	ERGO	ERGO	Total
	L/H1	P-C	L/H Germany	P-C Germany	International	9M 2020
Gross premiums written	9,538	18,479	6,718	2,943	3,584	41,261
Net earned premiums	8,575	16,668	6,743	2,635	3,367	37,988
Income from technical interest	501	837	2,010	51	55	3,455
Net expenses for claims and benefits	-7,491	-12,634	-7,379	-1,642	-2,306	-31,453
Net operating expenses	-1,554	-5,053	-1,043	-806	-927	-9,383
Technical result	31	-182	331	237	189	606
Investment result	639	1,834	2,454	122	260	5,308
Insurance-related investment result	34	-43	-276	0	-89	-374
Other operating result	35	-192	-223	-105	-96	-580
Deduction of income from technical interest	-501	-837	-2,010	-51	-55	-3,455

Non-technical result

Operating result

207	762	-56	-34	20	899
238	580	275	203	209	1,505

Other non-operating result	1		-10	-32	-12	5	-48
Currency result		-5	170		-91	-7	0	67
Net finance costs		-29	-93	-16	-5	-20	-164
Taxes on income		-51	-181	-36	-60	-32	-360
Net result		153	466	99	120	162	999
Tax rate		25.0%		28.0%		26.4%		33.5%		16.7%		26.5%

1 Technical result incl. fee income: €160m.

Quarterly statement as at 30 September 2020

5 November 2020

24

Backup: Group finance and risk

Actual vs. analysts' consensus

Operating result - Actual vs. analysts' consensus1	€m		KPIs - Actual vs. analysts' consensus1	€m
			Q3 2020		Consensus Difference				Q3 2020	Consensus	Impact2
	Reinsurance Property-casualty		-65		-57	-8		Combined ratio	112.2%	109.2%	-172
	Reinsurance Life and Health	120	98			22		Tech. result incl. fee income		€56m
	ERGO Life and Health Germany	140	132			8
	ERGO Property-casualty Germany	78	87			-9		Combined ratio	90.9%		91.8%		8
	ERGO International	79	82			-3		Combined ratio	92.5%		94.4%		16
	Operating result		353		342			11

RoI by segment - Actual vs. analysts' consensus

FX		-100						Reinsurance P-C
Other		-86						Reinsurance L&H
						ERGO L&H Germany
Taxes	32
					ERGO P-C Germany
Net result		199		195		4		ERGO International

3.9%		Presumably
3.2%		above consensus
2.2%		Presumably
1.5%
	below consensus
1.6%

1 Simple average of estimates the Munich Re Investor Relations team has gathered from analysts covering Munich Re, not taking into account any external	Quarterly statement as at 30 September 2020	5 November 2020	25
data providers. 2 Difference between actual and consensus times net earned premiums.

Backup: Group finance and risk

Premium development

Gross premiums written		€m
			38,917
9M 2019
Foreign			-78
exchange
Divestments/				-103
investments
Organic			2,526
change
9M 2020			41,261

Segmental breakdown

Reinsurance

Property-casualty

18,479 (45%) ( 9.2%)

TOTAL

€41.3bn

Reinsurance

Life and Health

9,538 (23%) ( 10.6%)

€m

ERGO Life and Health Germany

6,718 (16%) ( -2.8%)

ERGO Property-casualty Germany

2,943 (7%) ( 4.9%)

ERGO

International

3,584 (9%) ( -2.0%)

Quarterly statement as at 30 September 2020

5 November 2020

26

Backup: Reinsurance

Development of combined ratio

Combined ratio vs. basic losses (%)

Combined ratio

Basic loss ratio

103.9	88.6	102.0	100.7	105.1	97.3	86.9	103.9	111.6	106.0	99.9	112.2

55.6	53.2	55.7	55.3	50.4	54.8	50.1	54.7	46.4	54.7	54.1	55.6
Q4 2017	Q1 2018	Q2 2018	Q3 2018	Q4 2018	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020

Nat cat vs. man-made(%)

			Nat cat ratio
12.0			Man-made ratio		14.1				21.1	17.4	11.7
		11.0	10.5	5.7		10.8
2.6	3.1
0.0	-1.1	2.3	2.0	3.8	4.0	0.9	7.6	6.3	3.7	3.1

18.4

8.3

Q4 2017

Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Quarterly statement as at 30 September 2020

5 November 2020

27

Backup: Group finance and risk - Investments

Return on investment by asset class and segment

9M 2020

%1							Regular	Write-ups/	Disposal		Extraord.	Other			ᴓ Market
						income	-downs	result	derivatives result	inc./exp.	RoI	value (€m)
Afs fixed-income				2.0		0.0		1.0			-	-	3.0		134,700
Afs non-fixed-income				4.8		-13.4	4.4			-	-	-4.2	16,599
Derivatives						4.0		-	-		27.5		-1.1	30.4		3,048
Loans						2.7		0.0		0.7			-	-	3.4		64,917
Real estate						4.6		-1.2	3.2			-	-	6.6		12,173
Other2						2.6		-0.3		0.1			-		-3.6		-1.1		17,637
Total						2.6		-1.0		1.2			0.3		-0.3		2.8		249,073
Reinsurance						2.6		-0.4	1.1			0.5		-0.3	3.5		95,282
ERGO						2.6		-1.3		1.2			0.2		-0.2		2.5		153,791
3.4%			Return on investment			Average 3.0%	3.2%		3.4%	3.2%		3.1%
3.1%	3.1%							3.0%							2.7%
			2.9%							2.7%
				2.3%
Q4 2017	Q1 2018	Q2 2018	Q3 2018		Q4 2018	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020

1 Annualised. 2 Including management expenses.

Quarterly statement as at 30 September 2020

5 November 2020

28

Backup: Investments

Investment result - Reinsurance

Reinsurance Life and Health (€m)		Q3 2020	Return1	9M 2020	Return1	9M 2019	Return1
Regular income	186	2.5%		572	2.6%		600	2.9%
Write-ups/write-downs		-4	0.0%		-18	-0.1%	0	0.0%
Disposal gains/losses	80	1.1%		130	0.6%		274	1.3%
Derivatives2		-3	0.0%		17	0.1%		4	0.0%
Other income/expenses		-21	-0.3%	-63	-0.3%	-13	-0.1%
Investment result	239	3.2%		639	2.9%		866	4.1%
Average market value			29,675			29,499			27,961
Reinsurance Property-casualty(€m)		Q3 2020	Return1	9M 2020	Return1	9M 2019	Return1
Regular income	414	2.5%		1,268	2.6%		1,420	3.0%
Write-ups/write-downs		-57	-0.3%	-281	-0.6%	-114	-0.2%
Disposal gains/losses	322	2.0%		682	1.4%		444	0.9%
Derivatives2	25	0.2%		345	0.7%		10	0.0%
Other income/expenses		-58	-0.4%	-180	-0.4%	-187	-0.4%
Investment result	646	3.9%	1,834	3.7%	1,572	3.3%
Average market value			65,694		65,783		63,310

1 Return on quarterly weighted investments (market values) in % p.a. 2 Result from derivatives without regular income and other income/expenses.

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29

Backup: Investments

Investment result - ERGO

Life and Health Germany (€m)			Q3 2020	Return1	9M 2020	Return1	9M 2019	Return1
Regular income	819	2.6%			2,587	2.7%			2,722	2.9%
Write-ups/write-downs			-182	-0.6%	-1,426	-1.5%	-180	-0.2%
Disposal gains/losses	217	0.7%			1,280	1.3%			827	0.9%
Derivatives2			-78	-0.2%	244	0.3%			-137	-0.1%
Other income/expenses			-78	-0.2%	-231	-0.2%	-248	-0.3%
Investment result	697	2.2%		2,454	2.6%		2,985	3.2%
Average market value				128,327			127,160			125,888
Property-casualty Germany (€m)			Q3 2020	Return1	9M 2020	Return1	9M 2019	Return1
Regular income	35	1.8%		115	2.0%		119	2.1%
Write-ups/write-downs			-19	-1.0%	-82	-1.5%	-23	-0.4%
Disposal gains/losses	17	0.9%		91	1.6%		73	1.3%
Derivatives2			-7	-0.4%	6	0.1%		-44	-0.8%
Other income/expenses	4	0.2%		-8	-0.1%	-19	-0.3%
Investment result	29	1.5%	122	2.2%	105	1.9%
Average market value				7,566			7,520			7,495

1 Return on quarterly weighted investments (market values) in % p.a. 2 Result from derivatives without regular income and other income/expenses.

Quarterly statement as at 30 September 2020

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30

Backup: Investments

Investment result - ERGO

International (€m)		Q3 2020	Return1	9M 2020	Return1	9M 2019	Return1
Regular income	83	1.7%		259	1.8%		273	2.0%
Write-ups/write-downs		-4	-0.1%	-25	-0.2%	32	0.2%
Disposal gains/losses	9	0.2%		28	0.2%		53	0.4%
Derivatives2		-2	0.0%		17	0.1%		-41	-0.3%
Other income/expenses		-6	-0.1%	-18	-0.1%	-19	-0.1%
Investment result	81	1.6%	260	1.8%	298	2.2%
Average market value			19,630		19,110		18,097

1 Return on quarterly weighted investments (market values) in % p.a. 2 Result from derivatives without regular income and other income/expenses.

Quarterly statement as at 30 September 2020

5 November 2020

31

Backup: Investments

Sensitivities to interest rates, spreads and equities1

Sensitivity to risk-free interest in €bn (change in basis points)		-50bps-25bps +50bps		+100bps
Change in market value, gross	+10.2	+5.0		-9.2		-17.4
Change in on-balance-sheet reserves, net	+2.8	+1.4		-2.6		-4.9
Change in off-balance-sheet reserves, net	+0.4	+0.2		-0.4		-0.8
P&L (Investment result), gross	+0.4	+0.2		-0.4		-0.8
P&L, net	+0.2	+0.1		-0.2		-0.4
Sensitivity to spreads2 in €bn (change in basis points)						+50bps		+100bps
Change in market value, gross						-6.2		-11.7
Change in on-balance-sheet reserves, net						-1.5		-2.8
Change in off-balance-sheet reserves, net						-0.3		-0.5
P&L (Investment result), gross						-0.3		-0.6
P&L, net						-0.1		-0.2
Sensitivity to share prices3 in €bn (change in %)		-30%		-10%	+10%	+30%
Change in market value, gross		-1.7		-0.7	+0.6	+1.4
Change in on-balance-sheet reserves, net		-0.5		-0.2	+0.4	+1.1
P&L (Investment result), gross		-0.8		-0.4	-0.3		-1.4
P&L, net		-0.4		-0.2		-0.0		-0.2

1 Rough calculation with limited reliability assuming unchanged portfolio as at 30.9.2020. After rough estimation of policyholder participation and deferred tax;
linearity of relations cannot be assumed. Approximation - not fully comparable with IFRS figures. 2 Sensitivities to changes of spreads are calculated for	Quarterly statement as at 30 September 2020	5 November 2020	32
every category of fixed income portfolio, except government securities with AAA ratings. 3 Sensitivities to change in share prices are calculated for listed

shares only; assumptions: equity impairments as soon as market value drops below acquisition cost and best-estimate calculation of hedging impact.

Backup: Investments

On- and off-balance-sheet reserves

€m	31.12.	31.12.	30.6.
	2018	2019	2020
Market value of investments	231,876	247,310	249,858
Total reserves	22,002	33,120	35,321
On-balance-sheet reserves
Fixed-interest securities	4,953	10,738	13,058
Non-fixed-interest securities	1,817	3,632	2,355
Other on-balance-sheet reserves1	207	203	130
Subtotal	6,977	14,574	15,544
Off-balance-sheet reserves

30.9.

2020	in Q3
251,928	2,070
36,040	719
13,867	809
2,366	11
130	0
16,364	820

	Real estate2	4,769		5,600	5,631	5,668	37
	Loans3	9,453		12,147	13,292	13,079		-213
	Associates	803		799	855	930	75
	Subtotal	15,024	18,546	19,778	19,676		-101
Reserve ratio	9.5%		13.4%	14.1%	14.3%		0.2 pp
1	Unrealised gains/losses from unconsolidated affiliated companies, valuation at equity and cash-flow hedging.				Quarterly statement as at 30 September 2020	5 November 2020 33
2	Excluding reserves from owner-occupied property. 3 Excluding insurance-related loans.

Backup: Investments

On- and off-balance-sheet reserves

€m		On-balance-sheet reserves	Off-balance-sheet reserves1
Total reserves (gross)	16,364	19,676
Provision for deferred premium refunds		-6,501	-11,690
Deferred tax		-2,295	-2,439
Minority interests		-9	-
Consolidation and currency effects		-101	-
Shareholders' stake	7,458	5,547

1 Excluding reserves for owner-occupied property and insurance-related loans.

Quarterly statement as at 30 September 2020

5 November 2020

34

Backup: Shareholder information

Changes to shares in circulation

				Acquisition of		Retirement of	30.9.
Shares		31.12. own shares in		own shares in
		2020
(millions)	2019		9M 2020		9M 2020
Shares in	141.5		-1.4		-	140.1
circulation
Treasury	2.9	1.4		-4.2		-
shares
Total	144.3		-		-4.2	140.1

Weighted average number of shares in circulation (millions)

148.7	143.6	140.3	140.1

2018

2019

9M 2020

Q3 2020

Quarterly statement as at 30 September 2020

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35

Backup: Shareholder information

Financial calendar

2020

8 December

2021

25 FEBRUARY

17 MARCH

28 APRIL

6 MAY

10 AUGUST

9 NOVEMBER

Investor Day

Balance sheet media conference for 2020 financial statements Analysts' and Investors' call

Annual report (Group), Annual report (Company) Annual General Meeting 2021

Quarterly statement as at 31 March 2021

Half-year financial report as at 30 June 2021

Quarterly statement as at 30 September 2021

Quarterly statement as at 30 September 2020

5 November 2020

36

Backup: Shareholder information

For information, please contact

Investor Relations Team

Christian Becker-Hussong	Thorsten Dzuba	Christine Franziszi
Head of Investor & Rating Agency Relations	Tel.: [phone]	Tel.: [phone]
Tel.: [phone]	Email: [e-mail]	Email: [e-mail]
Email: [e-mail]
Ralf Kleinschroth	Andreas Silberhorn (Rating agencies)	Ingrid Grunwald (ESG)
Tel.: [phone]	Tel.: [phone]	Tel.: [phone]
Email: [e-mail]	Email: [e-mail]	Email: [e-mail]
Maximiliane Gerstner (ERGO)
Tel.: [phone]
Email: [e-mail]

Münchener Rückversicherungs-Gesellschaft | Investor & Rating Agency Relations | Königinstraße 107 | 80802 München, Germany

Fax: [phone] | Email: [e-mail] | Internet: www.munichre.com

Quarterly statement as at 30 September 2020

5 November 2020

37

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. Obvious fluctuations in

the incidence of major losses as well as pronounced volatility of the capital markets and exchange rates - as well as the special features of IFRS accounting make an accurate forecast of results impossible. Moreover, there is considerable uncertainty regarding the further development of the coronavirus pandemic. The Company assumes no liability to update these forward-lookingstatements or to make them conform

to future events or developments. Figures from Q1 2019 onwards are restated reflecting the new cost- allocation method.

Quarterly statement as at 30 September 2020

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