Muenchener Rueckversicherungs-Gesellschaft AG — Audit Report / Information 2007

Feb 25, 2008

Munich Re Group Annual financial statements as at 31.12.2007 – Preliminary figures

Telephone conference with analysts and investors

Nikolaus von Bomhard Jörg Schneider

25 February 2008

Agenda
Executive summary	3
Preliminary results 2007
Munich Re Group in total	6
Reinsurance segment	14
Primary insurance segment	19
Key takeaways and outlook	25
Backup	27

Agenda
Executive summary	3
Preliminary results 2007
Munich Re Group in total	6
Reinsurance segment	14
Primary insurance segment	19
Key takeaways and outlook	25
Backup	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 27
	3

Agenda
Overview	3
Preliminary results 2007
Munich Re Group in total	6
Reinsurance segment	14
Primary insurance segment	19
Key takeaways and outlook	25
Backup	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 27
	6

Preliminary results 2007 – Munich Re Group in total Overview All targets for 2007 achieved
GROUP Group result €m 3,519 1 2006 3,937 2007 Increased guidance of €3.5–3.8bn exceeded	GROUP Investment result €m 8,972 2006 2007 9,272 RoI with strong 5.2% above expectation	20.2% RoRaC3 well above 15% commitment
REINSURANCE Combined ratio property-casualty % 92.6 2006 96.4 2007 Below 97% guidance – despite Kyrill 1 Adjusted due to IAS 8.	PRIMARY INSURANCE Combined ratio property-casualty2 % 2006 90.8 93.4 2007 Again well below 95% guidance	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 Dividend increased by 22% to €5.50 per share

Preliminary results 2007 – Munich Re Group in total Consolidated result All segments contribute to record result
€m	Q1 20071	Q2 2007	Q3 2007	Q4 2007	20061 2007
Reinsurance life and health	172	229	315	9	561 725
Reinsurance property-casualty	626	895	542	526		2,134 2,589
Primary insurance life and health	56	43	178	81	319 358
Primary insurance property-casualty	194	117	164	151	726 626
Asset management	34	13	2	11	53 60	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
Consolidation	–108	–139	15	–189	–274 –421
Consolidated result	974	1,158	1,216	589		3,519 3,937
1 Adjusted due to IAS 8.						9

Preliminary results 2007 – Munich Re Group in total Equity		Over €3bn repatriated to shareholders in 2007
€m
Equity 31.12.20061	26,320
Consolidated result	3,937
Changes Dividend	–988
Unrealised gains/losses2	–1,176
Exchange rates	–531
Share buy-backs	–2,305
Other	201
Equity 31.12.2007	25,458		Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
1 Adjusted due to IAS 8. 2 On other securities.			13

Agenda
Overview	3
Preliminary results 2007
Munich Re Group in total	6
Reinsurance segment	14
Primary insurance segment	19
Key takeaways and outlook	25
Backup	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 27
	14

Preliminary results 2007 – Reinsurance segment Highlights Net profit increased to €3.3bn
REINSURANCE SEGMENT IFRS	REINSURANCE SEGMENT IFRS	REINSURANCE SEGMENT IFRS
Gross premiums written	Investment result	Net profit
€m	€m	€m
22,216	2006	2,695 1
2006	4,402	2006
21,523	4,327	3,314
2007	2007	2007
Adjusted for currency 1.5%	5.3% RoI	Strong improvement in both
growth LIFE	LIFE	P-C and L&H PROPERTY-CASUALTY
European Embedded Value	Operating EEV earnings	Combined ratio
€m	€m	%
5,962	2006	92.6
31.12.2006	525	2006
6,662	701	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
31.12.2007	2007	2007
Increase driven by €859m	11.8% operating embedded	96.4
embedded value earnings	value return	Excellent 91.7% in Q4
1 Adjusted due to IAS 8.		15

Agenda
Overview	3
Preliminary results 2007
Munich Re Group in total	6
Reinsurance segment	14
Primary insurance segment	19
Key takeaways and outlook	25
Backup	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 27
	19

Preliminary results 2007 – Primary insurance segment Highlights Primary insurance contributes nearly €1bn net profit
PRIMARY INSURANCE SEGMENT IFRS	PRIMARY INSURANCE SEGMENT IFRS	PRIMARY INSURANCE SEGMENT IFRS
Gross premiums written	Investment result	Net profit
€m	€m	€m
16,753	2006	1,045 1
2006	5,085	2006
17,286	2007	984
2007	5,565	2007
Increase due to organic growth and acquisition ISVIÇRE	Driven by regular income and disposals	Again at an excellent level
LIFE & HEALTH European Embedded Value €m	LIFE & HEALTH Operating EEV earnings €m	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 PROPERTY-CASUALTY Combined ratio %
4,154	2006	90.8
31.12.2006	742	2006
31.12.2007	478	93.4
5,406	2007	2007
Increase also supported by lower tax rate and capital markets	11.5% operating embedded value return	Very profitable portfolio
1 Incl. legal expenses. 2 Adjusted due to IAS 8.		20

New business (statutory premiums) ERGO new business life insurance Preliminary results 2007 – Primary insurance segment

	Total business					Comments
€m	Total	Single premium	Regular premium	APE1		Germany
2006	1,825	1,208	617	737
2007	1,894	1,282	611	740		International
Δ	+3.8%	+6.1%	–0.8%
	Thereof Germany
€m	Total	Single premium	Regular premium	APE1	€m		Total
2006	1,536	1,035	501	605		2006	289
2007	1,615	1,148	467	582		2007	279
Δ	+5.2%	+10.9%	–6.7%	–3.7%

1 Annual premium equivalent.

Germany

Significant single premium growth Satisfactory new business in unit-linked and corporate pension business

International

• Strong regular premium growth in Poland and Baltic States
• +0.3% Reduction in Italian single premium business

Thereof international

International ƒ Strong regular premium growth in Poland and Baltic States					Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
	Thereof international
€m	Total	Single premium	Regular premium	APE1
2006	289	174	115	133
2007	279	135	144	157
Δ	–3.6%	–22.4%	+24.7%	+18.5%
					23

Agenda
Executive summary	3
Preliminary results 2007
Munich Re Group in total	6
Reinsurance segment	14
Primary insurance segment	19
Key takeaways and outlook	25
Backup	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 27
	25

Agenda
Executive summary	3
Preliminary results 2007 Munich Re Group in total Reinsurance segment	6 14
Primary insurance segment	19
Take aways and outlook	25
Backup	27
	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
	27

Backup: Target and assumption set 2008 Target and assumption set 2008
	RoRaC target: 15%
	Reinsurance	Primary insurance
Gross premiums written	€21.5–22.5bn	€17.5–18.0bn
Currency environment	stable
Normal major losses	NatCat 6.5%	NatCat n.a.
Combined ratio property-casualty	98%	below 95%
European Embedded Value Earnings	8–9%	8–9%
Return on investment	4.5%
Tax environment	stable
Net profit	€2.7–2.9bn	€0.6–0.8bn
Consolidated net profit for the Group	€3.0–3.4bn

Backup
Target and assumption set 2008
Preliminary results 2007
Group financial statements
Assets
Equity and liabilitites
Income statement
Segment reporting
Quarterly figures
Additional information
European Embedded Value 2007	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
	30

Backup: Preliminary results 2007 Consolidated financial statements
Balance sheet as at 31 December 2007 – Assets (1/2)
Assets		31.12.2007		Prev. yr.1	Change
	€m	€m	€m	€m	€m	%
A. Intangible assets
I. Goodwill		3,135		3,229	–94	–2.9
II. Other intangible assets		1,142		1,055	87	8.2
			4,277	4,284	–7	–0,2
B. Investments
I. Land and buildings, including buildings on third party-land		3,753		4,720	–967	–20.5
II. Investments in affiliated companies and associates		1,168		1,303	–135	–10.4
III. Loans		35,502		29,528	5.974	20.2
IV. Other securities
1. Held to maturity	200			252	–52	–20.6
2. Available for sale	119,034			122,915	–3.881	–3.2
3. Held for trading	1,280			1,343	–63	–4.7
		120,514		124,510	–3.996	–3.2
V. Deposits retained on assumed reinsurance		8,206		11,931	–3.725	–31.2
VI. Other investments		4,833		3,060	1.773	57.9
			173,976	175,052	–1.076	–0.6

Balance sheet as at 31 December 2007 – Assets (2/2)
Assets		31.12.2007		Prev. Yr.1	Change
	€m	€m	€m	€m	€m	%
C. Investments for the benefit of life insurance policyholders who bear the investment risk			2,178	1,820	358	19.7
D. Ceded share of underwriting provisions			5,626	6,593	–967	–14.7
E. Receivables
I. Current tax assets		751		710	41	5.8
II. Other receivables		8,636		8,115	521	6.4
			9,387	8,825	562	6.4
F. Cash with banks, cheques and cash in hand			2,505	2,172	333	15.3
G. Deferred acquisition costs
– Gross		8,388		8,298	90	1.1
– Ceded		86		108	–22	–20.4
– Net			8,302	8,190	112	1.4
H. Deferred tax assets			4,619	5,368	–749	–14.0
I. Other assets			3,383	3,541	–158	–4.5
Total assets			214,253	215,845	–1,592	–0.7

1 Adjusted owing to IAS 8.

Equity & Liabilities	31.12.2007		Prev. year1	Change
	€m	€m	€m	€m	%
A. Equity
I. Issued capital and capital reserve	7,388		7,388	–	–
II. Retained earnings	9,781		9,400	381	4.1
III. Other reserves	3,934		5,629	–1,695	–30.1
IV. Consolidated result atrributable to Munich Re equity holders	3,854		3,425	429	12.5
V. Minority interests	501		478	23	4.8
		25,458	26,320	–862	–3.3
B. Subordinated liabilities		4,877	3,419	1,458	42.6
C. Gross technical provisions
I. Unearned premiums	5,719		5,870	–151	–2.6
II. Provision for future policy benefits	94,935		94,660	275	0.3
III. Provision for outstanding claims	44,564		47,076	–2,512	–5.3
IV. Other technical provisions	10,536		10,929	–393	–3.6
		155,754	158,535	–2,781	–1.8

Backup: Preliminary results 2007 Consolidated financial statements Balance sheet as at 31 December 2007 – Equity & liabilities (2/2)
Equity & Liabilities		31.12.2007	Prev. year1	Change
	€m	€m	€m	€m	%
D. Gross underwriting provisions for life insurance policies where the investment risk is borne by the policyholders		2,308	1,930	378	19.6
E. Other accrued liabilities		2,793	2,821	–28	–1.0
F. Liabilities
I. Notes and debentures	341		378	–37	–9.8
II. Deposits retained on ceded business	2,231		2,241	–10	–0.4
III. Current tax liabilities	2,634		2,254	380	16.9
IV. Other liabilities	10,762		9,805	957	9.8
		15,968	14,678	1,290	8.8
G. Deferred tax liabilities		7,095	8,142	–1,047	–12.9
Total equity & liabilities		214,253	215,845	–1,592	–0.7
					Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
1 Adjusted owing to IAS 8.					34

Consolidated financial statements
Income statement
		2007		20061	Change
	€m	€m	€m	€m	€m	%
Gross premiums written	37,262			37,436	–174	–0.5
1. Earned premiums
– Gross	37,187			37,613	–426	–1.1
– Ceded	1,512			1,899	–387	–20.4
– Net		35,675		35,714	–39	–0.1
2. Investment result		9,272		8,972	300	3.3
thereof: income from associates		264		44	220	500.0
3. Other income		2,376		1,784	592	33.2
Total income (1. bis 3.)			47,323	46,470	853	1.8
4. Expenses for claims and benefits
– Gross	31,317			30,815	502	1.6
– Ceded	843			1,035	–192	–18.6
– Net		30,474		29,780	694	2.3
5. Operating expenses
– Gross	9,271			9,333	–62	–0.7
– Ceded	393			499	–106	–21.2
– Net		8,878		8,834	44	0.5
6. Other expenses		2,882		2,375	507	21.3
Total expenses (4. bis 6.)			42,234	40,989	1,245	3.0
7. Result before impairment losses of goodwill			5,089	5,481	–392	–7.2
8. Impairment losses of goddwill			11	4	7	175.0
9. Operating result			5,078	5,477	–399	–7.3
10. Finance costs			333	310	23	7.4
11. Taxes on income			808	1,648	–840	–51.0
12. Consolidated result			3,937	3,519	418	11.9
Thereof: – attributable to Munich Re equity holders			3,854	3,425	429	12.5
– attributable to minority interests			83	94	–11	–11.7
			€	€	€	%
Earnings per share			17.90	15.05	2.85	18.9

1 Adjusted owing to IAS 8.

Consolidated financial statements
Consolidated income statement – Q4/2007
		Q4 2007		Q4 2006 1	Change
	€m	€m	€m	€m	€m	%
Gross premiums written	9,186			9,356	–170	–1.8
1. Earned premiums
– Gross	9,630			9,760	–130	–1.3
– Ceded	378			547	–169	–30.9
– Net		9,252		9,213	39	0.4
2. Investment result		1,636		1,912	–276	–14.4
Thereof: Income from associates		–6		–32	26	81.3
3. Other income		804		531	273	51.4
Total income (1-3)			11,692	11,656	36	0.3
4. Expenses for claims and benefits
– Gross	7,472			7,766	–294	–3.8
– Ceded	269			247	22	8.9
– Net		7,203		7,519	–316	–4.2
5. Operating expenses
– Gross	2,448			2,611	–163	–6.2
– Ceded	66			172	–106	–61.6
– Net		2,382		2,439	–57	–2.3
6. Other expenses		998		844	154	18.2
Total expenses (4-6)			10,583	10,802	–219	–2.0
7. Result before amortisation and impairment losses of goodwill			1,109	854	255	29.9
8. amortisation and impairment losses of goodwill			11	4	7	175.0
9. Operating result			1,098	850	248	29.2
10. Finance costs			95	72	23	31.9
11. Taxes on income			414	109	305	279.8
12. Consolidated result			589	669	–80	–12.0
Thereof: – Attributable to Munich Re equity holders			560	636	–76	–11.9
– Attributable to minority interests			29	33	–4	–12.1
			€	€	€	%
Earnings per share			2.68	2.80	–0.12	–4.3

Backup
Target and assumption set 2008
Preliminary results 2007
Group financial statements
Segment reporting
Assets
Equity and liabilitites
Income statement
Investment result
Expenses for claims and benefits
Operating expenses
Quarterly figures
Additional information
European Embedded Value 2007	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
	37

Reinsurance Life and health Prev.yr. 31.12.07 1 275 1,2402 585 649 2,553 3,427 181 308 – – 11,146 10,932 48,009 48,339 53,655 57,383	Property-casualty 1,202 766 3,281 –	Prev.yr. 31.12.07 1 1,666 2,501 559 215 35,130 29,362 192	Life and health 1,730 3,189 1,063 242	Primary insurance Property-casualty Prev.yr. 31.12.07 1 1,024 94 3,132 1,720 8	1,082 114 3,290 1,585	Prev.yr. 31.12.07 1 11 58 99 7	Asset management 10 67	Prev.yr. 31.12.07 1 –2 –1 106 –8,529 –8,990	Consolidation –15 –1 104 –1,898 –1,919 35,502 29,528	Total Prev.yr. 31.12.07 1 4,277 3,753 1,168	Prev.yr.1 4,284 4,720 1,303
					10	–	–	–	–	200	252
				6,197	6,254	27	34	–		–27 119,034 122,915
117 494 11,250 11,049 48,503 48,934 54,227 57,969	595	380	344	302 6,507	287 6,551	– 27	– 34	– –	–	1,280 –27 120,514 124,510	1,343
11,082 14,579 1,714	1,837	278	253	18	18	–		– -4,886 -4,756			8,206 11,931
301 1,206	702	2,346	1,892	602	257	455	293	–385	–385	4,833	3,060
						646
–	–		1,820	–	–	–	–	–	–	2,178	1,820
	3,871		6,357	1,489	1,528	–				5,626	6,593
				4,287	3,847	118
						775
	844 6,365	– 3,024 8,394	2,178 6,612	8,421 12,011 11,286		26,108 29,248 55,807 55,735 95,041 93,728 12,073 11,815 33,0432 36,732 68,4652 69,229 117,508 114,921 18,873 18,272				– –6,263 –6,007	604 –15,699 –16,078 173,976 175,052 144 –2,447 –1,967 28,196 28,096 758 –24,411 –24,067 214,253 215,845

Backup: Preliminary results 2007 Segment reporting Equity & liabilities
			Reinsurance			Primary Insurance			Asset					Total
	Life/Health		Property-Casualty		Life/Health		Property-Casualty		Management			Consolidation
€m									31.12.07 Prev. yr.1 31.12.07 Prev. yr.1 31.12.07 Prev. yr.1 31.12.07 Prev. yr.1 31.12.07 Prev. yr.1 31.12.07 Prev. yr1 31.12.07					Prev. yr.1
A. Subordinated liabilities	1,910	1,349	2,584	1,682	–	2	393	398	–	–	–10	–12	4,877	3,419
B. Gross technical provisions
I. Unearned premiums	186	195	4,080	4,362	104	92	1,613	1,468	–	–	–264	–247	5,719	5,870
II. Provision for future policy benefits		14,668 16,706	748		738 83,958 81,561		310	267	–				– –4,749 –4,612 94,935 94,660
III. Provision for outstanding claims	3,653		4,489 34,783 36,482		2,186	2,245	4,917	4,737	–	–	–975		–877 44,564 47,076
IV. Other technical provisions	850	1,114	274	232	9,554	9,799	122	113	–	–	–264		–329 10,536 10,929
			19,357 22,504 39,885 41,814 95,802 93,697				6,962	6,585	–				– –6,252 –6,065 155,754 158,535
C. Gross technical provisions for life insurcance policies where the investment risk is borne by the policyholders	–	–	–	–	2,308	1,930	–	–	–	–	–	–	2,308	1,930
D. Other accrued liabilities	302	272	477	559	767	664	1,287	1,366	44	37	–84	–77	2,793	2,821
E. Other segment liabilities	5,182	5,051	8,004		7,537 14,381 14,191		4,421	4,353	512				534 –9,437 –8,846 23,063 22,820
Total segment liabilities			26,751 29,176 50,950 51,592 113,258 110,484 13,063 12,702						556		– 571 15,783		–15,000 188,795 189,525
											Equity			25,458 26,320
											Total			214,253 215,845
1 Adjusted owing to IAS 8.

Backup: Preliminary results 2007
Segment reporting
Income statement
		Reinsurance				Primary insurance								Total
	Life and health		Prop.-casualty		Life and health		Prop.-casualty		Asset management		Consolidation
€m	2007	2006	2007 1	2006	2007 1	2006	2007 1	2006	2007 1	2006	2007 1	2006	2007 1	20061
Gross premiums written	7,299		7,665 14,224 14,551 11,647 11,606				5,639	5,147	–	–	268	391	774	1,010
from insurance transactions with other
segments	704	751	824	760	1	1	18	21	–		– –1,547 –1,533		–	–
from insurance transactions with external
third parties	6,595		6,914 13,400 13,791 11,646 11,605				5,621	5,126	–	–	–			– 37,262 37,436
1. Earned premiums
Gross	7,292		7,667 14,281 14,805 11,641 11,600				5,484	5,060	–					– –1,511 –1,519 37,187 37,613
Ceded	268	391	774	1,010	877	932	1,104	1,085	–			– –1,511 –1,519 1,512		1,899
Net	7,024		7,276 13,507 13,795 10,764 10,668				4,380	3,975	–	–	–			– 35,675 35,714
2. Investment result	1,532	1,633	2,795	2,769	4,832	4,400	733	685	119	55	–739		–570 9,272	8,972
Income from associates	3	6	15	33	243	17	–15	–16	18	4	–	–	264	44
3. Other income	383	297	703	557	1325	901	642	739	317	328		–994 –1,038 2,376		1,784
Total income (1–3) 4. Expenses for claims and benefits	8,939		9,206 17,005 17,121 16,921 15,969				5,755	5,399	436					383 –1,733 –1,608 47,323 46,470
Gross Ceded	5,611 178	5,932 190	9,618 431	553	9,526 13,969 13,593 566	592	3,263 624	2,864 582	– –	–	–956	–882	843	– –1,144 –1,100 31,317 30,815 1,035
Net	5,433	5,742	9,187		8,973 13,403 13,001		2,639	2,282	–	–	–188			–218 30,474 29,780
5. Operating expenses
Gross	2,019	2,314	4,108	4,107	1,774	1,704	1,828	1,686	–	–	–458		–478 9,271	9,333
Ceded	61	158	255	261	237	262	308	296	–	–	–468	–478	393	499
Net	1,958	2,156	3,853	3,846	1,537	1,442	1,520	1,390	–	–	10		– 8,878	8,834
6. Other expenses	454	386	897	816	1,402	1,041	921	947	340			303 –1,132 –1,118 2,882		2,375
Total expenses (4-6)	7,845		8,284 13,937 13,635 16,342 15,484				5,080	4,619	340					303 –1,310 –1,336 42,234 40,989
7. Result before amortisation and
impairment losses of goodwill	1,094	922	3,068	3,486	579	485	675	780	96	80	–423		–272 5,089	5,481
8. Amortisation and impairment losses of
goodwill	3	–	–	–	–	1	1	3	7	–	–	–	11	4
9. Operating result 10. Finance costs	1,091 115	922 96	3,068 192	3,486 161	579 0	484 1	674 23	777 49	89 3	80 4	–423 –	–1	–272 5,078 333	5,477 310
11. Taxes on income	251	265	287	1,191	221	164	25	2	26	23	–2	3	808	1,648
12.Consolidated result	725	561	2,589	2,134	358	319	626	726	60	53	–421		–274 3,937	3,519
attributable to MR equity holders
	725	561	2,589	2,134	319	284	579	668	59	51	–417		–273 3,854	3,425
attributable to minority interests	–	–	–	–	39	35	47	58	1	2	–4	–1	83	94

		Reinsurance				Primary Insurance			Asset		Total
	Life/Health		Property-Casualty		Life/Health		Property-Casualty		Management
€m1	2007	2006	2007	2006	2007	2006	2007	2006	2007	2006	2007	2006
Regular income	1,214	1,283	2,030	1,926	4,379	4,198	374	381	112	46	8,109	7,834
Income from write-ups	189	63	814	272	206	233	16	8	0	0	1,225	576
Gains on the disposal of
investments	603	357	2,586	1,560	2,237	1,674	243	255	2	3	5,671	3,849
Other income	0	0	0	0	52	119	1	2	13	2	66	123
Total	2,006	1,703	5,430	3,758	6,874	6,224	634	646	127	51	15,071	12,382
Write-downs of investments	232	88	1,193	394	723	925	81	32	8	2	2,237	1,441
Losses on the disposal of investments	352	131	1,419	550	997	558	94	51	6	0	2,868	1,290
Management expenses, interest charges and other expenses	53	36	221	162	385	393	31	81	4	7	694	679
Total	637	255	2,833	1,106	2,105	1,876	206	164	18	9	5,799	3,410

		Reinsurance				Primary Insurance			Total
	Life/Health		Property-casualty		Life/Health		Property-casualty
1 in €m	2007	2006	2007	2006	2007	2 2006	2007	2006	2007	20062
Gross
Claims and benefits paid	5,452	5,752	8,875	8,340	10,057	9,538	2,986	2,875	27,370	26,505
Change in technical provisions
– Provision for future policy benefits	408	211	23	36	1,771	1,442	38	35	2,240	1,724
– Provision for outstanding claims	–933	–720	223	719	–66	246	202	–81	–574	164
– Provision for premium refunds	–	–	–	1	2,047	2,169	21	23	2,068	2,193
Other underwriting result	1	–2	10	24	188	202	14	5	213	229
Gross expenses for claims and benefits	4,928	5,241	9,131	9,120	13,997	13,597	3,261	2,857	31,317	30,815
Ceded Share
Claims and benefits paid	335	120	1,008	554	69	61	267	322	1,679	1,057
Change in technical provisions
– Provision for future policy benefits	–12	3	–1	–	95	128	–	–	82	131
– Provision for outstanding claims	–128	83	–579	20	3	–7	–136	–153	–840	–57
– Provision for premium refunds	–	–	–	–	–	–	1	–	1	–
Other underwriting result	–17	–16	2	–21	–66	–59	2	–	–79	–96
Ceded share of expenses for	178	190	430	553	101	123	134	169	843	1,035

Backup: Preliminary results 2007 Explanation of consolidated income statement	Expenses for claims and benefits (net)
	Reinsurance	Primary Insurance

	Life/Health		Property-casualty		Life/Health		Property-casualty		Total
in €m 1	2007	2006	2007	2006	2007	2006 2	2007	2006	2007	20062
Net
Claims and benefits paid	5,117	5.632	7,867	7,786	9,988	9,477	2,719	2,553	25,691	25,448
Change in technical provisions
– Provision for future policy benefits	420	208	24	36	1,676	1,314	38	35	2,158	1,593
– Provision for outstanding claims	–805	–803	802	699	–69	253	338	72	266	221
– Provision for premium refunds	–	–	–	1	2,047	2,169	20	23	2,067	2,193
Other underwriting result	18	14	8	45	254	261	12	5	292	325
Net expenes for claims and benefits	4,750	5.051	8,701	8,567	13,896	13,474	3,127	2,688	30,474	29,780

1 After elimination of intra-Group transactions across segments. 2 Adjusted owing to IAS 8.

		Reinsurance				Primary insurance			Total
	Life and health		Property-casualty		Life and health		Prpoerty-casualty
€m1	2007	2006	2007	2006	2007	2006	2007	2006	2007	2006
Acquisition costs	1	35	–33	83	1,320	1,235	1,153	1,030	2,441	2,383
Administration expenses	250	261	835	813	424	442	668	639	2,177	2,155
Amortization of acquired insurance portfolios	5	1	-	-	22	15	-	-	27	16
Reinsurance commission and profit commission	1,556	1.791	3,045	2,958	16	19	9	11	4,626	4,779
Gross operating expenses	1,812	2,088	3,847	3,854	1,782	1,711	1,830	1,680	9,271	9,333
Ceded share of acquisition costs	9	–16	15	–12	–1	20	4	-	27	–8
Commission received on ceded business	52	174	240	273	21	8	53	52	366	507
Operating expenses – Ceded share	61	158	255	261	20	28	57	52	393	499
Net operating expenses	1,751	1,930	3,592	3,593	1,762	1,683	1,773	1,628	8,878	8,834

Backup
Target and assumption set 2008
Preliminary results 2007
Group financial statements
Segment reporting
Quarterly figures
Munich Re Group
Reinsurance – Life and health
Reinsurance – Property-casualty
Primary insurance – Life and health
Primary insurance – Property-casualty
Additional information
European Embedded Value 2007	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
	45

€m	Q1 20061	Q2 20061	Q3 20061	Q4 20061	Q1 20071	Q2 2007	Q3 2007	Q4 2007	UQ4 '07 / Q4 '06 in %
Gross premiums written	10,036	9,027	9,017	9,356	10,020	8,908	9,148	9,186	–1.8
Investment result	2,129	2,674	2,257	1,912	3,161	2,485	1,990	1,636	–14.4
Total income	11,438	11,970	11,406	11,656	12,367	11,953	11,311	11,692	0.3
Total expenses	9,960	10,128	10,099	10,802	11,054	10,418	10,179	10,583	–2.0
Operating result	1,478	1,842	1,307	850	1,313	1,535	1,132	1,098	29.2
Finance costs	86	78	74	72	70	79	89	95	31.9
Taxes on income	406	623	510	109	269	298	–173	414	279.8
Consolidated result	986	1,141	723	669	974	1,158	1,216	589	–12.0
Equity (balance-sheet date)	24,973	23,268	25,549	26,320	26,341	25,330	24,857	25,458	–3.3

Backup: Preliminary results 2007
Reinsurance segment – Life and health Quarterly figures
€m	Q1 2006	Q2 2006	Q3 2006	Q4 2006	Q1 2007	Q2 2007	Q3 2007	Q4 2007	UQ4 '07 / Q4 '06 in %
Gross premiums written	1,945	1,954	1,945	1,821	1,791	1,867	1,866	1,775	–2.5
Investment result	466	442	400	385	498	410	361	344	–12.5
Total income	2,352	2,342	2,301	2,197	2,202	2,307	2,237	2,193	–0.5
Total expenses	2,055	2,044	2,114	2,058	1,921	2,009	1,968	1,947	–5.8
Operating result	297	298	187	139	281	298	269	243	74.8
Finance costs	22	26	24	24	23	26	31	35	45.8
Taxes on income	93	128	61	–17	86	43	–77	199	–
Consolidated result	182	144	102	132	172	229	315	9	–93.2
										Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
										47

Q1 2006	Q2 2006	Q3 2006	Q4 2006	Q1 2007	Q2 2007	Q3 2007	Q4 2007	UQ4 '07 / Q4 '06 in %
4,045	3,389	3,559	3,558	4,029	3,306	3,610	3,279	–7.8
669	856	662	574	907	914	502	472	–17.8
4,286	4,399	4,148	4,274	4,503	4,477	3,930	4,095	–4.2
3,349	3,344	3,228	3,699	3,725	3,417	3,401	3,394	–8.2
937	1,055	920	575	778	1,060	529	701	21.9
48	33	39	41	41	45	51	55	34.1
230	251	378	332	111	120	–64	120	–63.9
659	771	503	202	626	895	542	526	160.4
								UQ4/Q4 in %- pts.
91.6	91.7	90.4	96.5	101.8	94.9	97.1	91.7	–4.8
		Reinsurance segment – Property-casualty

€m	Q1 20061	Q2 20061	Q3 20061	Q4 20061	Q1 20071	Q2 2007	Q3 2007	Q4 2007	UQ4 '07 / Q4 '06 in %
Gross premiums written	2,856	2,835	2,758	3,157	2,855	2,810	2,726	3,256	3.1
Investment result	924	1,335	1,180	961	1,668	1,256	1,100	808	–15.9
Total income	3,707	4,179	3,932	4,151	4,483	4,174	3,986	4,278	3.1
Total expenses	3,642	3,908	3,865	4,069	4,369	4,084	3,761	4,128	1.4
Operating result	65	271	67	81	114	90	225	150	85.2
Finance costs	1	–	–	–	–	1	–	–1	–
Taxes on income	55	136	47	–74	58	46	47	70	–
Consolidated result	9	135	20	155	56	43	178	81	–47.7

1 Adjusted due to IAS 8.

									UQ4 '07
€m	Q1 2006	Q2 2006	Q3 2006	Q4 2006	Q1 2007	Q2 2007	Q3 2007	Q4 2007	/ Q4 '06 in %
Gross premiums written	1,718	1,129	1,093	1,207	1,903	1,245	1,281	1,210	0.2
Investment result	200	185	85	215	295	117	76	245	14.0
Total income	1,314	1,368	1,272	1,445	1,478	1,356	1,364	1,557	7.8
Total expenses	1,140	1,085	1,146	1,248	1,276	1,152	1,276	1,376	10.3
Operating result	174	283	126	194	202	204	88	180	–7.2
Finance costs	14	19	11	5	6	6	6	5	0.0
Taxes on income	24	98	19	–139	2	81	–82	24	–
Consolidated result	136	166	96	328	194	117	164	151	–54.0
									UQ4/Q4 in %-pts.
1 Combined ratio (in %)	97.0	87.2	89.1	90.2	102.1	85.1	92.1	94.7	4.5

Backup
Target and assumption set 2008
Preliminary results 2007
Group financial statements
Segment reporting
Quarterly figures
Additional information
Investments
Unrealised gains and losses on securities afs
Major claims
Currency split and exchange rate developments
European Embedded Value 2007	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
	51

Investments	Backup: Preliminary results 2007 Well-balanced portfoliomix Investment structure by asset classes (market values)
	€m	%	Land and buildings	Loans Fixed-interest Shares, equity funds and securities participating interests		Miscellaneous1
31.12.20042	181	5.9	11.7	57.0	13.9	11.5
31.12.20053,4	180	4.0	14.3	56.0	14.0	11.7
31.12.2006	179	3.6	16.4	54.9	14.6	10.5
31.12.2007	176	2.8	19.4	54.2	13.85	9.8
Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 1 Deposits retained on assumed reinsurance, investments for unit-linked life, deposits with banks, investment funds (bond, property). 2 After reclassification of owner-occupied properties of Munich Reinsurance Company to other assets. 3 After reclassification of owner-occupied properties of Munich Reinsurance Group to other assets. 4 Decrease of €13.2bn in assets (market values) due to sale of Karlsruher in Q4 2005. 52 5 After taking equity derivatives into account: 10.8%.

</bbb<>

	Structured Product Portfolio (ABS/MBS/CDO )
€m		AAA	AA	A	BBB	<bbb< th="">	NR	USA	Europe	Total	NR	USA	Europe	Total
ABS	1 Consumer-related ABS	561	7	16	2	0	0	467	120	587
	2 Corporate-related ABS	236	0	181	4	0	3	259	166	425
	Subprime HEL	96	134	0	0	0	0	230	0	230
CDO/ CLN	CDO / CLN	150	57	70	24	25	112	98	341	438
MBS	Agency	1,840	99	0	0	0	0	1,939	0	1,939
	Non-agency Prime	568	28	33	5	0	0	405	230	635
	Non-agency Other (not Subprime)	485	14	10	2	0	0	379	132	511
	Commercial MBS	688	21	2	9	0	0	689	30	720
	Total	4,624	361	313	46	25	116	4,466	1,018	5,484
		84%	7%	6%	1%	0%	2%	81%	19%

¹ Consumer Loans, Auto, Credit Cards, Student Loans. ² Asset-Backed CPs, Business and Corporate Loans, Commerical Equipment .

Backup: Preliminary results 2007
Unrealised gains and losses on securities available for sale Shareholders' stake nearly €5bn
€m		Unrealised losses (gross)	Unrealised gains (gross)
31.12.2005	10,973	–426			11,399
31.12.2006	9,287	–1,004			10,291
31.12.2007	6,680	–1,479		8,159
					Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
Gross unrealised gains and losses	6,680
Policyholders' participation	–1,352
Deferred taxes	–323
Minority interests	–26
Consolidation	+1
Shareholders' stake	4,980
					55

Backup: European Embedded Value 2007 Reconciliation to IFRS equity IFRS uplift of €5.5bn
REINSURANCE SEGMENT	PRIMARY INSURANCE SEGMENT
31.12.2006	31.12.2006
of which goodwill in €m Value not recognised in IFRS equity	in €m
3,875 IFRS equity	1,165 3,743 IFRS equity
5,962 EEV 2,087	4,154 1,576 EEV
31.12.2007	31.12.2007
in €m	in €m
4,096 IFRS equity	IFRS equity 3,687 1,165
EEV 6,662 2,566	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 2,884 EEV 5,406
	59

Backup: European Embedded Value 2007
Experience variances and operating assumption changes Track record of prudent operating assumptions
			Traditional embedded value				Market-consistent embedded value
REINSURANCE SEGMENT
€m	2001	2002	2003	2004	2005	2006	2007	Sum 2001–2007
Experience variances	–78	98	3	134	127	–83	160	361
Operating assumption changes	49	23	66	–10	–61	94	–72	89
Total	–29	121	69	124	66	11	88	450
PRIMARY INSURANCE SEGMENT
€m	2001	2002	2003	2004	2005	2006	2007	Sum 2001–2007
Experience variances	–39	3	–3	10	62	202	–47	188
Operating assumption changes	3	–115	–5	–13	188	313	135	506
Total	–36	–112	–8	–3	250	515	88	694

Backup: European Embedded Value 2007 Sensitivities EEV as at 31 December 2007
€m	Reinsurance		Primary insurance
	EEV	Change	EEV	Change
Base case	6,662		5,406
Doubled frictional cost rate	6,099	–563	4,935	–471
No frictional costs	7,351	689	5,998	592
Mortality/morbidity (life business) –5%	7,500	838	5,468	62
Mortality (annuity business) –5%	6,635	–27	5,376	–30
No mortality improvements (life business)	5,179	–1,483	–	–
Lapse rates –10%	6,805	143	5,495	89
Maintenance expenses –10%	6,715	53	5,496	90
Interest rates –100bp	7,177	515	4,511	–895
Interest rates +100bp	6,219	–443	6,152	746
Equity/property values –10%	6,659	–3	5,214	–192
Minimum solvency capital	6,843	181	6,013	607

€m	Reinsurance		Primary insurance
	VANB	Change	VANB	Change
Base case	277		164
Doubled frictional cost rate	214	–63	145	–19
No frictional costs	355	78	190	26
Mortality/morbidity (life business) –5%	371	94	173	9
Mortality (annuity business) –5%	277	0	160	– 4
No mortality improvements (life business)	98	–179	–	–
Lapse rates –10%	296	19	186	22
Maintenance expenses –10%	284	7	180	16
Interest rates –100bp	292	15	150	–14
Interest rates +100bp	264	–13	172	8
Equity/property values –10%	277	0	162	–2

Backup: European Embedded Value 2007 Reinsurance – Life 11.8% operating EEV earnings
€m Expected return Experience variances Operating assumption changes Value added by new business Operating EEV earnings Tax variances/ assumption changes Economic variances Total EEV earnings	336 160 -72 277 701 148 10 859	11.8% of EEV 14.4% of EEV	ƒ New business margin (VANB/PVNBP) increased to 5.5% (4.3%) Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 ƒ Operating assumption changes affected by write-down of deferred tax asset for US life business ƒ Lower tax rates in Canada and Germany
			64

Backup: European Embedded Value 2007 Primary insurance – Total	Solid European Embedded Value 2007
€m European Embedded Value 31.12.2006	4,154	ƒ Strong RoEV of 29.0% (50.5%) ƒ Sale of ERGO International from life insurers to
EEV earnings Currency movements	1,206 1	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 ERGO holding reflected as acquisition
Value of acquired/ (divested) business Capital	219
movements European Embedded Value 31.12.2007	–174 5,406
		65

Backup: European Embedded Value 2007 Primary insurance – Total 11.5% operating EEV earnings
€m Expected return Experience variances Operating assumption changes Value added by new business Operating EEV earnings Tax variances/ assumption changes Economic variances Total EEV earnings	226 –47 135 164 478 338 390 1,206		11.5% of EEV 29.0% of EEV	ƒ New business margin (VANB/PVNBP) increased to 2.5% (1.8%) ƒ Lower tax rates in Germany and Italy ƒ Rising interest rates and good equity performance	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
					66

Backup: European Embedded Value 2007 Primary insurance – German life		Solid European Embedded Value 2007
€m European Embedded Value 31.12.2006 EEV earnings Currency movements Value of acquired/ (divested) business Capital movements European Embedded Value 31.12.2007	2,211 765 0 0 –94 2,882		ƒ High RoEV of 34.6%	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
				67

Backup: European Embedded Value 2007 Primary insurance – German life 11.9% operating EEV earnings
€m Expected return Experience variances Operating assumption changes Value added by new business Operating EEV earnings Tax variances/ assumption changes Economic variances Total EEV earnings	135 –45 68 105 263 270 232 765	11.9% of EEV 34.6% of EEV	ƒ New business margin (VANB/PVNBP) to 2.8% (2.0%) ƒ Experience Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 variances impacted by lower shareholders' share than modelled ƒ Lower tax rate ƒ Favourable capital markets
			68

Primary insurance – German medical Solid European Embedded Value 2007
€m European Embedded Value 1,344 31.12.2006 EEV earnings 310 Currency movements 0	ƒ Strong RoEV of 23.1% (25.6%)
Value of acquired/ 0 (divested) business Capital –81 movements
European Embedded Value 1,573 31.12.2007	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008

Backup: European Embedded Value 2007 Primary insurance – German medical 11.2% operating EEV earnings
€m Expected return Experience variances Operating assumption changes Value added by new business Operating EEV earnings Tax variances/ assumption changes Economic variances Total EEV earnings	52 2 66 30 150 45 115 310	11.2% of EEV 23.1% of EEV	ƒ New business margin (VANB/PVNBP) to 1.2% (0.9%) ƒ Operating Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008 assumption changes affected by lower maintenance costs ƒ Lower tax rate ƒ Favourable capital markets
			70

Backup: European Embedded Value 2007 Primary insurance – International life	Solid European Embedded Value 2007
€m European Embedded Value 31.12.2006 EEV earnings Currency movements Value of acquired/ (divested) business Capital movements European Embedded Value 31.12.2007	599 131 1 219 1 951	ƒ Strong RoEV of 21.9% (6.3%) ƒ Sale of ERGO International from life insurers to ERGO holding reflected as acquisition	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
			71

Backup: European Embedded Value 2007 Primary insurance – International life 10.9% operating EEV earnings
€m Expected return Experience variances Operating assumption changes Value added by new business Operating EEV earnings Tax variances/ assumption changes Economic variances Total EEV earnings	39 –4 1 29 65 23 43 131	21.9% of EEV	10.9% of EEV	ƒ New business margin (VANB/PVNBP) increased to 6.3% (5.5%) ƒ Lower tax rate in Italy ƒ Favourable interest rates in euro zone	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
					72

Appendix
Financial calendar
Contacts
Disclaimer
	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
	73

Appendix Financial calendar
12 March 2008 Annual Report 2007
17 April 2008 Annual General Meeting
18 April 2008 Dividend payment
8 May 2008 Interim report as at 31 March 2008 Analysts' conference, Munich	Munich Re Group – Annual financial statements as at 31.12.2007 – 25 February 2008
6 August 2008 Interim report as at 30 June 2008
7 October 2008 Investors' Day on life reinsurance, London
7 November 2008 Interim report as at 30 September 2008
	74

Appendix