Muenchener Rueckversicherungs-Gesellschaft AG — Earnings Release 2008

Feb 18, 2009

Munich Re Group Preliminary key figures 2008 and renewals

Telephone conference with analysts and investors

Jörg Schneider Torsten Jeworrek

4 February 2009

Agenda Preliminary key figures 2008 and renewals
Preliminary key figures 2008	2
New business in primary life insurance	4
Renewals in property-casualty reinsurance	6
Summary	13
Back-up	15
	Munich Re Group – Preliminary key figures 2008 and renewals – 4 February 2009
	2

Preliminary key figures 2008
Preliminary key figures 2008 Satisfactory result 2008 – Unchanged high dividend of €5.50
€bn	2008	20071	Q4 2008	Q4 20071
Gross premiums written	37.8	37.3	9.7	9.2
Thereof reinsurance2	21.8	21.5	5.6	5.0
Thereof primary insurance2	17.4	17.3	4.4	4.5
Combined ratio reinsurance (%)	99.5%	96.4%	97.7%	91.7%
Combined ratio primary insurance (%)	91.2%	93.4%	94.2%	94.7%
Consolidated result	1.5	3.9	0.1	0.6
Dividend per share (€)	5.50	5.50	n.a	n.a
Shareholders' equity (as per balance-sheet date)	21.3	25.5	n.a.	n.a.
Consolidated result impacted by a significant Combined ratio: Strong in primary insurance; lower investment result above average major losses in reinsurance
Further reduction of equity exposure in Q4 through sale and reduction of equities; stable market value of hedging positions	Capitalisation at solid level of €21.3bn; stable shareholder's equity in Q4
1 Adjusted pursuant to IAS 8.

² Segmental figures, before elimination of intra-Group transactions across segments.

5 Munich Re Group – Preliminary key figures 2008 and renewals – 4 February 2009

Agenda Preliminary key figures 2008 and renewals
Preliminary key figures 2008	2
New business in primary life insurance	4
Renewals in property-casualty reinsurance	6
Summary	13
Back-up	15	Munich Re Group – Preliminary key figures 2008 and renewals – 4 February 2009
		4

	New business in primary life insurance	New business (statutory premiums)	ERGO new business life insurance
Total business					Comments
€m	Total	Single premium	Regular premium	APE1	Germany	Decrease of single premium business since
2007	1,894	1,282	612	740		Q4/2008 owing to financial market crisis			Impact of amended German insurance contract
2008	1,794	1,186	608	727	International	law on new business sales Excellent growth in Poland and Baltic states
∆	–5.3%	–7.5%	–0.5%	–1.8%		Good unit-linked business in Austria
	Thereof Germany					Thereof international
€m	Total	Single premium	Regular premium	APE1	€m	Total	Single premium	Regular premium	APE1
2007	1,615	1,148	467	582	2007	279	135	144	157
2008	1,445	981	464	562	2008	349	205	144	164
∆	–10.5%	–14.5%	–0.6%	-3.4%	∆	25.1%	51.9%	± 0.0%	4.5%
			1 Annual premium equivalent (10% of single premium plus regular premiums).

Agenda Preliminary key figures 2008 and renewals
Preliminary key figures 2008	2
New business in primary life insurance	4
Renewals in property-casualty reinsurance	6
Summary	13
Back-up	15	Munich Re Group – Preliminary key figures 2008 and renewals – 4 February 2009
		6

Renewals in property-casualty reinsurance Market environment Market environment clearly changed
Market environment Financial crisis and AIG turmoil changed the renewal expectation significantly Munich Re started swing to hard market in Monte Carlo However, heterogeneous picture regarding regions and lines of business Negotiations significantly driven by recent loss experiences
Supply Major competitors generally showed a stricter underwriting strategy … … however, competitors often took a more heterogeneous underwriting approach Aggressive attitude in specific segments (e.g. US casualty, Central European motor, China) No major capacity reductions visible yet, but also no new market entrances Retrocession capacity only at prohibitive prices	Munich Re Group – Preliminary key figures 2008 and renewals – 4 February 2009 Demand Trend of decreasing rates has stopped In general, cedants are clearly more sensitive to security Flight to quality; cedants increasingly accept differential terms However, some local markets demonstrate lack of perception for current developments and implications on underwriting policies and risk management
	Turnaround achieved in nearly all segments 7

Renewals in property-casualty reinsurance
Concrete initiatives Improved portfolio quality due to consistent cycle management
Decrease		Examples
Strict reduction of unprofitable business	Germany motor	–€67m	Proportional –30%, XL –50%
	Germany others	–€72m	Mainly other casualty –€23m Property proportional –€36m
	US casualty	–€74m	Split equally in motor and workers' comp
	China	–€207m	Proportional business
	Commercial D&O	–€30m	Substantial reduction of total D&O business
Selective growth		Examples
Take advantage of significant price increases	US property cat.	+€75m	Double-digit price increases
	Offshore energy	+€140m	Double- to triple-digit price increases
	UK motor	+€39m	Original market is hardening
	US agro	+€220m	Munich Re Group – Preliminary key figures 2008 and renewals – 4 February 2009 Further continuation of successful business model 11

Renewals in property-casualty reinsurance Outlook Clear signs of a continued favourable reinsurance market
Upcoming renewals 2009:
April: €1.2bn up for renewal, driven by Japan/Korea
July: €1.0bn up for renewal, driven by US, Australia, Latin America
Strong expectation of further hardening in reinsurance markets (e.g. US hurricane)
With balance sheets of insurers and reinsurers remaining under pressure, the supply demand equation for reinsurance should lead to more attractive fundamentals
We assume an increasing demand for security (flight to quality) and no new capacity to enter the market
Reinsurance remains one of the few functioning capital markets for insurers
Financial crisis will lead to specific opportunities for large deals in non-life and life reinsurance
	Munich Re Group – Preliminary key figures 2008 and renewals – 4 February 2009
Munich Re prepared to benefit from further hardening of reinsurance markets	12

Agenda Preliminary key figures 2008 and renewals
Preliminary key figures 2008	2
New business in primary life insurance	4
Renewals in property-casualty reinsurance	6
Summary	13
Back-up	Munich Re Group – Preliminary key figures 2008 and renewals – 4 February 2009 15
	13

Appendix Shareholder information Financial calendar
3 March 2009	Balance sheet press conference for 2008 financial statements (preliminary figures) Analysts' conference, Munich
13 March 2009	Annual Report 2008
22 April 2009	Annual General Meeting
23 April 2009	Dividend payment
6 May 2009	Interim report as at 31 March 2009
4 August 2009	Interim report as at 30 June 2009; Half-year press conference
5 November 2009	Interim report as at 30 September 2009
		Munich Re Group – Preliminary key figures 2008 and renewals – 4 February 2009 21