Muenchener Rueckversicherungs-Gesellschaft AG — Earnings Release 2020

Nov 5, 2020

5 November 2020

Quarterly Statement: Munich Re with solid profit for the quarter, considering high losses

• Munich Re generated a profit of around €1bn in the first three quarters of 2020 – despite COVID-19-related losses of €2.3bn.
• In Q3, profits amounted to €199m (COVID-19-related losses in Q3: approx. €800m)
• Substantial increase in premium income: growth continues
• ERGO posts good results again

"In reinsurance, the third quarter is often characterised by aboveaverage losses – and that was again the case this year. On top of manmade major losses and natural catastrophes in the USA, ongoing high COVID-19 claims affected the result. A gratifying aspect is that ERGO once again delivered a strong quarter. Given Munich Re's dynamic growth and the recent considerable price increases for reinsurance cover, we can look to the future with confidence."

Christoph Jurecka, CFO

Summary of Q3 figures

Munich Re generated a profit of €199m (865m) in Q3 2020, with €999m (2,490m) in Q1–3. The operating result fell to €353m, compared with €844m for the same quarter last year. In addition, the other non-operating result amounted to –€31m (–10m). The currency result totalled –€100m (228m), and the effective tax rate was –19.4% (14.2%), the pre-tax loss in the reinsurance field of business led to tax income. Compared with Q3 2019, gross premiums written increased by 3.0% to €14,150m (13,743m), and by 6.0% to €41,261m (38,917m) in Q1– 3.

Equity was only slightly lower at the reporting date (€29,641m) than at the start of the year (€30,576m). Thanks in part to the green bond with a volume of €1.25bn issued in September, the solvency ratio improved to 216% in Q3 (30 June 2020: 211%).

In Q3 2020, annualised return on equity (RoE) amounted to 3.6%.

Reinsurance: Result of €63m

The reinsurance field of business contributed €63m (746m) to the consolidated result in Q3 and €619m (2,151m) in Q1–3. The operating result amounted to €55m (690m), while gross premiums written rose to just under €10bn (€9,926m; Q3 2019: €9,582m).

Life and health reinsurance business generated a profit of €86m (282m) in Q3. Premium income increased to €3,127m (2,989m). The quarterly result also reflects losses arising from COVID-19 related deaths, especially in the USA, totalling around €100m. The technical result, including business with non-significant risk transfer, was €56m (226m).

Property-casualty reinsurance contributed –€23m (464m) to the result in Q3. Premium volume climbed to €6,798m (6,593m). The combined ratio was 112.2% (103.9%) of net earned premiums.

Major losses of over €10m each totalled €1,518m (981m). These figures include gains and losses from the settlement of major losses from previous years. Major-loss expenditure corresponds to 26.7% (18.4%) of net earned premiums, and was thus more than double the long-term average (12%). This was primarily attributable to man-made major losses, which came to over €1bn (€1,045m; Q3 2019: €404m). Of this, around €700m related to losses connected to the COVID-19 pandemic. In this context, the third quarter again saw losses incurred in connection with the cancellation or postponement of major events, as well as losses in other lines of property-casualty reinsurance, such as business interruption. Added to this, Munich Re sustained non-COVID-19-related man-made losses, for example the Beirut harbour explosion. Major-loss expenditure from natural catastrophes amounted to €474m (577m), especially as a consequence of windstorm and wildfire losses in the USA.

In Q3, reserves for basic claims from prior years totalling around €226m were released; this corresponds to 4.0% of net earned premiums. Munich Re continually seeks to set the amount of provisions for newly emerging claims at the very top end of the estimation range, so that profits from the release of a portion of these reserves are possible at a later stage.

ERGO: Result of €136m

Munich Re generated a profit of €136m (119m) in its ERGO field of business in Q3 and €381m (339m) in Q1–3.

The good Q3 result is attributable in particular to the segments International and Propertycasualty Germany. ERGO International reported a result of €57m (76m) on account of very strong operative performance. The ERGO Property-casualty Germany segment generated a profit of €48m (36m). The small additional losses in business closure and event insurance were more than compensated for by lower losses from natural catastrophes. ERGO Life and Health

Germany reported a result of €31m (8m), still influenced by the impact of COVID-19 on the capital market and in travel insurance. ERGO Group's operating result amounted to €297m (154m).

The combined ratios remain at a very good level. In the Property-casualty Germany segment, the ratio improved to 90.9% (92.1%) in Q3, and amounted to 92.2% (92.0%) in Q1–3. In the ERGO International segment, the ratio increased slightly to 92.5% (91.8%) in Q3 and dropped to 92.6% (94.1%) in Q1–3, benefiting from a lower claims frequency, especially in the context of the COVID-19 pandemic.

Total premium income across all segments amounted to €4,418m (4,344m) in Q3; gross premiums written totalled €4,224m (4,161m), the increase being essentially due to higher premium income in the Property-casualty Germany segment.

Investments: Investment result of €1,691m

The Group's investment result (excluding insurance-related investments) decreased to €1,691m (2,150m) in Q3. Regular income from investments fell to €1,536m (1,674m), largely due to lower interest income. The balance from write-ups and write-downs was –€265 (–104m), while net gains on disposal excluding derivatives amounted to €644m (633m). The drop in net balance of derivatives to –€65m (121m) results in particular from a higher yield from ERGO's interestrate hedging programme in the previous year.

Overall, the Q3 investment result represents a return of 2.7% on the average market value of the portfolio. The running yield was 2.4% and the yield on reinvestment was 1.3%. The equitybacking ratio was 4.8% as at 30 September 2020 (31 December 2019: 6.4%).

Munich Re's investment portfolio (excluding insurance-related investments) increased compared with the 2019 year-end figure, with the carrying amount rising slightly to €232,252m (228,764m); the market value amounted to €251,928m (247,310m).

The Group's asset manager is MEAG, whose assets under management as at 30 September 2020 included not only Group investments but also a volume of €67.4bn (38.2bn) for third parties. The significant year-on-year increase is largely due to a new mandate from an institutional client.

Outlook 2020

Given the ongoing high level of uncertainty regarding the further economic and financial consequences of COVID-19, Munich Re will again not issue profit guidance for 2020 with its Q3 statement. As with its annual profit target, Munich Re remains committed to the retractions of its sub-targets for annual profit in the reinsurance field of business, its forecast for the

combined ratio in property-casualty reinsurance, and for the technical result including business with non-significant risk transfer in life and health reinsurance.

All other sub-targets specified in the half-year financial report (2/2020) are unchanged, even if the environment remains extremely challenging and uncertain in view of the volatile capital markets and unclear impact of a prospective second wave of COVID-19. As always, the projections are subject to major losses being within normal bounds, and to the income statement not being impacted by severe fluctuations in the currency or capital markets, significant changes in the tax environment, or other one-off effects.

Münchener Rückversicherungs-Gesellschaft

Aktiengesellschaft in München Group Media Relations Koeniginstrasse 107, 80802 Munich, Germany

www.munichre.com LinkedIn: https://de.linkedin.com/company/munich-re Twitter: @MunichRe

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Florian Amberg Tel.: +49 89 3891 2299 Mobile: +49 170 712 97 84 flamberg@munichre.com

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Munich Re

Munich Re is one of the world's leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the asset management company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through to the 2019 Pacific typhoon season. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies, cyberattacks, or pandemics. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world's most sought-after risk partners for businesses, institutions, and private individuals.

Disclaimer

This media release 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 make them conform to future events or developments.

Key figures

Munich Re at a glance

		Q1–3 2020	Q1–3 2019	Change	Q3 2020	Q3 2019	Change
				%			%
Consolidated result	€m	999	2,490	-59.9	199	865	-77.0
Thereof attributable to non-controlling interests	€m	-4	-18	77.2	-3	-19	86.2
Earnings per share	€	7.15	17.40	-58.9	1.44	6.17	-76.7
Return on equity (RoE)1	%	5.9	14.5		3.6	15.3
Return on investment (Rol)	%	2.8	3.2		2.7	3.4

1 The annualised RoE is calculated on the basis of the consolidated result, including the result attributable to non-controlling interests. We use the figures as at 31 December 2019 and 30 September 2020, adjusted for unrealised gains and losses and for currency translation, to calculate the average equity for the first nine months of 2020.

		30.9.2020	31.12.2019	Change
				%
Share price	€	216.60	263.00	-17.6
Munich Reinsurance Company's market capitalisation	€bn	30.3	38.0	-20.1
Carrying amount per share	€	211.07	215.32	-2.0
Investments	€m	232,252	228,764	1.5
Insurance-related investments	€m	10,417	9,163	13.7
Equity	€m	29,641	30,576	-3.1
Off-balance-sheet unrealised gains and losses1	€m	24,510	19,913	23.1
Net technical provisions	€m	220,029	217,941	1.0
Balance sheet total	€m	295,973	287,553	2.9
Number of staff		39,731	39,662	0.2

1 Including those apportionable to minority interests and policyholders.

Reinsurance		Q1–3 2020	Q1–3 2019	Change %	Q3 2020	Q3 2019	Change %
Gross premiums written	€m	28,017	25,544	9.7	9,926	9,582	3.6
Combined ratio property-casualty	%	106.1	96.2		112.2	103.9
Investment result	€m	2,473	2,438	1.4	885	993	-10.9
Consolidated result	€m	619	2,151	-71.2	63	746	-91.5
Thereof: Reinsurance – Life and health	€m	153	617	-75.2	86	282	-69.4
Thereof: Reinsurance – Property-casualty	€m	466	1,535	-69.6	-23	464	–

ERGO		Q1–3 2020	Q1–3 2019	Change %	Q3 2020	Q3 2019	Change %
Gross premiums written	€m	13,245	13,373	-1.0	4,224	4,161	1.5
Combined ratio Property-casualty Germany	%	92.2	92.0		90.9	92.1
Combined ratio International	%	92.6	94.1		92.5	91.8
Investment result	€m	2,835	3,388	-16.3	807	1,156	-30.3
Consolidated result	€m	381	339	12.3	136	119	14.2
Thereof: Life and Health Germany	€m	99	143	-30.3	31	8	307.3
Thereof: Property-casualty Germany	€m	120	105	14.3	48	36	35.6
Thereof: International	€m	162	92	76.0	57	76	-25.0

Outlook Munich Re (Group) 2020

		As at	From	From	From Annual
		30.09.2020	Q2 2020	Q1 2020	Report 2019
Gross premiums written	€bn	54	54	52	52
Technical result – Life and health reinsurance1	€m	withdrawn	withdrawn	550	550
Combined ratio – Property-casualty reinsurance	%	withdrawn	withdrawn	withdrawn	97
Combined ratio – ERGO Property-casualty Germany	%	92	92	92	92
Combined ratio – ERGO Property-casualty International	%	94	94	94	94
Return on investment2	%	3	3	3	3
Consolidated result	€bn	withdrawn	withdrawn	withdrawn	2.8
Economic Earnings	€bn	withdrawn	withdrawn	withdrawn	over 2.8

1 Including the result from business with non-significant risk transfer.

2 Excluding insurance-related investments.

Investment portfolio

				Unrealised
€m		Carrying amounts		gains/losses1	Fair values
	30.9.2020	31.12.2019	30.9.2020	31.12.2019	30.9.2020	31.12.2019
Land and buildings,
including buildings on third-party land	6,668	5,989	5,668	5,600	12,336	11,589
Investments in affiliated companies,
associates and joint ventures	3,218	2,847	1,037	968	4,148	3,646
Loans	51,809	52,507	13,079	12,147	64,887	64,654
Other securities available for sale	154,181	151,558	16,233	14,370	154,181	151,558
Thereof: Fixed-interest	138,113	132,120	13,867	10,738	138,113	132,120
Thereof: Non-fixed-interest	16,068	19,438	2,366	3,632	16,068	19,438
Other securities at fair value through profit or loss	3,174	2,781			3,174	2,781
Thereof: Derivatives	2,668	2,099			2,668	2,099
Deposits retained on assumed reinsurance	7,992	7,938			7,992	7,938
Other investments	5,210	5,144			5,210	5,144
Total	232,252	228,764	36,017	33,085	251,928	247,310

1 Including on- and off-balance-sheet unrealised gains and losses.

Investment result

	Q1–3 2020	RoI1	Q1–3 2019	RoI1	Q3 2020	Q3 2019
	€m	%	€m	%	€m	€m
Regular income	4,801	2.6	5,133	2.8	1,536	1,674
Write-ups/write-downs of non-derivative investments	-1,832	-1.0	-285	-0.2	-265	-104
Gains/losses on the disposal of non-derivative investments	2,210	1.2	1,671	0.9	644	633
Net balance of derivatives	629	0.3	-208	-0.1	-65	121
Other income/expenses	-500	-0.3	-485	-0.3	-159	-174
Total	5,308	2.8	5,826	3.2	1,691	2,150

1 Annual % return on the mean value of the investment portfolio measured at market value as at the quarterly reporting dates.

Consolidated balance sheet

Assets
					30.9.2020	31.12.2019		Change
A.	Intangible assets		€m	€m	€m	€m	€m	%
	I.	Goodwill		2,857		2,941	-84	-2.9
	II.	Other intangible assets		1,206		1,240	-34	-2.8
					4,062	4,180	-118	-2.8
B.	Investments
	I.	Land and buildings, including buildings
		on third-party land		6,668		5,989	679	11.3
	II.	Investments in affiliated companies,
		associates and
		joint ventures		3,218		2,847	371	13.0
		Thereof:
		Associates and joint
		ventures accounted for
		using the equity method		2,949		2,625	325	12.4
	III.	Loans		51,809		52,507	-698	-1.3
	IV.	Other securities
		1. Available for sale	154,181			151,558	2,623	1.7
		2. At fair value through profit or loss	3,174			2,781	393	14.1
				157,355		154,338	3,017	2.0
	V.	Deposits retained on assumed reinsurance		7,992		7,938	53	0.7
	VI.	Other investments		5,210		5,144	65	1.3
					232,252	228,764	3,487	1.5
C.		Insurance-related investments			10,417	9,163	1,255	13.7
D.		Ceded share of technical provisions			5,319	4,937	383	7.8
E.	Receivables
	I.	Current tax receivables		871		699	172	24.6
	II.	Other receivables		24,726		21,539	3,186	14.8
					25,597	22,238	3,358	15.1
F.		Cash at banks, cheques and cash in hand			5,567	4,994	573	11.5
G.		Deferred acquisition costs
	Gross			9,564		9,664	-101	-1.0
	Ceded share			-459		-393	-66	-16.9
	Net				9,104	9,272	-167	-1.8
H.	Deferred tax assets				308	316	-8	-2.6
I.	Other assets				3,194	3,289	-95	-2.9
J.	Assets held for sale				153	400	-248	-61.9
	Total assets				295,973	287,553	8,420	2.9

Equity and liabilities

				30.9.2020	31.12.2019		Change
			€m	€m	€m	€m	%
A.	Equity
	I.	Issued capital and capital reserve	7,432		7,421	12	0.2
	II.	Revenue reserves	13,450		12,804	646	5.0
	III.	Other reserves	7,656		7,510	146	1.9
	IV.	Consolidated result attributable
		to Munich Reinsurance Company equity holders	1,004		2,724	-1,721	-63.2
	V.	Non-controlling interests	98		117	-18	-15.7
				29,641	30,576	-935	-3.1
B.		Subordinated liabilities		4,992	3,839	1,153	30.0
C.		Gross underwriting provisions
	I.	Unearned premiums	11,363		10,518	845	8.0
	II.	Provision for future policy benefits	113,221		112,302	919	0.8
	III.	Provision for outstanding claims	72,039		70,875	1,164	1.6
	IV.	Other underwriting provisions	21,197		21,011	186	0.9
				217,820	214,706	3,114	1.5
D.		Gross technical provisions
		for unit-linked life insurance		7,528	8,172	-644	-7.9
E.	Other provisions			5,600	5,291	309	5.8
F.	Liabilities
	I.	Notes and debentures	284		297	-13	-4.3
	II.	Deposits retained on ceded business	1,231		1,028	203	19.7
	III.	Current tax liabilities	1,911		1,913	-2	-0.1
	IV.	Other liabilities	24,568		19,643	4,924	25.1
				27,995	22,882	5,112	22.3
G.		Deferred tax liabilities		2,372	1,908	464	24.3
H.	Liabilities related to
	assets held for sale			26	179	-153	-85.3
	Total equity and liabilities			295,973	287,553	8,420	2.9

Consolidated income statement

€m €m €m €m €m % Gross premiums written 41,261 38,917 2,344 6.0 1. Earned premiums Gross 39,907 37,685 2,222 5.9 Ceded -1,919 -1,920 1 0.0 Net 37,988 35,765 2,222 6.2 2. Income from technical interest 3,455 5,252 -1,797 -34.2 3. Expenses for claims and benefits Gross -32,656 -30,148 -2,509 -8.3 Ceded 1,203 925 278 30.1 Net -31,453 -29,223 -2,230 -7.6 4. Operating expenses Gross -9,813 -9,766 -47 -0.5 Ceded 430 403 27 6.6 Net -9,383 -9,363 -20 -0.2 5. Technical result (1–4) 606 2,431 -1,825 -75.1 6. Investment result 5,308 5,826 -517 -8.9 Thereof: Income from associates and joint ventures accounted for using the equity method 60 114 -54 -48 7. Insurance-related investment result -374 888 -1,262 – 8. Other operating income 790 647 143 22.1 9. Other operating expenses -1,370 -1,506 136 9.0 10. Deduction of income from technical interest -3,455 -5,252 1,797 34.2 899 603 297 49.3 11. Non-technical result (6–10) 12. Operating result (5+11) 1,505 3,034 -1,528 -50.4 13. Other non-operating result -48 -82 34 41.2 14. Currency result 67 313 -247 -78.7 15. Net finance costs -164 -165 1 0.8 16. Taxes on income -360 -609 249 40.9 17. Consolidated result (12–16) 999 2,490 -1,491 -59.9 Thereof: Attributable to Munich Reinsurance Company equity holders 1,004 2,508 -1,505 -60.0 Attributable to non-controlling interests -4 -18 14 77.2 € € € % Earnings per share 7.15 17.40 -10.25 -58.9			Q1–3 2020	Q1–3 2019	Change

Consolidated income statement

1.	Gross premiums written Earned premiums Gross Ceded Net Income from technical interest	€m 14,150 13,480 -653	€m	Q3 2020 €m	Q3 2019 €m 13,743	€m 407	Change % 3.0
					12,964	515	4.0
					-677	24	3.5
			12,827		12,287	539	4.4
2.			1,470		1,753	-284	-16.2
3.	Expenses for claims and benefits
	Gross	-11,455			-10,711	-744	-6.9
	Ceded	383			391	-7	-1.9
	Net		-11,072		-10,321	-752	-7.3
4.	Operating expenses
	Gross	-3,285			-3,307	22	0.7
	Ceded	149			126	23	18.2
	Net		-3,137		-3,182	45	1.4
5.	Technical result (1–4)			87	538	-451	-83.8
6.	Investment result Thereof:		1,691		2,150	-458	-21.3
	Income from associates and
	joint ventures accounted
	for using the equity method		31		35	-4	-11.4
7.	Insurance-related investment result		175		208	-33	-15.7
8.	Other operating income		314		231	82	35.6
9.	Other operating expenses		-445		-530	85	16.0
10.	Deduction of income from technical interest		-1,470		-1,753	284	16.2
11.	Non-technical result (6–10)			265	306	-40	-13.1
12.	Operating result (5+11)			353	844	-491	-58.2
13.	Other non-operating result			-31	-10	-21	-222.0
14.	Currency result			-100	228	-328	–
15.	Net finance costs			-54	-55	1	1.0
16.	Taxes on income			32	-143	175	–
17.	Consolidated result (12–16)			199	865	-665	-77.0
	Thereof:
	Attributable to Munich Reinsurance Company
	equity holders			202	884	-682	-77.2
	Attributable to non-controlling interests			-3	-19	16	86.2
				€	€	€	%
	Earnings per share			1.44	6.17	-4.73	-76.7

Segment balance sheet

Segment assets

					Reinsurance						ERGO		Total
						Life and Health Property-casualty
		Life and health Property-casualty			Germany		Germany	International
€m			30.9.2020 31.12.2019		30.9.2020 31.12.2019		30.9.2020 31.12.2019		30.9.2020 31.12.2019		30.9.2020 31.12.2019		30.9.2020 31.12.2019
A.	Intangible assets	288	319	2,196	2,316	174	199	1,227	1,170	176	175	4,062	4,180
B.	Investments
	I. Land and buildings, including buildings on third-party land	181	190	3,044	2,369	3,089	3,101	227	225	127	105	6,668	5,989
	II. Investments in affiliated companies, associates and joint ventures Thereof:	55	48	1,820	1,827	388	378	103	113	852	481	3,218	2,847
	Associates and joint ventures accounted
	for using the equity method	26	27	1,719	1,761	328	322	41	43	835	471	2,949	2,625
	III. Loans	496	471	594	536	48,986	49,713	1,354	1,433	378	354	51,809	52,507
	IV. Other securities
	1. Available for sale	22,986	22,661	49,983	50,533	58,590	56,676	5,280	5,334	17,341	16,353	154,181	151,558
	2. fair value through profit or loss	98	83	1,200	897	1,460	1,336	36	23	380	441	3,174	2,781
		23,085	22,744	51,183	51,431	60,050	58,013	5,315	5,357	17,721	16,794	157,355	154,338
	V. Deposits retained on assumed reinsurance	4,935	4,791	3,019	3,082	23	43	15	22	0	0	7,992	7,938
	VI. Other investments	492	722	2,961	2,858	1,334	1,329	270	74	153	161	5,210	5,144
		29,243	28,967	62,622	62,103	113,871	112,577	7,285	7,222	19,231	17,895	232,252	228,764
C.	Insurance-related investments	2,742	1,070	498	290	4,929	5,216	0	0	2,249	2,587	10,417	9,163
D.	Ceded share of technical provisions	1,965	1,529	2,667	2,732	10	14	115	52	562	610	5,319	4,937
E.	Assets held for sale	1	10	17	157	0	0	0	0	134	234	153	400
F.	Other segment assets	17,075	14,826	14,956	13,852	7,145	7,034	1,829	1,637	2,765	2,760	43,770	40,109
	Total segment assets	51,315	46,721	82,956	81,449	126,128	125,039	10,456	10,082	25,117	24,262	295,973	287,553

Segment equity and liabilities

					Reinsurance						ERGO		Total
							Life and Health		Property-casualty
		Life and health		Property-casualty		Germany		Germany		International
€m			30.9.2020 31.12.2019		30.9.2020 31.12.2019		30.9.2020 31.12.2019		30.9.2020 31.12.2019		30.9.2020 31.12.2019		30.9.2020 31.12.2019
A.	Subordinated liabilities	1,189	956	3,790	2,871	0	0	0	0	13	13	4,992	3,839
B.	Gross technical provisions
	I. Unearned premiums	383	337	8,182	7,583	252	282	751	507	1,794	1,809	11,363	10,518
	II. Provision for future policy benefits	12,454	12,607	0	26	90,700	89,698	395	409	9,672	9,562	113,221	112,302
	III. Provision for outstanding claims	9,858	9,563	51,308	50,696	2,906	2,970	4,966	4,779	3,001	2,868	72,039	70,875
	IV. Other underwriting provisions	256	340	206	274	19,815	19,574	102	99	817	724	21,197	21,011
		22,952	22,848	59,697	58,579	113,673	112,525	6,214	5,793	15,284	14,962	217,820	214,706
C.	Gross technical provisions
	for unit-linked life insurance contracts	0	0	0	0	5,272	5,572	0	0	2,256	2,600	7,528	8,172
D.	Other provisions	202	233	725	805	2,155	1,992	1,221	1,061	1,296	1,200	5,600	5,291
E.	Liabilities related to
	assets held for sale	0	0	0	0	0	0	0	0	26	179	26	179
													24,790
													256,978
													30,576
													287,553
F.	Other segment liabilities Total segment liabilities	14,381 38,724	10,522 34,559	9,760 73,972	8,049 70,303	4,285 125,385	4,282 124,370	449 7,884	631 7,486	1,492 20,368 Total equity and liabilities	1,306 20,260 Equity	30,367 266,332 29,641 295,973

Segment income statement

					Reinsurance						ERGO		Total
							Life and Health		Property-casualty
			Life and health		Property-casualty		Germany		Germany		International
€m		Q1–3 2020	Q1–3 2019	Q1–3 2020	Q1–3 2019	Q1–3 2020	Q1–3 2019	Q1–3 2020	Q1–3 2019	Q1–3 2020	Q1–3 2019	Q1–3 2020	Q1–3 2019
Gross premiums written		9,538	8,625	18,479	16,920	6,718	6,912	2,943	2,804	3,584	3,657	41,261	38,917
1.	Net earned premiums	8,575	7,762	16,668	15,219	6,743	6,860	2,635	2,498	3,367	3,426	37,988	35,765
2.	Income from technical interest	501	497	837	888	2,010	3,347	51	57	55	464	3,455	5,252
3.	Net expenses for claims and benefits	-7,491	-6,266	-12,634	-9,767	-7,379	-8,949	-1,642	-1,528	-2,306	-2,713	-31,453	-29,223
4.	Net operating expenses	-1,554	-1,671	-5,053	-4,888	-1,043	-1,023	-806	-796	-927	-986	-9,383	-9,363
5.	Technical result (1–4)	31	322	-182	1,453	331	234	237	231	189	191	606	2,431
6.	Investment result	639	866	1,834	1,572	2,454	2,985	122	105	260	298	5,308	5,826
7.	Insurance-related investment result	34	24	-43	25	-276	578	0	0	-89	261	-374	888
8.	Other operating result	35	-24	-192	-369	-223	-244	-105	-129	-96	-93	-580	-859
9.	Deduction of income from technical interest	-501	-497	-837	-888	-2,010	-3,347	-51	-57	-55	-464	-3,455	-5,252
10.	Non-technical result (6–9)	207	369	762	341	-56	-28	-34	-80	20	1	899	603
11.	Operating result (5+10)	238	691	580	1,794	275	206	203	151	209	192	1,505	3,034
12.	Other non-operating result	1	-10	-10	-44	-32	-11	-12	-11	5	-7	-48	-82
13.	Currency result	-5	83	170	251	-91	54	-7	-18	0	-57	67	313
14.	Net finance costs	-29	-29	-93	-95	-16	-17	-5	-4	-20	-21	-164	-165
15	Taxes on income	-51	-119	-181	-372	-36	-90	-60	-14	-32	-15	-360	-609
16.	Consolidated result (11–15)	153	617	466	1,535	99	143	120	105	162	92	999	2,490

Segment income statement

					Reinsurance						ERGO		Total
							Life and Health		Property-casualty
			Life and health		Property-casualty		Germany		Germany		International
€m		Q3 2020	Q3 2019	Q3 2020	Q3 2019	Q3 2020	Q3 2019	Q3 2020	Q3 2019	Q3 2020	Q3 2019	Q3 2020	Q3 2019
Gross premiums written		3,127	2,989	6,798	6,593	2,254	2,254	808	769	1,162	1,137	14,150	13,743
1.	Net earned premiums	2,844	2,694	5,680	5,342	2,254	2,265	917	856	1,133	1,131	12,827	12,287
2.	Income from technical interest	169	176	286	296	904	1,146	17	19	94	116	1,470	1,753
3.	Net expenses for claims and benefits	-2,504	-2,067	-4,666	-3,902	-2,482	-2,998	-576	-530	-844	-823	-11,072	-10,321
4.	Net operating expenses	-499	-610	-1,698	-1,650	-369	-332	-266	-263	-305	-327	-3,137	-3,182
5.	Technical result (1–4)	10	194	-399	87	306	81	92	81	78	96	87	538
6.	Investment result	239	279	646	715	697	985	29	34	81	138	1,691	2,150
7.	Insurance-related investment result	24	13	-10	29	116	121	0	0	46	45	175	208
8.	Other operating result	17	-12	-16	-141	-75	-87	-26	-35	-31	-24	-131	-298
9.	Deduction of income from technical interest	-169	-176	-286	-296	-904	-1,146	-17	-19	-94	-116	-1,470	-1,753
	10. Non-technical result (6–9)	110	103	334	306	-166	-128	-14	-20	1	44	265	306
	11. Operating result (5+10)	120	297	-65	393	140	-47	78	62	79	139	353	844
	12. Other non-operating result	1	1	-2	-1	-29	-4	-7	-5	5	-1	-31	-10
	13. Currency result	-19	41	-20	137	-65	94	4	-6	1	-38	-100	228
	14. Net finance costs	-10	-10	-31	-31	-6	-6	-2	-1	-7	-7	-54	-55
15	Taxes on income	-6	-48	96	-34	-10	-30	-25	-14	-22	-17	32	-143
	16. Consolidated result (11–15)	86	282	-23	464	31	8	48	36	57	76	199	865