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Muenchener Rueckversicherungs-Gesellschaft AG — Earnings Release 2020
May 8, 2020
6208_10-q_2020-05-08_d0e03860-1690-4836-842a-47644bdde40f.pdf
Earnings Release
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7 May 2020
Quarterly statement: Low quarterly profit due to high COVID-19-related losses
- Munich Re generated a profit of €221m in Q1
- High COVID-19-related losses totalling about €800m, particularly in event cancellation insurance
- Strong investment result despite turmoil in the capital markets
- April renewals show premium growth (+25.7%) and rising prices (+3.0%)
"The impact of the coronavirus pandemic on lives and economies is on our minds every day. We express our sympathy for the victims and their families. Munich Re is doing everything it can to protect the health of its clients, staff members and their families. The high losses due to COVID-19 are financially manageable for Munich Re. Thanks to our strong balance sheet and our prudent risk management, we remain a reliable partner to our clients – even in these challenging times."
Christoph Jurecka, CFO
Summary of Q1 figures
Munich Re generated a profit of €221m (633m) in Q1 2020. The operating result fell to €397m, compared with €771m for the same quarter last year. In addition, the other non-operating result amounted to –€11m (–18m). The currency result was €144m (58m), particularly owing to US-dollar exchange rates that led to currency gains. The tax ratio was 53.5%, a high figure largely attributable to non-tax-deductible losses on disposal and write-downs on equities. Gross premiums written increased by 6.8% year on year to €14,284m.
At €29,116m, equity was down from the level at the start of the year (€30,576m), due in particular to a fall in valuation reserves on equities. The solvency ratio was 212% (237% as at 31 December 2019), which is comfortably within the ideal range (170–220%).
The balance sheet shows an annualised return on equity (RoE) of 3.9% in Q1.
Under its 2019/2020 share buy-back programme, Munich Re repurchased 4.2 million of its shares, with a total value of €1.0bn. As announced on 31 March 2020, implementation of the scheduled 2020/2021 share buy-back programme has been discontinued until further notice and until there is greater clarity both on the actual burdens arising from COVID-19 and on capital requirements for potential organic or inorganic business opportunities.
Reinsurance: result of €149m
The reinsurance field of business contributed €149m (548m) to the consolidated result in Q1. The operating result amounted to €298m (633m). Gross premiums written increased to €9,235m (8,380m).
Life and health reinsurance business generated a profit of €8m (180m) in Q1. Gross premiums written rose to €3,079m (2,896m). The low quarterly result in this segment is attributable mostly to negative developments in North America that are altogether unrelated to the coronavirus pandemic. Instead, the low result was caused by higher-than-anticipated mortality in the USA, a catch-up effect owing to delays in claims reporting, and premium refunds in excess of expectations for some old policies. In Canada, reserves for outstanding claims were increased following a further reduction in interest rates. Business outside of North America was within expectations; a negative loss experience in the United Kingdom was offset by a higher-thanexpected contribution to profits from Australia. The technical result, including business with non-significant risk transfer, was €56m (112m). Despite the weak start to 2020 in this segment, Munich Re still continues to assume that achieving its annual target of a technical result of €550m, including business with non-significant risk transfer, is still within reach.
Property-casualty reinsurance contributed €141m (367m) to the result in Q1. Premium volume rose to €6,156m (5,484m). The combined ratio (CR) was 106.0% (97.3%) of net earned premiums.
Major losses of over €10m each totalled €1,181m (479m). These figures include gains and losses from the settlement of major losses from previous years. Major-loss expenditure corresponds to 21.1% (9.7%) of net earned premiums, and was thus well above the long-term average expected value of 12%. Man-made major losses amounted to a considerable €973m (283m), mostly due to losses stemming from the cancellation or postponement of major events on account of the coronavirus pandemic. Major losses from natural catastrophes amounted to €208m (195m).
In Q1, loss reserves of around €224m were released for basic claims from prior years, which corresponds to 4.0% of net earned premiums. Munich Re still aims to set the amount of provisions for newly emerging claims at the very top end of the suitable estimation range, so that profits from the release of a portion of these reserves are possible at a later stage.
In the renewals as at 1 April 2020, Munich Re was able to increase written business volume to €2.1bn (+25,7%). It was possible to tap into growth opportunities, especially in Asia and with our global clients. By contrast, Munich Re once again selectively discontinued business including third-party liability in the United States, which no longer met risk/return expectations. At 1 April, business with the regional focus on Asia, particularly Japan and India, was up for renewal.
Price trends varied among the different markets in line with different claims experience. For instance, prices rose – considerably in some instances – for reinsurance cover in regions and classes of business with high claims. One example is Japan, which experienced high losses from typhoons in the last two years. Conversely, prices remained mostly stable in regions and classes of business with low claims experience, such as Europe. All in all, prices for the Munich Re portfolio increased by 3.0%. This percentage is, as always, risk-adjusted. In other words, price increases will be offset if they are associated with increased risk and consequently elevated loss expectations. Similarly, changes are offset by the composition of different classes of business in the portfolio so as to make valid comparisons possible.
Munich Re anticipates that the market environment will improve year on year in the next renewal round in July, as was the case with previous renewals in the current year.
ERGO: result of €72m
ERGO posted a profit of €72m (85m) for Munich Re in Q1. ERGO's operating result amounted to €99m (138m).
The ERGO Property-casualty Germany segment generated a profit of €21m (14m). Operative improvements more than offset losses from volatile equity markets in Q1. ERGO International increased its result to €46m (8m), thanks to ongoing good operational performance and the fact that portfolio optimisation is no longer a burden. ERGO Life and Health Germany reported a result of €5m (63m). Charges from write-downs on equities were not wholly compensated for by gains from hedging derivatives.
The combined ratios are at a very pleasing level. The Property-casualty Germany segment improved significantly year on year to 93.4% (98.1%). This is attributable to an encouraging rise in earned premiums and positive loss experience with lower major-loss expenditure. ERGO International's combined ratio remained at a good level of 95.2% (95.4%). COVID-19 did not have any appreciable effects on underwriting in the first quarter.
Overall premium income across all lines rose by 1.7% to €5,253m (5,165m); gross premiums written likewise rose slightly, to €5,050m (4,995m).
Investments: Investment result of €1,920m
The Group's investments (excluding insurance-related investments) performed well, with the investment result increasing to €1,920m (1,757m) in Q1 despite turmoil in the capital markets. The
balance of gains and losses on disposal excluding derivatives decreased to €377m (602m). Regular income from investments fell to €1,544m (1,611m). The net balance of derivatives rose to €1,600m (–231m). This very good net balance of derivatives is the result of hedging against interest-bearing investments and equities, which gained significantly in value due to developments in the capital markets. It was thus possible to largely compensate for write-downs and losses on the disposal of equities. Our prudent risk management and wide-ranging hedging strategies proved themselves in recent weeks, as they were truly tested by capital market developments.
Overall, the Q1 investment result represents a return of 3.1% on the average market value of the portfolio. The running yield was 2.5% and the yield on reinvestment was 1.9%. For purposes of risk mitigation, Munich Re reduced its equity-backing ratio, including equity derivatives, to 3.5% as at 31 March 2020 (6.4% as at 31 December 2019).
Our investment portfolio (excluding insurance-related investments) as at 31 March 2020 decreased compared with the 2019 year-end figure, with the carrying amount falling slightly to €227,949m (228,764m); the market values amounted to €247,196m (247,310m).
The Group's asset manager is MEAG. As at 31 March 2020 – in addition to managing the Group's own assets – MEAG managed third-party investments totalling €64.0bn (38.2bn). The significant year-on-year increase is largely due to a new mandate from an institutional client.
Outlook
On 31 March 2020, Munich Re announced that owing to COVID-19-related losses from the cancellation or postponement of major events and owing to the great uncertainty concerning the macroeconomic and financial impacts of COVID-19, Munich Re will – assuming a burden from major man-made and natural-catastrophe losses that is otherwise in line with expectations – not attain its profit guidance of €2.8bn for 2020 as a whole.
In view of ongoing uncertainties, Munich Re will not specify a new profit target for 2020 at this time (previously: around €2.8bn). The Company has likewise withdrawn its profit guidance for the reinsurance field of business (previously: around €2.3bn) and the combined ratio for propertycasualty reinsurance (previously: around 97%)1 .
The other subtargets announced in the Annual report 2019 remain unchanged. However, given the considerable uncertainty pertaining to further developments in the coronavirus pandemic and its economic impact, Munich Re faces a significantly higher risk of all its target figures not being attained.
1 …as well as the target for the Economic Earnings
As always, the projections are subject to major losses being within normal bounds, our 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 (Munich Reinsurance Company) Group Media Relations
www.munichre.com LinkedIn: https://de.linkedin.com/company/munich-re Twitter: @MunichRe
Königinstrasse 107, 80802 Munich, Germany
For media enquiries please contact Global Media Relations Jörg Allgäuer Tel.: +49 89 3891 8202 Mobil: +49 171 8384838
Media Relations Asia-Pacific Faith Thoms Tel.: +65 6318 0762 Mobile: +65 83390125 [email protected]
Group Media Relations Stefan Straub Tel.: +49 89 3891 9896 Mobile: +49 151 64933048 [email protected]
Media Relations North America Jodi Dorman Tel.: +1 609 243 4533 Mobile: +1 908 391 2427 [email protected] Financial Communications Frank Ziegler Tel.: +49 89 3891 3042 Mobile: +49 160 90121029 [email protected]
London Insurance Market Lillian Ng Tel.: +44 207 886 3952 Mobile: +44 7809495299 [email protected]
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 manager 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 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, cyber attacks or pandemics. The Group 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 Munich Re. Munich Re assumes no liability to update these forward-looking statements or to conform them to future events or developments.
Key figures
Munich Re at a glance
| Q1 2020 | Q1 2019 | Change | ||
|---|---|---|---|---|
| % | ||||
| Consolidated result | €m | 221 | 633 | -65.1 |
| Thereof attributable to non-controlling interests | €m | -1 | 0 | – |
| Earnings per share | € | 1.57 | 4.35 | -63.8 |
| Return on equity (RoE)1 | % | 3.9 | 10.9 | |
| Return on investment (Rol) | % | 3.1 | 3.0 |
1 The annualised RoE is calculated on the basis of the average equity capital as at 31 December 2019 and 31 March 2020, adjusted for unrealised gains/losses and currency translation.
| 31.3.2020 | 31.12.2019 | Change | ||
|---|---|---|---|---|
| % | ||||
| Share price | € | 184.10 | 263.00 | -30.0 |
| Munich Reinsurance Company's market capitalisation | €bn | 26.6 | 38.0 | -30.0 |
| Carrying amount per share | € | 207.03 | 215.32 | -3.9 |
| Investments | €m | 227,949 | 228,764 | -0.4 |
| Insurance-related investments | €m | 8,579 | 9,163 | -6.4 |
| Equity | €m | 29,116 | 30,576 | -4.8 |
| Off-balance-sheet unrealised gains and losses1 | €m | 20,597 | 19,913 | 3.4 |
| Net technical provisions | €m | 217,455 | 217,941 | -0.2 |
| Balance sheet total | €m | 292,554 | 287,553 | 1.7 |
| Number of staff | 39,641 | 39,662 | -0.1 |
1 Including those apportionable to minority interests and policyholders.
| Reinsurance | Q1 2020 | Q1 2019 | Change % |
|
|---|---|---|---|---|
| Gross premiums written | €m | 9,235 | 8,380 | 10.2 |
| Combined ratio property-casualty | % | 106.0 | 97.3 | |
| Investment result | €m | 929 | 641 | 45.0 |
| Consolidated result | €m | 149 | 548 | -72.9 |
| Thereof: Reinsurance – Life and health | €m | 8 | 180 | -95.6 |
| Thereof: Reinsurance – Property-casualty | €m | 141 | 367 | -61.7 |
| ERGO | Q1 2020 | Q1 2019 | Change % |
|
|---|---|---|---|---|
| Gross premiums written | €m | 5,050 | 4,995 | 1.1 |
| Combined ratio Property-casualty Germany | % | 93.4 | 98.1 | |
| Combined ratio International | % | 95.2 | 95.4 | |
| Investment result | €m | 991 | 1,116 | -11.2 |
| Consolidated result | €m | 72 | 85 | -14.7 |
| Thereof: Life and Health Germany | €m | 5 | 63 | -91.6 |
| Thereof: Property-casualty Germany | €m | 21 | 14 | 50.2 |
| Thereof: International | €m | 46 | 8 | 487.4 |
Outlook Munich Re (Group) 2020
| As at | From Annual | ||
|---|---|---|---|
| 31.03.2020 | Report 2019 | ||
| Gross premiums written1 | €bn | 52 | 52 |
| Technical result – Life and health reinsurance1,2 | €m | 550 | 550 |
| Combined ratio – Property-casualty reinsurance | % | withdrawn | 97 |
| Combined ratio – ERGO Property-casualty Germany1 | % | 92 | 92 |
| Combined ratio – ERGO Property-casualty International1 | % | 94 | 94 |
| Return on investment1,3 | % | 3 | 3 |
| Consolidated result | €bn | withdrawn | 2.8 |
| Economic Earnings | €bn | withdrawn | over 2.8 |
1 Substantial risk of falling short of this guidance, subject to the further development of the Covid-19 pandemic.
2 Including the result from business with non-significant risk transfer.
3 Excluding insurance-related investments.
Investment portfolio
| Unrealised | ||||||
|---|---|---|---|---|---|---|
| €m | Carrying amounts | gains/losses1 | Fair values | |||
| 31.3.2020 | 31.12.2019 | 31.3.2020 | 31.12.2019 | 31.3.2020 | 31.12.2019 | |
| Land and buildings, | ||||||
| including buildings on third-party land | 6,779 | 5,989 | 5,626 | 5,600 | 12,404 | 11,589 |
| Investments in affiliated companies, | ||||||
| associates and joint ventures | 3,067 | 2,847 | 997 | 968 | 3,905 | 3,646 |
| Loans | 52,196 | 52,507 | 12,782 | 12,147 | 64,978 | 64,654 |
| Other securities available for sale | 147,684 | 151,558 | 11,688 | 14,370 | 147,684 | 151,558 |
| Thereof: Fixed-interest | 132,361 | 132,120 | 9,809 | 10,738 | 132,361 | 132,120 |
| Thereof: Non-fixed-interest | 15,323 | 19,438 | 1,879 | 3,632 | 15,323 | 19,438 |
| Other securities at fair value through profit or loss | 5,051 | 2,781 | 5,051 | 2,781 | ||
| Thereof: Derivatives | 4,491 | 2,099 | 4,491 | 2,099 | ||
| Deposits retained on assumed reinsurance | 8,208 | 7,938 | 8,208 | 7,938 | ||
| Other investments | 4,964 | 5,144 | 4,964 | 5,144 | ||
| Total | 227,949 | 228,764 | 31,093 | 33,085 | 247,196 | 247,310 |
1 Including on- and off-balance-sheet unrealised gains and losses.
Investment result
| Q1 2020 | RoI1 | Q1 2019 | RoI1 | |
|---|---|---|---|---|
| €m | % | €m | % | |
| Regular income | 1,544 | 2.5 | 1,611 | 2.7 |
| Write-ups/write-downs of non-derivative investments | -1,459 | -2.4 | -83 | -0.1 |
| Gains/losses on the disposal of non-derivative investments | 377 | 0.6 | 602 | 1.0 |
| Net balance of derivatives | 1,600 | 2.6 | -231 | -0.4 |
| Other income/expenses | -142 | -0.2 | -142 | -0.2 |
| Total | 1,920 | 3.1 | 1,757 | 3.0 |
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 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 31.3.2020 | 31.12.2019 | Change | ||||||
| €m | €m | €m | €m | €m | % | |||
| A. | Intangible assets | |||||||
| I. | Goodwill | 2,981 | 2,941 | 41 | 1.4 | |||
| II. | Other intangible assets | 1,231 | 1,240 | -8 | -0.7 | |||
| 4,212 | 4,180 | 32 | 0.8 | |||||
| B. | Investments | |||||||
| I. | Land and buildings, including buildings | |||||||
| on third-party land | 13.2 | |||||||
| II. | Investments in affiliated companies, | |||||||
| associates and | ||||||||
| joint ventures | 7.7 | |||||||
| Thereof: | ||||||||
| Associates and joint | ||||||||
| ventures accounted for | ||||||||
| using the equity method | 7.4 | |||||||
| III. | Loans | -0.6 | ||||||
| IV. | Other securities | |||||||
| 1. Available for sale | 6,779 5,989 790 3,067 2,847 220 2,819 2,625 195 52,196 52,507 -311 147,684 151,558 -3,873 5,051 2,781 2,270 152,735 154,338 -1,604 8,208 7,938 270 4,964 5,144 -180 227,949 228,764 -815 8,579 9,163 -584 5,252 4,937 315 814 699 115 26,922 21,539 5,383 27,736 22,238 5,498 |
-2.6 | ||||||
| 2. At fair value through profit or loss | 81.6 | |||||||
| -1.0 | ||||||||
| V. | Deposits retained on assumed reinsurance | 3.4 | ||||||
| VI. | Other investments | -3.5 | ||||||
| -0.4 | ||||||||
| C. | Insurance-related investments | -6.4 | ||||||
| D. | Ceded share of technical provisions | 6.4 | ||||||
| E. | Receivables | |||||||
| I. | Current tax receivables | 16.5 | ||||||
| II. | Other receivables | 25.0 | ||||||
| 24.7 | ||||||||
| F. | Cash at banks, cheques and cash in hand | 5,815 | 4,994 | 821 | 16.4 | |||
| G. | Deferred acquisition costs | |||||||
| Gross | 9,579 | 9,664 | -86 | -0.9 | ||||
| Ceded share | -422 | -393 | -29 | -7.5 | ||||
| Net | 9,157 | 9,272 | -115 | -1.2 | ||||
| H. | Deferred tax assets | 358 | 316 | 41 | 13.1 | |||
| I. | Other assets | 3,186 | 3,289 | -102 | -3.1 | |||
| J. | Assets held for sale | 310 | 400 | -90 | -22.6 | |||
| Total assets | 292,554 | 287,553 | 5,000 | 1.7 |
Equity and liabilities
| 31.3.2020 | 31.12.2019 | Change | |||||
|---|---|---|---|---|---|---|---|
| €m | €m | €m | €m | % | |||
| A. | Equity | ||||||
| I. | Issued capital and capital reserve | 7,415 | 7,421 | -6 | -0.1 | ||
| II. | Revenue reserves | 15,099 | 12,804 | 2,295 | 17.9 | ||
| III. | Other reserves | 6,268 | 7,510 | -1,242 | -16.5 | ||
| IV. | Consolidated result attributable | ||||||
| to Munich Reinsurance Company equity holders | 222 | 2,724 | -2,503 | -91.9 | |||
| V. | Non-controlling interests | 112 | 117 | -5 | -3.9 | ||
| 29,116 | 30,576 | -1,460 | -4.8 | ||||
| B. | Subordinated liabilities | 3,866 | 3,839 | 27 | 0.7 | ||
| C. | Gross underwriting provisions | ||||||
| I. | Unearned premiums | 11,382 | 10,518 | 864 | 8.2 | ||
| II. | Provision for future policy benefits | 112,602 | 112,302 | 300 | 0.3 | ||
| III. | Provision for outstanding claims | 72,067 | 70,875 | 1,192 | 1.7 | ||
| IV. | Other underwriting provisions | 19,608 | 21,011 | -1,403 | -6.7 | ||
| 215,659 | 214,706 | 952 | 0.4 | ||||
| D. | Gross technical provisions | ||||||
| for unit-linked life insurance | 7,048 | 8,172 | -1,124 | -13.8 | |||
| E. | Other provisions | 5,352 | 5,291 | 61 | 1.2 | ||
| F. | Liabilities | ||||||
| I. | Notes and debentures | 304 | 297 | 7 | 2.3 | ||
| II. | Deposits retained on ceded business | 1,170 | 1,028 | 142 | 13.8 | ||
| III. | Current tax liabilities | 1,867 | 1,913 | -47 | -2.4 | ||
| IV. | Other liabilities | 26,067 | 19,643 | 6,424 | 32.7 | ||
| 29,408 | 22,882 | 6,526 | 28.5 | ||||
| G. | Deferred tax liabilities | 1,938 | 1,908 | 30 | 1.6 | ||
| H. | Liabilities related to | ||||||
| assets held for sale | 167 | 179 | -12 | -6.7 | |||
| Total equity and liabilities | 292,554 | 287,553 | 5,000 | 1.7 |
Consolidated income statement
| €m €m €m €m €m % Gross premiums written 14,284 13,375 909 6.8 1. Earned premiums Gross 13,229 12,389 840 6.8 Ceded -583 -757 174 23.0 Net 12,646 11,632 1,014 8.7 2. Income from technical interest 258 1,950 -1,692 -86.8 3. Expenses for claims and benefits Gross -10,019 -10,318 299 2.9 Ceded 388 404 -17 -4.1 Net -9,632 -9,914 282 2.8 4. Operating expenses Gross -3,285 -3,156 -129 -4.1 Ceded 133 136 -3 -2.5 Net -3,153 -3,020 -132 -4.4 5. Technical result (1–4) 119 647 -528 -81.6 6. Investment result 1,920 1,757 163 9.3 Thereof: Income from associates and joint ventures accounted for using the equity method 12 47 -35 -74 7. Insurance-related investment result -1,145 554 -1,699 – 8. Other operating income 227 203 24 12.1 9. Other operating expenses -466 -439 -26 -6.0 10. Deduction of income from technical interest -258 -1,950 1,692 86.8 11. Non-technical result (6–10) 278 123 155 125.5 12. Operating result (5+11) 397 771 -374 -48.5 13. Other non-operating result -11 -18 7 40.9 14. Currency result 144 58 85 146.2 15. Net finance costs -55 -56 1 2.2 16. Taxes on income -255 -122 -132 -108.0 17. Consolidated result (12–16) 221 633 -412 -65.1 Thereof: Attributable to Munich Reinsurance Company equity holders 222 632 -411 -64.9 Attributable to non-controlling interests -1 0 -1 – € € € % Earnings per share 1.57 4.35 -2.78 -63.8 |
Q1 2020 | Q1 2019 | Change | ||
|---|---|---|---|---|---|
Segment balance sheet
| Segment assets | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reinsurance | ERGO | Total | ||||||||||||
| Life and Health | Property-casualty | |||||||||||||
| Life and health | Property-casualty | Germany | Germany | International | ||||||||||
| €m | 31.3.2020 31.12.2019 | 31.3.2020 31.12.2019 | 31.3.2020 31.12.2019 | 31.3.2020 31.12.2019 | 31.3.2020 31.12.2019 | 31.3.2020 31.12.2019 | ||||||||
| A. | Intangible assets | 302 | 319 | 2,349 | 2,316 | 197 | 199 | 1,191 | 1,170 | 173 | 175 | 4,212 | 4,180 | |
| B. | Investments | |||||||||||||
| I. | Land and buildings, including buildings on third-party land | 186 | 190 | 3,186 | 2,369 | 3,076 | 3,101 | 227 | 225 | 104 | 105 | 6,779 | 5,989 | |
| II. | Investments in affiliated companies, associates and joint ventures | 51 | 48 | 1,807 | 1,827 | 373 | 378 | 107 | 113 | 729 | 481 | 3,067 | 2,847 | |
| Thereof: | ||||||||||||||
| Associates and joint ventures accounted | ||||||||||||||
| for using the equity method | 27 | 27 | 1,718 | 1,761 | 313 | 322 | 44 | 43 | 717 | 471 | 2,819 | 2,625 | ||
| III. | Loans | 475 | 471 | 620 | 536 | 49,313 | 49,713 | 1,428 | 1,433 | 359 | 354 | 52,196 | 52,507 | |
| IV. | Other securities | |||||||||||||
| 1. Available for sale | 22,940 | 22,661 | 48,468 | 50,533 | 54,846 | 56,676 | 5,134 | 5,334 | 16,297 | 16,353 | 147,684 | 151,558 | ||
| 2. fair value through profit or loss | 157 | 83 | 2,090 | 897 | 2,339 | 1,336 | 79 | 23 | 386 | 441 | 5,051 | 2,781 | ||
| 23,096 | 22,744 | 50,558 | 51,431 | 57,185 | 58,013 | 5,213 | 5,357 | 16,683 | 16,794 | 152,735 | 154,338 | |||
| V. | Deposits retained on assumed reinsurance | 5,011 | 4,791 | 3,132 | 3,082 | 44 | 43 | 22 | 22 | 0 | 0 | 8,208 | 7,938 | |
| VI. | Other investments | 440 | 722 | 3,162 | 2,858 | 1,132 | 1,329 | 117 | 74 | 114 | 161 | 4,964 | 5,144 | |
| 29,260 | 28,967 | 62,464 | 62,103 | 111,122 | 112,577 | 7,114 | 7,222 | 17,989 | 17,895 | 227,949 | 228,764 | |||
| C. | Insurance-related investments | 1,470 | 1,070 | 409 | 290 | 4,501 | 5,216 | 0 | 0 | 2,198 | 2,587 | 8,579 | 9,163 | |
| D. | Ceded share of technical provisions | 1,775 | 1,529 | 2,799 | 2,732 | 15 | 14 | 79 | 52 | 584 | 610 | 5,252 | 4,937 | |
| E. | Assets held for sale | 0 | 10 | 0 | 157 | 0 | 0 | 0 | 0 | 310 | 234 | 310 | 400 | |
| F. | Other segment assets | 16,811 | 14,826 | 14,942 | 13,852 | 9,588 | 7,034 | 2,080 | 1,637 | 2,831 | 2,760 | 46,252 | 40,109 | |
| Total segment assets | 49,618 | 46,721 | 82,963 | 81,449 | 125,424 | 125,039 | 10,465 | 10,082 | 24,085 | 24,262 | 292,554 | 287,553 |
Segment equity and liabilities
| Total | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31.3.2020 31.12.2019 | ||||||||||||
| 917 | 956 | 2,937 | 2,871 | 0 | 0 | 0 | 0 | 13 | 13 | 3,866 | 3,839 | |
| I. Unearned premiums |
374 | 337 | 7,794 | 7,583 | 321 | 282 | 1,066 | 507 | 1,828 | 1,809 | 11,382 | 10,518 |
| 112,302 | ||||||||||||
| III. | 9,799 | 9,563 | 51,858 | 50,696 | 2,816 | 2,970 | 4,777 | 4,779 | 2,816 | 2,868 | 72,067 | 70,875 |
| IV. | 210 | 340 | 247 | 274 | 18,370 | 19,574 | 99 | 99 | 683 | 724 | 19,608 | 21,011 |
| 214,706 | ||||||||||||
| 8,172 | ||||||||||||
| 5,291 | ||||||||||||
| 179 | ||||||||||||
| 24,790 | ||||||||||||
| 256,978 | ||||||||||||
| 30,576 | ||||||||||||
| 292,554 | 287,553 | |||||||||||
| Subordinated liabilities Gross technical provisions II. Provision for future policy benefits Provision for outstanding claims Other underwriting provisions Gross technical provisions for unit-linked life insurance contracts Other provisions Liabilities related to assets held for sale Other segment liabilities Total segment liabilities |
12,669 23,052 0 221 0 12,734 36,924 |
Life and health 31.3.2020 31.12.2019 12,607 22,848 0 233 0 10,522 34,559 |
26 59,925 0 752 0 10,125 73,739 |
Reinsurance Property-casualty 31.3.2020 31.12.2019 26 58,579 0 805 0 8,049 70,303 |
89,941 111,448 4,837 2,010 0 6,575 124,869 |
Life and Health Germany 31.3.2020 31.12.2019 89,698 112,525 5,572 1,992 0 4,282 124,370 |
407 6,349 0 1,177 0 600 8,126 |
Property-casualty Germany 31.3.2020 31.12.2019 409 5,793 0 1,061 0 631 7,486 |
9,558 14,884 2,211 1,193 167 1,313 19,780 |
ERGO International 31.3.2020 31.12.2019 9,562 14,962 2,600 1,200 179 1,306 20,260 Equity Total equity and liabilities |
112,602 215,659 7,048 5,352 167 31,346 263,438 29,116 |
Segment income statement
| Reinsurance | ERGO | Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Life and Health | Property-casualty | ||||||||||||
| Life and health | Property-casualty | Germany | Germany | International | |||||||||
| €m | Q1 2020 | Q1 2019 | Q1 2020 | Q1 2019 | Q1 2020 | Q1 2019 | Q1 2020 | Q1 2019 | Q1 2020 | Q1 2019 | Q1 2020 | Q1 2019 | |
| Gross premiums written | 3,079 | 2,896 | 6,156 | 5,484 | 2,315 | 2,346 | 1,439 | 1,349 | 1,295 | 1,300 | 14,284 | 13,375 | |
| 1. | Net earned premiums | 2,777 | 2,497 | 5,587 | 4,931 | 2,275 | 2,275 | 866 | 789 | 1,141 | 1,140 | 12,646 | 11,632 |
| 2. | Income from technical interest | 171 | 153 | 263 | 291 | 91 | 1,256 | 17 | 19 | -284 | 231 | 258 | 1,950 |
| 3. | Net expenses for claims and benefits | -2,397 | -2,084 | -4,243 | -3,186 | -1,944 | -3,118 | -543 | -522 | -506 | -1,004 | -9,632 | -9,914 |
| 4. | Net operating expenses | -537 | -482 | -1,682 | -1,618 | -338 | -335 | -280 | -263 | -315 | -323 | -3,153 | -3,020 |
| 5. | Technical result (1–4) | 14 | 85 | -74 | 418 | 83 | 78 | 59 | 23 | 36 | 44 | 119 | 647 |
| 6. | Investment result | 226 | 243 | 703 | 398 | 839 | 992 | 51 | 45 | 100 | 79 | 1,920 | 1,757 |
| 7. | Insurance-related investment result | -14 | 13 | -41 | 13 | -750 | 365 | 0 | 0 | -340 | 164 | -1,145 | 554 |
| 8. | Other operating result | 11 | 2 | -93 | -94 | -93 | -69 | -38 | -40 | -25 | -36 | -239 | -237 |
| 9. | Deduction of income from technical interest | -171 | -153 | -263 | -291 | -91 | -1,256 | -17 | -19 | 284 | -231 | -258 | -1,950 |
| 10. | Non-technical result (6–9) | 52 | 104 | 306 | 26 | -95 | 31 | -4 | -14 | 19 | -24 | 278 | 123 |
| 11. | Operating result (5+10) | 66 | 189 | 232 | 444 | -11 | 109 | 55 | 9 | 55 | 20 | 397 | 771 |
| 12. | Other non-operating result | 0 | -1 | -1 | -8 | -3 | -4 | -3 | -3 | -3 | -3 | -11 | -18 |
| 13. | Currency result | -6 | 20 | 134 | 39 | 20 | 5 | -8 | -5 | 4 | -1 | 144 | 58 |
| 14. | Net finance costs | -10 | -10 | -31 | -32 | -6 | -6 | -1 | -1 | -7 | -7 | -55 | -56 |
| 15 | Taxes on income | -42 | -18 | -193 | -76 | 5 | -42 | -22 | 14 | -3 | -1 | -255 | -122 |
| 16. | Consolidated result (11–15) | 8 | 180 | 141 | 367 | 5 | 63 | 21 | 14 | 46 | 8 | 221 | 633 |