Muenchener Rueckversicherungs-Gesellschaft AG — Interim / Quarterly Report 2011

Nov 8, 2011

QUARTERLY FINANCIAL STATEMENTS AS AT 30 SEPTEMBER 2011

Media telephone conference

8 November 2011

Overview – Financial highlights	Jörg Schneider	2
Munich Re (Group)	Jörg Schneider	4
Primary insurance	Torsten Oletzky	13
Reinsurance	Torsten Jeworrek	18
Summary and outlook	Jörg Schneider	23

Overview – Financial highlights year of extremes Munich Re (Group)	Sound underlying performance in core business in a
Net profit of €290m in Q3 … including substantial countervailing non-recurring effects Net profit of €80m after nine months	Strong capital position … allowing market to be taken opportunities – Increase of Group equity to €22.2bn – High dividend capacity (supported by US dividend)	Resilient investment result given market turmoil High level of portfolio diversification proves beneficial Annualised RoI of 3.3%1
Reinsurance	Primary insurance	Munich Health
Combined ratio of 89.0% in Q3 Following large nat cat losses in H1 combined ratio of 117.9% in Q1–3 2011 Life reinsurance sustains good underlying development	Different lines of business showing diverging trends … partially impacted by non recurring items Consolidated ERGO result of €260m – in FY 2011 aiming for result on prior year's level	Combined ratio of 97.6% in Q3 Stable operating result Net result distorted by negative currency effects

¹ Adjusted for impact on insurance risk transfer to the capital markets: RoI 3.1%.

Agenda
Overview – Financial highlights
Munich Re (Group)
Primary insurance
Reinsurance
Summary and outlook
	Quarterly financial statements as at 30 September 2011 4

Overview – Financial highlights	After nine months Munich Re returns to positive result
GROUP	GROUP	GROUP
Gross premiums written	Operating result	Net result
€m	€m	€m
Q1–3	Q1–3	Q1–3
34,060	3,367	1,955
2010	2010	2010
Q1–3	Q1–3	Q1–3
37,166	402	80
2011	2011	2011
Continued strong organic	Severe large claims and capital	Weaker euro putting additional
growth, mainly in reinsurance	market turmoil leaving their mark	pressure on net result
REINSURANCE	PRIMARY INSURANCE	MUNICH HEALTH
Net result	Net result	Net result
€m	€m	€m
Q1–3	Q1–3	Q1–3
1,659	432	57
2010	2010	2010

Impairments on Greek bonds compensated for positive one-offs

Q1–3 ^{2011 418}

Q1–3 ^{2011 108}

High cat losses, lower investment result and negative FX impact

^{2011 31} Stable operating result burdened by negative FX impact

Q1–3

Quarterly financial statements as at 30 September 2011 8 ² Thereof 11% inflation-linked bonds. ³Additional inflation-linked exposure in swaps 1% and bank and corporate exposure in credit default swaps 2% of fixed-income portfolio. ⁴ P/H = policyholder. Economic view – not fully

comparable with IFRS figures. ⁵ Differences between totals possible due to rounding.

Munich Re (Group) – Investment result

Stable regular income despite low yields – Write-down on Greek government bonds

Investment result
	€m	Q1–3 2011	Return1	€m	Q1–3 2010	Return1
Regular income	6,064		4.1%	5,844		4.0%
Write-ups/write-downs of investments	–1,640		–1.1%	290		0.2%
Gains/losses on the disposal of investments	1,196		0.8%	1,409		1.0%
Other income/expenses	–805		–0.5%2	–262		–0.2%
Investment result	4,815		3.3%	7,281		5.0%
Regular income		Write-ups/write-downs			Gains/losses on disposal
Higher dividend income Increase in deposits retained on assumed reinsurance as a consequence of large volume deals		Write-down on Greek government bonds (€933m) and on equities (€456m) High impact of derivatives: Swaptions (€275m) and other fixed-interest derivatives benefit from lower interest rates, while credit and inflation swaps depreciate			Disposal gain from sale of real estate in Singapore and reduction of equities Gains on equity derivatives compensate for impairments on equities in Q3

Write-up from insurance risk transfer to the capital markets (€211m)

on equities in Q3 Higher disposal gains on fixedinterest instruments in the

¹ Return on quarterly weighted investments (market values) in % p.a. ² Negative impact from unit-linked business included.

Current reinvestment yield ~3.4%

Quarterly financial statements as at 30 September 2011 9

previous year

Munich Re (Group) – Premium development Strong organic growth
€m
Gross premiums written Q1–3 2010	34,060
Foreign-exchange effects	–620
Divestment/ Investment	246
Organic change	3,480
Gross premiums written Q1–3 2011	37,166
Breakdown by	Reinsurance	Primary insurance
segment	Property-casualty	Property-casualty
(consolidated)	12,489 (33%)	4,371 (12%)
	(▲ 9.1%)	(▲ 2.5%)
	Reinsurance	Primary insurance
	Life: 7,104 (19%)	Life: 4,474 (12%)
	(▲ 22.1%)	(▲ –4.5%)
	Munich Health	Primary insurance
	4,406 (12%) (▲ 19.0%)	Health Germany: 4,322 (12%) (▲ 4.2%)

Segmental results Munich Re (Group) – Operating and consolidated result

€m	Q1–3 2010 Q1–3 2011	Operating result		Consolidated result
Reinsurance Life		569 503		356 206
Reinsurance Property-casualty		–546	1,943	1,303 –98
Reinsurance Subtotal		–43	2,512	1,659 108
Primary insurance Life		331 207		202 106
Primary insurance Health		146 141		90 72
Primary insurance Property-casualty		446 458		140 240
Primary insurance Subtotal		923 806		432 418
Munich Health		114 119		57 31
Munich Re (Group)		402	3,367	80	1,955

Agenda
Overview – Financial highlights
Munich Re (Group)
Primary insurance
Reinsurance
Summary and outlook

€m Gross premiums 13,132 written Q1–3 2010 Foreign-exchange –34 effects Divestment/ 0 Investment Organic change 109 Gross premiums 13,207 written Q1–3 2011 Property-casualty Life Asia/Pacific Germany Breakdown 4,405 (33%) 4,475 (34%) 1% (1%) 76% (76%) by segment (▲ 2.5%) (▲ –4.4%) Other Europe 23% (23%) Health Germany 4,327 (33%) (▲ 4.2%) (segmental, not consolidated) (consolidated)	Primary insurance – Premium development Overall stable premium income

	Primary insurance – Life – New business		Life: New business (statutory premiums)
Total						Comments
€m	Total	Regular premiums	Single premiums	APE1		Germany
Q1–3 2010	2,247	327	1,920	519	 Growth of regular premiums  Single-premium business down – for whole market  Good growth in corporate pension business International  Strong growth in Belgium (APE 23.1%) and Poland (APE 20.3%)
Q1–3 2011	2,024	363	1,661	529
Δ	–9.9%	11.0%	–13.5%	1.9%			in unit-linked business		 Austria (APE –30.6%): lower single premiums, mainly
Germany						International
€m	Total	Regular premiums	Single premiums	APE1		€m	Total	Regular premiums	Single premiums	APE1
Q1–3 2010	1,505	216	1,289	345		Q1–3 2010	742	111	631	174
Q1–3 2011	1,322	235	1,087	343		Q1–3 2011	702	128	574	186
Δ	–12.2%	8.8%	–15.7%	–0.6%		Δ	–5.4%	15.3%	–9.0%	6.9%
			1 Annual premium equivalent (APE = regular premiums +10% single premiums).						Quarterly financial statements as at 30 September 2011

Higher combined ratio in Germany – Improving international business Primary insurance – Property-casualty – Combined ratio % 2009 93.2 Loss ratio Expense ratio 60.3

2009			93.2				60.3				32.9
2010			96.8	63.1							33.7
	Q1–3 2010		95.6					63.0			32.6
	Q1–3 2011		96.8		63.5 33.3
%
96.3	93.3	93.3		98.7	94.5	93.6	100.4	98.2	94.7	97.5	 Combined ratio Germany (91.7%1 ) burdened by weather-related losses (severe storms)  Improving combined ratio
Q1	Q2	Q3	90.3 Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	of international business (104.4%1 ) despite still high claims and costs especially in motor business
		2009				2010			2011
1 Q1–3 2011.											Quarterly financial statements as at 30 September 2011

Agenda
Overview – Financial highlights
Munich Re (Group)
Primary insurance
Reinsurance
Summary and outlook
	Quarterly financial statements as at 30 September 2011 18

	Reinsurance – Premium development Strong increase driven by organic growth
€m
Gross premiums written Q1–3 2010	17,628
Foreign-exchange effects	–509
Divestment/ Investment	–
Organic change	2,846
Gross premiums written Q1–3 2011	19,965
Breakdown by segment	Property-casualty 12,765 (64%) (▲ 9.0%)	Life 7,200 (36%) (▲ 21.7%)	Middle East/Africa 3% (3%) Asia/Pacific 18% (14%) Latin America	North America 41% (42%) Europe
			5% (5%)	33% (36%)
	(segmental, not consolidated)		(consolidated)	Quarterly financial statements as at 30 September 2011 19

Agenda
Overview – Financial highlights
Munich Re (Group)
Primary insurance
Reinsurance
Summary and outlook

Outlook 2011 Positive annual result envisaged
Munich Re (Group)
GROSS PREMIUMS WRITTEN €49–50bn (prev. €48–50bn)	RETURN ON INVESTMENT Slightly below 3.5% (prev. slightly below 4%)	PROFIT Aiming for a positive Q4 and FY 2011 result RoRaC target of 15% after tax over the cycle to stand
Reinsurance	Primary insurance	Munich Health
COMBINED RATIO P-C <97% over the cycle – Not achievable in 2011	COMBINED RATIO P-C Slightly above 95% (prev. <95%)	Positive earnings contribution while concluding consolidation phase
GROSS PREMIUMS WRITTEN ~€26.5bn (prev. ~€26bn)	GROSS PREMIUMS WRITTEN ~€17.5bn (prev. €17–18bn)	GROSS PREMIUMS WRITTEN ~€6bn Quarterly financial statements as at 30 September 2011 24

Munich Re

Disclaimer

This presentation contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.