Muenchener Rueckversicherungs-Gesellschaft AG — Interim / Quarterly Report 2012

May 8, 2012

GOOD START TO THE YEAR 2012 QUARTERLY FINANCIAL STATEMENTS AS AT 31 MARCH 2012

8 May 2012

Jörg Schneider Torsten Jeworrek

Financial reporting Q1 2012 Munich Re (Group)	2
Primary insurance	10
Munich Health	17
Reinsurance	20
Outlook	29
Backup	31

After strong Q1 well on track to meet 2012 financial
SHAREHOLDERS' EQUITY €24.4bn (+4.8% vs. Q4)	INVESTMENT RESULT Annualised RoI of 4.3%
Strong capitalisation according to all metrics allows us to seize profitable growth opportunities	RoI above full-year average expectation – prudent asset management remains key in volatile capital market environment
Primary insurance	Munich Health
COMBINED RATIO 95.3%	COMBINED RATIO 99.5%
Improving international business All segments with significant earnings contribution	Ongoing organic premium growth – stable operating result while net result distorted by negative currency effects

Low nat cat claims and calmer capital markets supporting good results Munich Re (Group) – Key figures

Quarterly financial statements as at 31 March 2012 5

¹ Segments do not add up to total amount; difference relates to the segment "asset management". ² Other non-operating result, goodwill impairments, net finance costs, taxes.

deposits with banks, investment funds (excl. equities), derivatives and investments in renewable energies. ³Net of hedges: 2.1% (2.0%). ⁴As at 31.3.2012. Net DV01: Sensitivity to parallel upward shift of yield curve by one basis

Quarterly financial statements as at 31 March 2012 7 point reflecting portfolio size. ⁵ European Community, European Investment Bank, EFSF and other.

Quarterly financial statements as at 31 March 2012 8 ²Additional inflation-linked exposure in swaps 3% and bank and corporate exposure in credit default swaps 2% of fixed-income portfolio. ³ European Community, European Investment Bank, EFSF and other.

High investment result, given low-yield environment Munich Re (Group) – Investment result

Investment result				€m
	Q1 2012	Return1	Q1 2011	Return1
Regular income	1,889	3.6%	1,903	3.9%
Write-ups/write-downs	–179	–0.3%	–137	–0.3%
Disposal gains/losses	372	0.7%	400	0.8%
Other income/expenses	162	0.3%2	–210	–0.4%
Investment result	2,244	4.3%	1,956	4.0%
Regular income	Write-ups/write-downs	€m	Disposal gains/losses	€m
 Decreased running yield due to	Major effects	Q1 2012	Major effects	Q1 2012
reinvestment at lower yield and increased	Equities	–28	Equities	151
market values  Average reinvestment	Swaptions	–17	Fixed-income	310

¹ Return on quarterly weighted investments (market values) in % p.a. ² Positive impact from unit-linked business (€292m) included.

Agenda
Financial reporting Q1 2012
Munich Re (Group)
Primary insurance
Munich Health
Reinsurance
Outlook
Backup
	Quarterly financial statements as at 31 March 2012 10

Agenda
Financial reporting Q1 2012
Munich Re (Group)
Primary insurance
Munich Health
Reinsurance
Outlook
Backup

Munich Health – Premium development Significant organic growth
Gross premiums written		€m	Segmental breakdown1 €m
Q1 2011	1,487		Reinsurance Primary insurance 1,093 (65%) 587 (35%)
Foreign-exchange effects	39		(▲ 11.4%) (▲ 16.0%)
Divestment/Investment	–
Organic change	154
Q1 2012	1,680
Gross premiums written			€m
Q1 2011	1,487		Reinsurance Organic growth and large-volume deals
Reinsurance	112
Primary insurance	81		Primary insurance Premium growth in USA, Spain and United
Q1 2012	1,680		Kingdom
1 Gross premiums written.			Quarterly financial statements as at 31 March 2012 18

Munich Health – Key figures Munich Health
Net result									€m
27	41	6	17	18	–18	8	5	17	5
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q1	Q1
	20101			2011			2012	2011	2012
Technical result			€m		Investment result		€m	Other2	€m
5		12			34		33	–20	–27
Q1 2011		Q1 2012			Q1 2011		Q1 2012	Q1 2011	Q1 2012
	Increase in reinsurance, Increased regular income, decline in US primary business lower disposal gains							Negative FX effects
	1 Figures up to 2010 are shown on a partly consolidated basis. Quarterly financial statements as at 31 March 2012 2 Other non-operating result, goodwill impairments, net finance costs, taxes.						19

Agenda
Financial reporting Q1 2012
Munich Re (Group)
Primary insurance
Munich Health
Reinsurance
Outlook
Backup
	Quarterly financial statements as at 31 March 2012 20

Significantly improved portfolio quality driven by nat cat business in Japan and USA Reinsurance – April renewal

Munich Re portfolio – Premium change in major business lines
		Total			Property	Specialty2 Casualty
Business line Premium split1	€1.2bn	Prop. 54%	XL 46%	Prop. 19%	XL 34%	Prop./XL 35%	Prop./XL 12%
Price change	3 ~5.0%	0.7%	15.2%	1.1%	14.2%	0.1%	7.0%
Volume change	–2.9%	–10.3%	5.9%	–19.7%	17.2%	–7.8%	–18.9%
PRICE  Overall price increase of ~5% driven by property XL USA: Nat cat up to +10%  Proportional business remains flat  Primarily loss-driven price increase of 4.5% in marine business	Japan: Earthquake +35%, windstorm +10% Japan: Significant price increase for earthquake USA: Primary rates continue to slightly increase			VOLUME	and from casualty to property	 Improved business mix – shift from proportional to XL  Japan: Increase of earthquake and windstorm XL …  … partly compensating for deliberate reduction of earthquake quota-share and other fire business  Clear focus on improved terms and conditions  Introduction of event limits, increased transparency  Risk-management-driven rejection of business, as prices could not fully reflect increased event risks

²Marine, credit and aviation. ³ Price increase including positive business mix effect (~3%) amounts to ~8%.

Reinsurance – Renewals – Outlook Outlook for July renewal
Regional allocation of July renewal North America 27	% Worldwide 26	Highlights	Renewal focus on North America
TOTAL Australia/ €1.8bn New Zealand 17	Rest1 9	(Australia/New Zealand)	Renewal of business in loss-affected areas
Latin America 17	Europe 3		High nat cat share of ~30%
July renewal – Price expectation
North America	Australia/New Zealand		Latin America
Up to low double-digit – Positive price impact from RMS11	Significant double-digit – Trend should continue		Single-digit to low double-digit – similar to January renewal
1 Asia/ Pacific/Africa.			Quarterly financial statements as at 31 March 2012 28

Agenda
Financial reporting Q1 2012
Munich Re (Group)
Primary insurance
Munich Health
Reinsurance
Outlook
Backup
	Quarterly financial statements as at 31 March 2012 29

Outlook 2012
Munich Re (Group)
GROSS PREMIUMS WRITTEN €49–51bn	RETURN ON INVESTMENT ~3.5%	NET RESULT ~€2.5bn
Reinsurance €26–27bn Primary insurance €17–18bn	Ongoing low-interest-rate environment gradually reducing running yield to below 4%	RoRaC target of 15% after tax over the cycle to stand Significantly improving
~€6.5bn Munich Health		technical result
Reinsurance Combined ratio	Primary insurance Combined ratio	Munich Health Combined ratio
~96% over the cycle	<95%	~99%
Net result €1.9–2.1bn	Net result ~€450m	Net result ~€50m
		Quarterly financial statements as at 31 March 2012 30

Backup
Financial reporting Q1 2012
Munich Re (Group)
Primary insurance
Munich Health
Reinsurance
Outlook
Backup

Backup: Munich Re (Group) Premium development
Gross premiums written		€m
Q1 2011	12,980
Foreign-exchange	242
Divestment/Investment	–45
Organic change	88
Q1 2012	13,265
Segmental breakdown		€m
Reinsurance – Property-casualty 4,245 (32%) (▲ –2.7%)		Primary insurance – Property-casualty 1,835 (14%) (▲ 2.6%)
		Primary insurance – Life
		1,449 (11%) (▲ –4.8%)
		Primary insurance – Health 1,457 (11%) (▲ 0.1%)
Reinsurance – Life 2,599 (19%) (▲ 9.9%)		Munich Health 1,680 (13%) (▲ 13.0%)
		Quarterly financial statements as at 31 March 2012

93.1	92.3	109.2	103.8	93.8	96.0		99.8	87.3	101.8	94.6
55.5	52.5	58.2	55.2	55.6	45.8	58.6	51.6	50.4	42.7	57.4
Q3	Q4	Q1	Q2	Q3	Q4	Q13	Q2	Q3	Q4	Q1
20092										2012
5.2	9.2	20.8	11.2	6.8	11.7		12.4	5.9	23.1	5.3
0.8		2.0	5.4	1.5	3.9	2.5	5.2	1.6	4.0	1.0
Q3 20092	Q4	Q1	Q2	Q3	Q4	Q13	Q2	Q3	Q4	Q1 2012
		Combined ratio 1 Nat cat vs. man-made Nat cat ratio –2.1	Combined ratio vs. basic losses	Reinsurance – Property-casualty – Combined ratio Basic loss ratio Man-made ratio	Development of combined ratio 20102 20102		161.3 70.8		2011 2011

³ After insurance risk transfer to the capital markets.

Backup: Investments
	Breakdown of regular income

	Investment result –								Q1	Q1
	Regular income (€m)								2012	2011	Change
	Afs fixed-interest								1,055	1,080	–25
	Afs non-fixed-interest								46	37	9
Derivatives									48	65	–17
Loans									565	537	28
Real estate									81	90	–9
	Deposits retained on assumed reinsurance and other investments 94							94	–
	Total regular income								1,889	1,903	–14
€m		Regular income			Average €1,963m
2,027				2,036				2,154	2,007	1,975
	1,928	1,925	1,882		1,926	1,905	1,903				1,889
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
	2009				2010				2011		2012

Breakdown of net result from disposals Backup: Investments

unich RE 玉

Investment result – Net result from disposal of investments (€m)	Q1 2012	Q1 2011	Change
Afs fixed-interest	280	159	121
Afs non-fixed-interest	151	347	–196
Derivatives	–131	–116	–15
Loans	30	–2	32
Real estate	38	18	20
Deposits retained on assumed reinsurance and other investments	4	–6	10
Total net result from disposals	372	400	–28
Net result from disposals Average €377m €m 655 543 430 400 392 362 280 240 240	556	48	372
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2	Q3	Q4	Q1
2009 2010	2011		2012

Fixed-income portfolio: Banks Backup: Investments

Senior, subordinated and loss-bearing bonds exposure by country				€m
Country	Senior bonds	Subordinated bonds	Loss-bearing bonds	Total
Germany	2,088	331	251	2,670
US	1,555	246	49	1,850
UK	571	47	31	649
Ireland	215	0	0	215
Canada	143	50	17	210
Australia	194	0	1	195
Austria	120	26	20	166
Netherlands	159	0	3	162
Italy	52	62	8	122
France	92	19	4	115
Spain	6	8	0	14
Other	198	18	24	240
Total	5,393	807	408	6,608

Economic view – not fully comparable with IFRS figures.

Fixed-income portfolio: Structured products Backup: Investments

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	Structured products portfolio (at market values): Split by rating and region										€m
				Rating				Region
		AAA	AA	A	BBB	<bbb< td="">	NR	USA + RoW	Europe	Total	Market to-par	NR	USA + RoW	Europe	Total	Market to-par
ABS	Consumer-related ABS1	445	172	208	77	5	0	399	508	907	100%
	Corporate-related ABS2	21	295	60	40	24	0	0	440	440	94%
	Subprime HEL	6	2	23	6	1	0	38	0	38	99%
CDO/ CLN	Subprime-related	0	0	0	0	0	0	0	0	0	0%
	Non-subprime-related	24	64	25	24	0	37	1	173	174	81%
MBS	Agency	2,042	98	0	0	0	0	2,140	0	2,140	107%
	Non-agency prime	443	187	144	27	23	0	106	718	824	98%
	Non-agency other (not subprime)	57	114	21	0	3	0	64	131	195	95%
	Commercial MBS	798	278	319	21	14	0	784	646	1,430	99%
	Total 31.3.2012	3,836	1,210	800	195	70	37	3,532	2,616	6,148	100%
	In %	62%	20%	13%	3%	1%	1%	57%	43%	100%
	Total 31.12.2011	4,008	1,053	831	184	100	36	3,527	2,685	6,212	98%

¹ Consumer loans, auto, credit cards, student loans. ² Asset-backed CPs, business and corporate loans, commercial equipment.

Economic view – not fully comparable with IFRS figures.

Sensitivities to interest rates, spreads and equity markets
Sensitivity to risk-free interest rates – Basis points	–100	–50	+100	+200
Change in gross market value (€bn)	14.3	6.9	–12.2	–22.3
1 Change in on-balance-sheet reserves, net (€bn)	3.6	1.7	–3.1	–5.8
1 Change in off-balance-sheet reserves, net (€bn)	0.7	0.3	–0.6	–1.1
1 P&L impact (€bn)	0.5	0.2	–0.4	–0.7
Sensitivity to spreads2 (change in basis points)			+100	+200
Change in gross market value (€bn)			–8.3	–15.3
1 Change in on-balance-sheet reserves, net (€bn)			–1.4	–2.7
1 Change in off-balance-sheet reserves, net (€bn)			–0.5	–0.9
P&L impact (€bn) 1			–0.3	–0.6
Sensitivity to equity markets3	–30%	–10%	+10%	+30%
EURO STOXX 50 (2,477 as at 31.3.2012)	1,734	2,229	2,725	3,220
Change in gross market value (€bn)	–1.8	–0.6	0.6	1.8
1 Change in on-balance-sheet reserves, net (€bn)	–0.6	–0.3	0.5	1.5
1 Change in off-balance-sheet reserves, net (€bn)	–0.4	–0.1	0.1	0.4
P&L impact (€bn) 1	–0.7	–0.1	–0.1	–0.1

policyholder participation and deferred tax; linearity of relations cannot be assumed. Economic view – not fully

comparable with IFRS figures. ² Sensitivities to changes of spreads are calculated for every category of fixed-interest securities,

except government securities with AAA ratings.

Backup: Investments

³ Worst-case scenario assumed: impairment as soon as market value is below acquisition cost. Economic view – not fully comparable with IFRS figures.

Backup: Investments On- and off-balance-sheet reserves (gross)

Quarterly financial statements as at 31 March 2012 48

€m	31.12. 2009	31.12. 2010	31.3. 2011	30.6. 2011	30.9. 2011	31.12. 2011	31.3. 2012
Market value of investments				185,097 196,398 191,326 196,319 205,297 207,108 211,754
Total reserves	7,905	7,374	4,213	5,862	11,374	11,236	13,567
On-balance-sheet reserves
Fixed-interest securities	3,342	2,201	639	1,805	4,982	4,892	5,817
Non-fixed-interest securities	1,408	1,634	1,401	1,219	589	693	1,159
Other on-balance-sheet reserves1	233	249	255	244	249	250	284
Subtotal	4,983	4,084	2,295	3,268	5,820	5,835	7,260
Off-balance-sheet reserves
Real estate2	1,447	1,425	1,524	1,274	1,279	1,435	1,368
Loans and investments (held to maturity)	1,289	1,554	88	965	3,974	3,633	4,654
Associates and tangible assets	186	311	306	355	301	333	285
Subtotal	2,922	3,290	1,918	2,594	5,554	5,401	6,307
Reserve ratio (%)	4.3%	3.8%	2.2%	3.0%	5.5%	5.4%	6.4%

¹ Unrealised gains/losses from unconsolidated affiliated companies, valuation at equity and cash-flow hedging. ² Excluding reserves from owner-occupied property.

Backup: Investments On-balance-sheet reserves
€m		Change since 31.12.2011
Investments afs	6,976	1,391
Valuation at equity	76	4
Unconsolidated affiliated enterprises	147	4
Cash flow hedging	61	26
Total on-balance-sheet reserves (gross)	7,260	1,425
Provision for deferred premium refunds	–1,717	–839
Deferred tax	–1,324	–46
Minority interests	–14	–4
Consolidation and currency effects	–25	37
Shareholders' stake	4,180	573

¹ Excluding reserves for owner-occupied property.

Backup: Shareholder information Financial calendar
FINANCIAL CALENDAR
15 May 2012	Deutsche Bank "German, Swiss & Austrian Conference", Frankfurt
21 May 2012	Deutsche Bank "2012 Global Financial Services Investor Conference", New York
22–23 May 2012	Credit Suisse "West Coast Conference", San Francisco
23 May 2012	Autonomous "Rendez-Vous 2012", London
13 June 2012	Goldman Sachs "Annual Financials Conference", Brussels
7 August 2012	Interim report as at 30 June 2012
7 November 2012	Interim report as at 30 September 2012

For information, please contact Backup: Shareholder information

INVESTOR RELATIONS TEAM
Christian Becker-Hussong Head of Investor & Rating Agency Relations Tel.: +49 (89) 3891-3910 E-mail: cbecker-hussong@munichre.com	Ralf Kleinschroth Tel.: +49 (89) 3891-4559 E-mail: rkleinschroth@munichre.com	Thorsten Dzuba Tel.: +49 (89) 3891-8030 E-mail: tdzuba@munichre.com
Christine Franziszi Tel.: +49 (89) 3891-3875 E-mail: cfranziszi@munichre.com	Britta Hamberger Tel.: +49 (89) 3891-3504 E-mail: bhamberger@munichre.com	Andreas Silberhorn Tel.: +49 (89) 3891-3366 E-mail: asilberhorn@munichre.com
Dr. Alexander Becker Head of External Communication ERGO Tel.: +49 (211) 4937-1510 E-mail: alexander.becker@ergo.de	Andreas Hoffmann Tel.: +49 (211) 4937-1573 E-mail: andreas.hoffmann@ergo.de	Ingrid Grunwald Tel.: +49 (89) 3891-3517 E-mail: igrunwald@munichre.com

Münchener Rückversicherungs-Gesellschaft | Investor & Rating Agency Relations | Königinstraße 107 | 80802 München, Germany Fax: +49 (89) 3891-9888 | E-mail: IR@munichre.com | Internet: www.munichre.com