Muenchener Rueckversicherungs-Gesellschaft AG — Investor Presentation 2009

Aug 3, 2009

Munich Re Group Analysts' Lunch Seminar on Life Reinsurance

Global life reinsurance market is dominated by two players in a head-to-head situation – Munich Re life reinsurance represents more than a quarter of the reinsurance segment

Life reinsurance is a consistently profitable and less volatile core segment

Financial crisis opens up windows of opportunity for additional value creation

Solutions beyond traditional reinsurance ensure superior client access and acquisition of additional profitable business

Development of gross premiums written Munich Re to fully capitalise on growth of life reinsurance market

Competitive position Munich Re well positioned to capture full market potential

Integrated business model Life reinsurance essential pillar of increasing importance

¹Segmental share of gross premiums written (health reinsurance excluded).

²Gross premiums written before consolidation in 2008.Total after consolidation: €37.8bn.

Distribution of products Predominantly mortality risk

Steering philosophy Connection between MCEV earnings and IFRS result

Differences between MCEV and IFRS

Different reporting standards based on different methodologies

MCEV earnings based on long-term assumptions being subject to changes

IFRS results subject to short-term distortions (e.g. FX, capital markets, reserving)

MCEV earnings are a good indication for IFRS results under "normal" circumstances

MCEV most appropriately reflects the value of life business¹

Key figures Profitability adequately reflected in embedded value results

Embedded value results (€m)	2007	2008	Embedded value – expected drivers in 2009
EEV	6,662	6,116	EEV continues to be supported by low-interest environment (reduced effect from discounting)
VANB	277	356	Negative FX impact on EEV to be overcompensated by new business
Operating EEV earnings	701	618	Substantial VANB contribution of large block deals
Operating EEV return	11.8%	9.3%	Continued focus on new business profitability

Reinsurance solutions Finding the right access, moving closer to the customer

Type of service	Reinsurance solutions	Demand from primary insurer	MR's competitive advantage	Profitability
Traditional reinsurance solutions	Providing reinsurance capacity	Need for result smoothing; support in underwriting and product development is slightly declining	Capital strength, biometric excellence and international presence	Stable and relatively low risk-return profile
"Beyond traditional reinsurance"	Holistic asset liability solutions	Increasing – mainly from SMEs	Capital strength, biometric excellence and hedging expertise	Less stable and higher risk-return profile
	Capital relief transactions VIF financings	Usually high in financially distressed situations; growing importance through Solvency II	Capital strength, biometric excellence and strong market position	Less frequent block deal transactions with lower risk-return profile

Innovative solutions tailored to clients" needs are key to profitable growth

Key focus initiatives Building the foundation of our earnings guidance

Benefit from demographic developments

Continue profitable organic growth by taking advantage of changes in accounting standards (IFRS) and regulatory requirements (Solvency II)

Clear market leader in Canada and Germany; USA and Asia are main areas for future growth

Regional focus Capturing growth potential in global markets ¹

2 Providing asset-liability solutions Holistic ALM solutions for efficient asset protection

Financial guarantees embedded in life insurance offer substantial growth potential

Market fundamentals Impact of financial crisis

able to tap new profit pool

scale is not efficient

Business proposition of PI is sound

• Investment-guarantee market serves fundamental need of individuals for financial security
• Significant increase due to baby-boomer retirement within next 10 years

With ALM risk solutions, e.g. for VA providers, MR is

Large profit pool offers growth opportunity for RI

Hedging operation run by primary insurer on small

Banks are not able to cover actuarial and market risk

Reserve and regulatory relief is achieved

+

Primary insurance

• Recession may lower savings ratios
• Redesign of products to deal with high hedging costs and poorly designed product features will proceed apace
• High risk aversion of individuals fostering demand for guarantees

Reinsurance

• PI under pressure to transfer risk: awareness of necessity to hedge properly has significantly increased
• Competitors forced to leave the market
• Awareness of counterparty risk significantly increased
• Regulatory developments facilitating business potential

Risks are manageable
Strict underwriting policy prohibits reinsurance of ill-designed products	Market-consistent valuation of reinsurance liabilities is key to effective ALM	Hedging policy minimises exposure in all liquidly tradable factors
Risk appetite is clearly defined by limits set by the Risk Committee and monitored by the risk management	Daily monitoring of profit and loss and frequent back-testing of models detects possible weaknesses	Counterparty risks are mitigated by a strict collateralisation policy

Upgrade service offerings

3

Generating growth opportunities beside core business

Expanding business model and value proposition along the life insurance value chain

Product development	Underwriting, Processing/Admin	Claims management	Risk transfer
 Extensive biometric research activities with continued increase in market coverage  Intensive cooperation with clients to expand their business offerings	 Advancements in underwriting quality and efficiency through up-to date and flexible manual  Underwriting strength combined with automation of processes	 Optimising primary insurers claims management processes  Adding state-of-the-art legal and technical claims knowledge	 Increased demand for solutions to reinsure financial guarantees and embedded options, e.g. in variable annuities  Changed risk focus and increased number of annuitants drive demand for reinsuring longevity
Designing and pricing of new tailor-made products are internationally proven success factors	MIRA1 , allfinanz2	Training courses, auditing, setting standards	Holistic asset-liability solutions Solution for longevity risks

¹MIRA – Munich Re Internet Risk Assessor (underwriting manual).

²Underwriting automation (software solutions).

Demand for reinsurance solutions Increase in requests for capital relief deals ⁴

Primarily in the US, East Asia and Continental Europe

Strengthening capital base Noticeable increase in requests/quoting opportunities as from 4th quarter 2008 Growth financing Already first requests observable Pressure on capitalisation/ solvency levels due to … … reduced asset values/ asset impairments … reduced investment earnings … increased capital requirements reflecting higher volatility … need for capital increases to… … support the financing of acquisition of life blocks/portfolios … take-over of life insurance companies PI companies seek to improve their market position inducing the …

Demand could further increase with lower acquisition prices

Primary insurers need to find quick solutions to strengthen their capital base

Satisfaction of demand Reinsurance the preferred solution for capital relief ⁴

Reinsurance solutions provide many advantages		Achievements1
Immediate risk/solvency capital relief		Number of closed deals: 9
Capacity with high security		Expected total GPW of new business >€2bn p.a.
Specific requirements can be addressed in tailor-made transactions		VANB of new business in the low 3-digit million Euros
Provides a high degree of flexibility and can avoid negative publicity
Trust, based on long-term relationships		Still many deals in the pipeline due to deteriorating capitalisation
Deals fit perfectly with Munich Re"s risk appetite and strategy
Strengthening long-term client relationships	Transfer of mortality and morbidity risks	No assumption of investment risks	Meeting profitability requirements with attractive RoRaC
Capitalising on opportunities arising out of increasing need for reinsurance,

not jeopardising our solidity

1 Includes life and health business (life approx. 40%, health approx. 60%).

4 Example of block deal Transaction provides significant surplus relief

Simplified structure of a block deal in life reinsurance

Focused and differentiated approach to possible transactions

Summary Key takeaways

Munich Re Group Analysts' Lunch Seminar on Life Reinsurance

Shareholder information Financial calendar

FINANCIAL CALENDAR
4 August 2009	Interim report as at 30 June 2009; half-year press conference
5 November 2009	Interim report as at 30 September 2009

Shareholder information For information, please contact

MUNICH REINSURANCE
Christian Becker-Hussong Head of Investor & Rating Agency Relations Tel.: +49 (89) 3891-3910 E-mail: cbecker-hussong@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
Ralf Kleinschroth Tel.: +49 (89) 3891-4559 E-mail: rkleinschroth@munichre.com	Andreas Silberhorn Tel.: +49 (89) 3891-3366 E-mail: asilberhorn@munichre.com	Martin Unterstrasser Tel.: +49 (89) 3891-5215 E-mail: munterstrasser@munichre.com

ERGO
Dr. Alexander Becker	Mareike Berkling	Andreas Hoffmann
Head of External Communications Tel.: +49 (211) 4937-1510 E-mail: alexander.becker@ergo.com	Tel.: +49 (211) 4937-5077 E-mail: mareike.berkling@ergo.com	Tel.: +49 (211) 4937-1573 E-mail: andreas.hoffmann@ergo.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

Shareholder information 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.

Note regarding the presentation of the previous year's figures

• For the new reporting format in connection with the first-time application of IFRS 8 "Operating Segments" as at 1 January 2009, several prior-year figures have been adjusted in the income statement.
• For the sake of better comprehensibility and readability, we have refrained from adding the footnote "Previous year's figures adjusted owing to first-time application of IFRS 8" to every slide.
• For details and background information on IFRS 8, please read the presentation "How does Munich Re apply the accounting standard IFRS 8 "Operating Segments"?" on Munich Re's website (http://www.munichre.com/de/ir/contact_and_service/faq/default.aspx).