Muenchener Rueckversicherungs-Gesellschaft AG

Quarterly Report • Aug 12, 2024

Half-Year Financial Report 2024 Munich Re

Key figures (IFRS) ${ }^{1}$

Munich Re at a glance

		Q1-2 2024	Q1-2 2023	Change	Q2 2024	Q2 2023	Change
				$\%$			\%
Net result	€m	3,763	2,425	55.2	1,623	1,154	40.6
Thereof attributable to non-controlling interests	$\epsilon \mathrm{m}$	$-1$	$-3$	60.4	$-1$	1	-
Earnings per share	€	28,13	17.75	58.5	12,16	8.45	43.9
Return on equity (RoE) ${ }^{2}$	\%	24.3	17.0		20.3	15.8
Return on investment (RoI)	\%	3.2	2.0		2.6	1.1
					30.6.2024	31.12.2023
Share price	€				467.00	375.10	24.5
Munich Reinsurance Company's market capitalisation	€bn				62.5	51.2	22.0
Carrying amount per share	€				229.71	220.29	4.3
Investments	€m				221,459	218,462	1.4
Investments for unit-linked life insurance	$\epsilon \mathrm{m}$				8,937	8,280	7.9
Equity	$\epsilon \mathrm{m}$				30,695	29,772	3.1
Insurance contracts issued and reinsurance contracts held (net)	$\epsilon \mathrm{m}$				204,642	203,383	0.6
Balance sheet total	$\epsilon \mathrm{m}$				276,052	273,793	0.8
Number of staff					43,306	42,812	1.2

Reinsurance

	Q1-2 2024	Q1-2 2023	Change	Q2 2024	Q2 2023	Change
			$\%$			\%
Insurance revenue from insurance contracts issued	$\epsilon \mathrm{m}$	19,732	18,532	6.5	9,875	9,300
Total technical result - Life and health	$\epsilon \mathrm{m}$	1,204	644	86.8	617	325
Combined ratio - Property-casualty	\%	77.5	83.5		79.6	80.5
Investment result	$\epsilon \mathrm{m}$	1,814	1,109	63.6	743	262
Net result	$\epsilon \mathrm{m}$	3,227	1,955	65.1	1,339	904
Thereof: Reinsurance - Life and health	$\epsilon \mathrm{m}$	1,105	617	79.2	553	326
Thereof: Reinsurance - Property-casualty	$\epsilon \mathrm{m}$	2,122	1,338	58.6	786	578
Return on equity (RoE)	\%	24.9	16.8		19.9	14.9

ERGO

	Q1-2 2024	Q1-2 2023	Change	Q2 2024	Q2 2023	Change
			$\%$			\%
Insurance revenue from insurance contracts issued	$\epsilon \mathrm{m}$	10,282	9,916	3.7	5,078	4,875
Combined ratio - Property-casualty Germany	\%	86.4	84.7		88.4	88.1
Combined ratio - International	\%	90.6	91.6		91.7	88.1
Investment result	$\epsilon \mathrm{m}$	1,820	1,099	65.5	727	334
Net result	$\epsilon \mathrm{m}$	535	470	14.0	284	250
Thereof: Life and Health Germany	$\epsilon \mathrm{m}$	154	113	36.5	119	72
Thereof: Property-casualty Germany	$\epsilon \mathrm{m}$	170	229	$-25.9$	19	62
Thereof: International	$\epsilon \mathrm{m}$	211	128	65.7	146	116
Return on equity (RoE) ${ }^{2}$	\%	21.3	17.8		22.4	20.3

1 You can download this information as an Excel file; please refer to the Financial Supplement under www.munichre.com/results-reports.
2 Previous year's figures adjusted due to changes in "Retained earnings" and "Other reserves".

Interim management report of the Group	2
Business environment	2
Business performance of the Group and overview of investment performance	3
Business performance of the segments	6
Reinsurance - Life and health	6
Reinsurance - Property-casualty	7
ERGO Life and Health Germany	8
ERGO Property-casualty Germany	9
ERGO International	10
Prospects	11
Condensed interim consolidated financial statements	12
Consolidated balance sheet	12
Consolidated income statement	14
Consolidated statement of comprehensive income	16
Consolidated statement of changes in equity	18
Condensed consolidated cash flow statement	20
Selected notes to the consolidated financial statements	21
Basis of preparation	21
Changes in accounting policies and other adjustments	21
Consolidation	22
Segment disclosures	24
Notes to the consolidated balance sheet	35
Notes to the consolidated income statement	41
Notes to the financial instruments and fair value disclosures on assets and liabilities	43
Notes on insurance contracts	55
Other information	55
Review report	57
Responsibility statement	58

Due to rounding, there may be minor deviations in summations and in the calculation of percentages in this report.

This document is a translation of the original German version and is intended to be used for informational purposes only. While every effort has been made to ensure the accuracy and completeness of the translation, please note that the German original is binding.

Interim management report of the Group

Business environment

The global economy continued on its moderate growth trajectory in the first half of 2024. While previously strong growth in the United States tapered off slightly, the economy in the eurozone recovered from stagnation. The Chinese economy stabilised thanks in part to economic policy measures. The downward trend in inflation rates came to a halt in many industrialised nations. One reason was the sustained marked increase in service prices, mirroring strong wage growth. Furthermore, geopolitical tensions pushed energy prices up at times. Almost two years after it first tightened the monetary policy reins, the European Central Bank (ECB) cut its key rates for the first time in June following a substantial drop in inflationary pressure compared with last year. In addition, the ECB further reduced its securities holdings, as did the Federal Reserve (Fed) in the United States. The Fed left its target range for the federal funds rate, however, unchanged at $5.25 \%$ to $5.5 \%$, as it was not yet convinced that inflation was moving sustainably towards the two percent target. Fluctuations in bond yields were less pronounced in the reporting period than in the previous year; they were affected by inflation data and new expectations regarding monetary policy, among other factors. At the end of June, yields on ten-year government bonds in the US and Germany were up on the end of 2023. In a multi-year comparison, they remained at a high level. The gains made by populist parties in the EU elections and the announcement of new elections in France prompted many investors to increasingly pivot to the perceived safe haven of government bonds. The yield differential between many European government bonds and their German counterparts increased.

Yields on ten-year government bonds

$\%$	30.6 .2024	31.12 .2023
USA	4.4	3.9
Germany	2.5	2.0

Political uncertainty triggered hefty price losses on the European stock markets in June. As at 30 June, however, the EURO STOXX 50 was still trading 8\% higher than as at 1 January. In the US, on the other hand, stock market volatility was down year on year. At the end of June, the US Dow Jones Industrial Average was up 4\% on the level at the end of 2023.

Equity markets

	30.6 .2024	31.12 .2023
EURO STOXX 50	4,894	4,522
Dow Jones Industrial Average	39,119	37,690

With the exception of the still faltering Japanese yen, which lost $10 \%$ in value against the euro in the first half of 2024, fluctuations on the currency markets were minor. At the end of June, the US dollar and the British pound were higher against the euro compared with the end of 2023. The value of the Canadian dollar, on the other hand, was slightly lower. At $€ 0.93$, the average value of the US dollar in the first half of 2024 matched the average value for H1 2023. On average, the British pound was higher against the euro year on year. By contrast, the average value of the Canadian dollar was slightly lower and the value of the Japanese yen significantly lower than their prior-year values.

Business performance of the Group and overview of investment performance

Key figures

	Q1-2 2024	Q1-2 2023	Change	Q2 2024	Q2 2023	Change
			$\%$			\%
Insurance revenue from insurance
contracts issued	€m	30,014	28,448	5.5	14,953	14,175
Total technical result	€m	5,306	3,969	33.7	2,521	2,159
Investment result	€m	3,633	2,208	64.5	1,470	596
Currency result	€m	106	$-101$	-	$-70$	44
Investment result for unit-linked life insurance	€m	654	490	33.6	113	163
Operating result	€m	5,139	3,341	53.8	2,211	1,573
Taxes on income	€m	$-1,285$	$-832$	$-54.4$	$-538$	$-377$
Net result	€m	3,763	2,425	55.2	1,623	1,154
Return on equity (RoE) ${ }^{1}$
Group ${ }^{2}$	\%	24.3	17.0		20.3	15.8
Reinsurance	\%	24.9	16.8		19.9	14.9
ERGO ${ }^{3}$	\%	21.3	17.8		22.4	20.3
		30.6.2024	31.12.2023	Change
				\%
Equity	€m	30.7	29.8	3.1
Solvency II ratio ${ }^{3}$	\%	287	267

1 Further information on the RoE can be found in the $>$ Group Annual Report 2023 $>$ Combined management report $>$ Strategy and $>$ Tools of corporate management and strategic financial objectives; refer also to the $>$ Condensed interim consolidated financial statements $>$ Selected notes to the consolidated financial statements $>$ Segment disclosures $>$ Alternative performance measures.
2 Previous year's figures adjusted due to changes in "Retained earnings" and "Other reserves".
3 Does not include transitional measures or, as at 30 June 2024, any deduction for dividends for the financial year 2024 to be paid in 2025.

Insurance revenue from insurance contracts issued (insurance revenue) generated by the Group in the first half of the year rose year on year. This development is primarily due to organic growth in both reinsurance segments and at ERGO International, with currency translation effects having a somewhat negative impact.

Major-loss expenditure in property-casualty reinsurance amounted to $12.2 \%$ ( $12.8 \%$ ) of net insurance revenue, and was thus below the expected value of $14 \%$. We posted nominal losses in reinsurance of $€ 0.2 \mathrm{bn}$ related to the flooding in southern Germany. ERGO also posted losses of $€ 44 \mathrm{~m}$. In life and health reinsurance, partly due to positive experience adjustments and strong development from new business, we achieved a total technical result in the first halfyear that was above pro rata guidance. The total technical result in the ERGO field of business was roughly on a par with the same period of last year.

The investment result was up considerably year on year. In addition to higher regular income from fixed-interest investments, substantial gains from fair value changes particularly contributed to this increase. Changes in exchange rates during the first half of the year led to a positive currency result. The tax rate was $25.5 \%$ (25.5\%).

Thanks above all to a good net result, and despite the dividend payout in May, Group equity was higher at the end of the reporting period than at the beginning of the year.

Munich Re issued a subordinated bond with a volume of $€ 1.5$ bn in May. It matures on 26 May 2044 and may be called for early redemption from 2033. The bond pays a fixed rate of $4.25 \%$ p.a. until 26 May 2034.

The Group's debt leverage as at 30 June 2024 was 11.2\% $(9.2 \%)$, which is low by industry comparison.

Investment mix

	Carrying amounts		Unrealised gains/losses ${ }^{1}$		Fair values
	30.6.2024	31.12.2023	30.6.2024	31.12.2023	30.6.2024	31.12.2023
Non-financial investments
Investment property	9,704	9,384	3,406	3,379	13,110	12,763
Property, plant and equipment	494	511	129	122	623	633
Intangible assets	133	128	0	0	133	128
Biological assets	1,095	628	0	0	1,095	628
Inventories	0	0	0	0	0	0
Investments in affiliated companies, associates and joint ventures	7,061	6,895	2,830	2,724	9,864	9,621
	18,487	17,747	6,366	6,226	24,825	23,974
Financial investments
Instruments subject to equity risk	9,545	10,820	0	0	9,545	10,820
Instruments subject to interest-rate and credit risk	177,159	174,496	$-15,056$	$-12,313$	177,159	174,496
Alternative investments	16,268	15,400	$-690$	$-562$	16,268	15,400
	202,972	200,715	$-15,746$	$-12,876$	202,972	200,715
Total	221,459	218,462	$-9,380$	$-6,650$	227,797	224,689

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

The fair value of our investment portfolio increased in H1, largely due to cash inflows and currency developments. Our investment portfolio continues to be dominated by fixedinterest securities and is composed as follows:

Investment portfolio by economic category ${ }^{1}$
Total: €236bn (234bn)

Portfolio of interest-bearing securities

80\%	$(80 \%)$
13\%	$(12 \%)$
4\%	$(5 \%)$
3\%	$(3 \%)$

The portfolio of interest-bearing securities, accounting for $80 \%$, falls into the following economic categories:

	Government bonds ${ }^{1}$	$32 \%$	$(33 \%)$
	Pfandbriefs (covered bonds)/	$14 \%$	$(15 \%)$
	Mortgage loans
	Corporate bonds	$15 \%$	$(14 \%)$
	Emerging-market government bonds	$5 \%$	$(5 \%)$
	ABSs/MBSs ${ }^{2}$	$3 \%$	$(3 \%)$
	Fixed-income alternative investments	$4 \%$	$(4 \%)$
	Cash	$7 \%$	$(7 \%)$

1 Includes exclusively government bonds of industrialised countries and comprises other public-sector issuers and government-guaranteed bank bonds.
2 Asset-backed securities/mortgage-backed securities.

At the reporting date, $32 \%$ (33\%) of our investment portfolio was invested in government bonds from developed markets. Our new investments in the first six months were mostly in US and French government bonds. Reductions focused on our holdings of bonds from Canadian issuers. The vast majority of our government bonds continue to come from countries with a high credit rating. The share of government bonds from emerging markets constituted 5\% of our investment portfolio.

Our investment in corporate bonds at the reporting date amounted to $15 \%$ (14\%) of our investment portfolio. Broken down and expressed as a share of the overall portfolio, the investments in corporate bonds comprised 5\% (5\%) in financial undertakings, $8 \%$ (8\%) in corporate bonds from other sectors, and $2 \%$ (2\%) in high-yield bonds.

Non-fixed-income alternative investments accounted for $13 \%$ (12\%) of our investment portfolio at the reporting date; with regard to the overall portfolio, $7 \%$ (7\%) comprised property and $6 \%$ (6\%) equity securities.

Our equity portfolio decreased in the first half of the year, with the equity-backing ratio down to $3.9 \%$ (4.6\%). Including derivatives, the equity-backing ratio was $2.9 \%$ (3.7\%).

To hedge against inflation, we hold inflation-linked bonds totalling $€ 6.4 \mathrm{bn}$ ( 6.1 bn ) (at fair value). Real and financial assets such as shares, property, commodities, and investments in infrastructure, renewable energies and new technologies also serve to guard against inflation. Additionally, our investments in real assets have a positive diversification effect on the overall portfolio.

Investment result ${ }^{1}$

	Q1-2 2024	Return $^{2}$	Q1-2 2023	Return $^{2}$	Q2 2024	Q2 2023
	Km	\%	Km	\%	Km	Km
Regular income	4,087	3.6	3,364	3.1	2,281	1,763
Write-ups/write-downs	$-110$	$-0.1$	$-39$	0.0	$-62$	$-11$
Change in expected credit losses	$-21$	0.0	$-27$	0.0	$-46$	11
Gains/losses on disposal	$-201$	$-0.2$	$-229$	$-0.2$	$-145$	$-396$
Fair value changes	193	0.2	$-535$	$-0.5$	$-393$	$-610$
Other income/expenses	$-315$	$-0.3$	$-326$	$-0.3$	$-163$	$-162$
Total	3,633	3.2	2,208	2.0	1,470	596

1 Details of the result by type of investment can be found in the $>$ Condensed interim consolidated financial statements $>$ Selected notes to the consolidated financial statements $>$ Notes to the consolidated income statement.
2 Annualised return in \% p.a. on the average fair value of the investment portfolio at the quarterly reporting dates. The investment portfolio used to determine the annualised return (3.2\%) for the first six months is calculated as the mean of the fair values as at 31 December 2023 (€224,689m), 31 March 2024 (€226,219m) and 30 June 2024 ( $€ 227,797 \mathrm{~m})$.

Regular income for the first six months and for Q2 increased year on year, mainly on account of increased interest rates. The reinvestment yield for our fixed-interest investments averaged $4.7 \%(4.4 \%)$ for the period from 1 January to 30 June and $4.7 \%(4.3 \%)$ for the period from 1 April to 30 June.

The result from write-ups and write-downs was lower year on year. Depreciation of property and investments in renewable energies were two reasons for the negative result. The lower result from write-ups and write-downs was also attributable to impairment losses on property and participations accounted for using the equity method.

There was virtually no year-on-year change in the H1 result from the change in the expected credit losses.

The result from the disposal of investments that are not posted under fair value changes amounted to $-€ 201 \mathrm{~m}$ for the period from 1 January to 30 June, mainly attributable to losses from the disposal of fixed-interest securities.

The result from fair value changes improved considerably to $€ 193 \mathrm{~m}$. This can be attributed primarily to the positive result from equities amounting to $€ 644 \mathrm{~m}$, buoyed by stronger equity markets, especially in Q1. We also saw positive performance in private equity investments. Losses on fixed-interest securities of $€ 315 \mathrm{~m}$ as a consequence of higher interest rates were the main negative factor. A decrease of $€ 133 \mathrm{~m}$ in the fair value of property and losses on fixed-interest derivatives totalling $€ 199 \mathrm{~m}$ also negatively impacted performance.

Business performance of the segments

Reinsurance - Life and health

Key figures

	Q1-2 2024	Q1-2 2023	Change $\%$	Q2 2024	Q2 2023	Change $\%$
Insurance revenue from insurance
contracts issued	€m	5,987	5,340	12.1	2,961	2,606
Share of insurance revenue in reinsurance	$\%$	30.3	28.8		30.0	28.0
Total technical result	€m	1,204	644	86.8	617	325
Net financial result	€m	274	239	14.7	114	122
Thereof: Investment result	€m	350	272	28.7	164	101
Operating result	€m	1,409	805	75.0	702	414
Net result	€m	1,105	617	79.2	553	326

Insurance revenue

We write the majority of our business in non-euro currencies (around 95\%). As a result, the development of insurance revenue from insurance contracts issued (insurance revenue) is shaped to a considerable degree by exchangerate fluctuations. Exchange rates had a slightly negative impact on revenue development in the first half-year.

If exchange rates had remained unchanged, our insurance revenue would have increased by $12.4 \%$ compared with the first half of the previous year. The increase is mainly attributable to our business in North America and the United Kingdom, and can be traced back to the execution of large-volume transactions and the ongoing expansion of our longevity business.

The growth in our financially motivated reinsurance is not reflected in the insurance revenue, as the majority of new contracts are recognised in the result from insurancerelated financial instruments.

Result

Our total technical result showed a marked year-on-year improvement in the first six months, outperforming the pro rata expectations for this segment that we had communicated for the reporting year.

The total technical result comprises the insurance service result and the result from insurance-related financial instruments.

The insurance service result is substantially driven by the release of the contractual service margin and the risk adjustment for non-financial risk. New business developed very favourably and made a positive contribution to the result. This included, in particular, large-volume transactions in North America concluded before the turn of the year and in the first quarter of this year. Overall, claims development in the portfolio was better than expected, including mortality business in the US.

The greatest contributor to the result from insurancerelated financial instruments is that part of our financially motivated reinsurance that does not transfer significant insurance risk. The regular result from our portfolio developed very favourably, since contracts performed consistently as expected. The result presented here was influenced by changing economic parameters, in particular exchange rates. These had a positive effect in the first six months.

The investment result for the first half-year was considerably higher than in H1 2023, with Q2 in particular showing a strong increase. The increase in the first half of the year was mainly driven by higher regular income attributable to ongoing reinvestments with higher interest rates. In addition, losses on the disposal of fixed-interest securities decreased and the result from fair value changes increased year on year.

Reinsurance - Property-casualty

Key figures

	Q1-2 2024	Q1-2 2023	Change	Q2 2024	Q2 2023	Change
			$\%$			$\%$
Insurance revenue from insurance
contracts issued	€m	13,745	13,192	4.2	6,914	6,695
Share of insurance revenue in reinsurance	\%	69.7	71.2		70.0	72.0
Loss ratio	\%	61.9	69.1		63.7	66.1
	Percentage points	12.2	12.8		14.4	9.3
Expense ratio	\%	15.6	14.4		15.9	14.4
Combined ratio	\%	77.5	83.5		79.6	80.5
Total technical result	€m	2,988	2,164	38.1	1,372	1,236
Net financial result	€m	453	111	308.3	$-39$	$-215$
Thereof: Investment result	€m	1,463	837	74.9	579	160
Operating result	€m	3,030	1,884	60.8	1,145	808
Net result	€m	2,122	1,338	58.6	786	578

Insurance revenue

The increase in insurance revenue from insurance contracts issued (insurance revenue) was mainly attributable to new business and the expansion of existing client relationships. Changes in the value of the euro against other currencies had a slightly negative effect on insurance revenue compared with H1 2023. If exchange rates had remained unchanged, insurance revenue would have seen a year-on-year increase of $4.8 \%$ for the first six months and $3.0 \%$ for Q2.

In the reinsurance renewals as at 1 January 2024, Munich Re increased its insurance revenue to $€ 15.7 \mathrm{bn}(+3.5 \%)$. Attractive business relationships arose from the expansion of existing client relationships as well as new business. We were also prepared to discontinue business that no longer met our expectations with regard to pricing or conditions. It was possible to maintain the high quality of our portfolio thanks to stable contractual terms and conditions. Around twothirds of non-life reinsurance treaty business was renewed - with a focus on Europe, the US and global business. Price development was stable overall, and for the most part more than compensated for the higher loss estimates in some areas, which were primarily attributable to inflation and other loss trends. Primary insurance prices also rose in many markets, with Munich Re benefiting as regards proportional reinsurance contracts. Overall, the high price level for Munich Re's portfolio was maintained with a $0.3 \%$ increase.

In the reinsurance renewals as at 1 April 2024, Munich Re was able to increase its insurance revenue to $€ 2.6 \mathrm{bn}(+6.1 \%)$. The company selectively exploited the ongoing favourable market conditions to expand attractive business, with growth opportunities being realised particularly in India, Latin America and Europe. These involved the expansion of existing client relationships as well as new business. At the same time, we discontinued business that was no longer appealing. Once again, price development was stable overall, and for the most part more than compensated for the higher loss estimates in some areas, which were primarily attributable to inflation and other loss trends. Overall, the high price level of Munich Re's portfolio was practically unchanged, with a decrease of just $0.7 \%$. When adjusted for portfolio diversification effects, rates rose by $0.6 \%$.

Result

The total technical result increased in the first half of the year and in Q2. The year-on-year increase is mainly attributable to a lower combined ratio. From January to June, we posted major-loss expenditure totalling $€ 1,608 \mathrm{~m}$ ( $1,635 \mathrm{~m}$ ), of which $€ 957 \mathrm{~m}$ ( 600 m ) was attributable to Q2, in each case after retrocessions to reinsurers and before tax. These amounts include gains and losses from the run-off of major claims from previous years, and were equivalent to $12.2 \%$ of net insurance revenue in the first half of the year and $14.4 \%$ in Q2. Major-loss expenditure was below the expected value of $14 \%$ in the first half of the year, and only slightly higher than expected in Q2.

Claims costs from natural catastrophes amounted to $€ 1,078 \mathrm{~m}(1,315 \mathrm{~m})$ for the first half of the year, including $€ 846 \mathrm{~m}(445 \mathrm{~m})$ for Q2. The highest expenditure for natural catastrophes in the first half of the year was attributable to the flooding in southern Germany at the beginning of June, with a nominal amount of $€ 0.2 \mathrm{bn}$. Expenditure for man-made losses came to $€ 530 \mathrm{~m}(320 \mathrm{~m})$ for the first half of the year. $€ 110 \mathrm{~m}(155 \mathrm{~m})$ was attributable to Q2. The aforementioned major-loss figures take account of the effects from discounting and risk adjustment.

In addition to the comprehensive reassessment of provisions for basic losses that we carry out primarily towards the end of the year, we also perform detailed quarterly analyses of the claims notifications we receive. As claims notifications remained appreciably below the expected level, we made reserve releases in the first halfyear. After adjustments for discounting effects, these releases amounted to $€ 660 \mathrm{~m}$, or $5.0 \%$ of net insurance revenue. We still aim to set the amount of provisions for
newly emerging claims at the top end of the estimation range, so that risks are adequately taken into account and profits from the release of a portion of these reserves are possible following positive claims development.

The combined ratio amounted to $77.5 \%(83.5 \%)$ of net insurance revenue for the first six months of the year and $79.6 \%(80.5 \%)$ for Q2. The figure for the first half-year is thus significantly lower than the $82 \%$ target we projected at the beginning of the year for the whole of 2024.

The investment result for the first half-year was significantly higher than in the same period last year, with Q2 in particular showing a strong increase. The increase was mainly driven by higher regular income attributable to ongoing reinvestments with higher interest rates. In addition, losses on the disposal of fixed-interest securities decreased and the result from fair value changes increased year on year, largely owing to an improved result from derivatives.

ERGO Life and Health Germany

Key figures

	Q1-2 2024	Q1-2 2023	Change $\%$	Q2 2024	Q2 2023	Change $\%$
Insurance revenue from insurance
contracts issued	€m	4,946	4,916	0.6	2,413	2,354
Share of insurance revenue at ERGO	\%	48.1	49.6		47.5	48.3
Total technical result	€m	467	543	$-14.0$	241	285
Net financial result	€m	$-21$	$-69$	69.5	$-9$	$-11$
Thereof: Investment result	€m	1,422	813	74.8	514	186
Operating result	€m	161	164	$-1.5$	116	110
Net result	€m	154	113	36.5	119	72

Insurance revenue

The Digital Ventures unit was transferred to the Health Germany division within the ERGO Life and Health Germany segment at the beginning of 2024. As a result, we will in future report only on the Life Germany and Health Germany divisions within this segment.

In the first half of the year and in Q2, insurance revenue from insurance contracts issued (insurance revenue) exceeded the level posted in the respective periods last year. The positive development in long-term and shortterm health business in the Health Germany division was a material aspect of growth in the first half-year.

In the Life Germany division, insurance revenue for the first half-year totalled $€ 1,421 \mathrm{~m}(1,472 \mathrm{~m})$ - a decrease of $3.5 \%$. Insurance revenue in Q2 came to $€ 653 \mathrm{~m}(624 \mathrm{~m})$. The negative development in the first half of the year was due in particular to a lower release of the contractual service margin, which was in line with expectations.

In the Health Germany division, insurance revenue grew by $17.9 \%$ to $€ 3,524 \mathrm{~m}(2,990 \mathrm{~m})$ in the first six months, with Q2 revenue totalling $€ 1,761 \mathrm{~m}(1,509 \mathrm{~m})$. We achieved growth in both long-term and short-term health business. This growth was also due in part to the above-mentioned discontinuation and transfer of the Digital Ventures unit.

Result

The total technical result generated in the first half-year and in Q2 decreased compared with the same periods last year. Compared with H1 2023, this was due in particular to a lower release of the contractual service margin, which was in line with expectations. In addition, the contribution from short-term health business to the total technical result was lower than in H1 2023. The total technical result also includes the result from intra-Group interest-rate reinsurance, which is offset in the net financial result. This interest-rate reinsurance had a negative effect on the total technical result. The total technical result in Q2 was, as expected, also affected by the lower release of the contractual service margin.

The net financial result for H 1 and for Q 2 was up year on year. Growth in the first half-year was driven in part by the compensating effect from the above-mentioned development of intra-Group interest-rate reinsurance, and by a positive one-off effect from the initial consolidation of Storebrand Helseforsikring AS (SBH), Lysaker. ${ }^{1}$ The year-
on-year increase in the investment result for the first six months was attributable in part to higher regular income and gains from derivatives. The investment result, the investment result for unit-linked life insurance, and the currency result were for the most part offset by net insurance finance income/expenses within the net financial result.

ERGO Property-casualty Germany

	Q1-2 2024	Q1-2 2023	Change	Q2 2024	Q2 2023	Change
			$\%$			$\%$
Insurance revenue from insurance
contracts issued	€m	2,319	2,246	3.2	1,170	1,129
Share of insurance revenue at ERGO	\%	22.6	22.7		23.0	23.2
Loss ratio	\%	59.1	58.7		60.6	63.6
Expense ratio	\%	27.3	25.9		27.8	24.6
Combined ratio	\%	86.4	84.7		88.4	88.1
Total technical result	€m	308	338	$-8.7$	131	132
Net financial result	€m	86	77	12.9	12	25
Thereof: Investment result	€m	147	105	39.5	46	51
Operating result	€m	279	314	$-11.4$	79	103
Net result	€m	170	229	$-25.9$	19	62

Insurance revenue

Compared with the first half of the previous year, insurance revenue from insurance contracts issued (insurance revenue) rose. This improvement was particularly due to growth in fire and property insurance, and in motor insurance. Insurance revenue in Q2 was also higher year on year.

Result

Compared with the first half of the previous year, the total technical result declined but remained stable in Q2. The development compared with H1 2023 was due in particular to higher major losses, especially those from natural catastrophes. In addition, basic losses were low in the first half of 2023.

In the first half of the year, the combined ratio was up 1.7 percentage points compared with H1 2023, which was attributable to the above-mentioned low basic losses and major losses in H1 2023. In Q2, major losses due to natural catastrophes were higher than expected, which was offset by lower man-made major losses. In southern Germany, losses due to flooding amounted to €44m.

The net financial result was higher in H1 2024 than in H1 2023, but down year on year in Q2. The year-on-year increase in the H1 investment result, due in particular to higher regular income, more than offset lower H1 net insurance finance income/expenses. In Q2, the net financial result was affected by a slightly lower investment result and lower net insurance finance income/expenses.

[^0]
[^0]: 1 Further information on SBH can be found in the $>$ Condensed interim consolidated financial statements $>$ Selected notes to the consolidated financial statements $>$ Consolidation $>$ Changes in the consolidated group.

ERGO International

Key figures

	Q1-2 2024	Q1-2 2023	Change	Q2 2024	Q2 2023	Change
			$\%$			$\%$
Insurance revenue from insurance
contracts issued	€m	3,017	2,753	9.6	1,495	1,391
Share of insurance revenue at ERGO	\%	29.3	27.8		29.4	28.5
Loss ratio	\%	61.4	60.6		62.3	57.0
Expense ratio	\%	29.2	31.0		29.4	31.1
Combined ratio	\%	90.6	91.6		91.7	88.1
Total technical result	€m	339	279	21.5	160	182
Net financial result	€m	70	7	904.0	79	20
Thereof: Investment result	€m	251	181	38.9	168	98
Operating result	€m	260	173	49.9	169	137
Net result	€m	211	128	65.7	146	116

Insurance revenue

We generated significantly more insurance revenue from insurance contracts issued (insurance revenue) year on year in the first six months and in Q2, due especially to strong growth in property-casualty business in Poland and Thailand, and in health business in Spain. This growth more than offset the effects of selling DAS UK Holdings Limited, Bedwas, its subsidiaries, and D.A.S. Jogvédelmi Biztosíto Részvénytársaság, Budapest. Adjusted for the effects of transactions and positive currency translation effects, insurance revenue in the segment rose by $10.0 \%$ compared with H1 2023.

In international property-casualty business, insurance revenue grew by $12.2 \%$ to $€ 1,889 \mathrm{~m}(1,683 \mathrm{~m})$ in the first six months and by $8.2 \%$ to $€ 937 \mathrm{~m}(866 \mathrm{~m})$ in Q2. We achieved half-year improvements in Poland, Thailand and the Baltic states compared to 2023. They more than offset the abovementioned sales.

In international health business, insurance revenue for the first half-year amounted to $€ 916 \mathrm{~m}(842 \mathrm{~m})$, an $8.7 \%$ increase compared with the same period last year. This is attributable to, among other factors, growth in Spain. In Q2, insurance revenue came to $€ 460 \mathrm{~m}(428 \mathrm{~m})$.

In international life insurance business, insurance revenue amounted to $€ 213 \mathrm{~m}(228 \mathrm{~m})$ in the first half-year, with Q2 accounting for $€ 98 \mathrm{~m}(97 \mathrm{~m})$. While revenue was substantially higher in Poland, it was lower in the Baltic states, Belgium and Austria.

Result

The total technical result was significantly higher than in H1 2023, but was down year on year in Q2. The positive development in the first half of the year was, among other factors, due to profitable growth and to favourable claims trends in property-casualty insurance in Poland and the Baltic states. A higher CSM release in life business and long-term health business also had a positive effect on the total technical result compared with H1 2023. The year-onyear change in the total technical result in Q2 was shaped by higher losses in health business in Spain, in propertycasualty business in Austria, and in international legal protection insurance business. In the first six months of the year, the combined ratio in international property-casualty business (including travel insurance and short-term health business) was 1.0 percentage point lower than in H1 2023, particularly due to the good claims trends in Poland and the Baltic states. In Q2, the combined ratio was 3.6 percentage points higher than the previous year's very good figure.

The net financial result for the first half-year was significantly higher year on year. This was chiefly due to a higher investment result, which was especially driven by higher regular income, and by the initial consolidation of Storebrand Helseforsikring AS (SBH), Lysaker. ${ }^{1}$ The net financial result for Q2 was also significantly higher year on year, which was also due in part to the higher investment result.

[^0]
[^0]: 1 Further information on SBH can be found in the $>$ Condensed interim consolidated financial statements $>$ Selected notes to the consolidated financial statements $>$ Consolidation $>$ Changes in the consolidated group.

Prospects

This section contains forward-looking statements that are based on current assumptions and forecasts of the
management of Munich Re. We do not accept any responsibility or liability in the event that they are not realised in part or in full.

Outlook for the Munich Re Group 2024

		As at 30.6.2024	From Annual Report 2023
Insurance revenue from insurance contracts issued	€bn	59	59
Total technical result - Life and health reinsurance	€bn	1.45	1.45
Combined ratio - Property-casualty reinsurance	\%	82	82
Combined ratio - ERGO Property-casualty Germany	\%	87	87
Combined ratio - ERGO International	\%	90	90
Return on investment	\%	over 2.8	over 2.8
Net result	€bn	5.0	5.0
Economic earnings	€bn	over 5.0	over 5.0

All forecasts and targets face increased uncertainty owing to fragile macroeconomic developments and volatile capital markets. As always, the projections are subject to major losses remaining 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.

At 1 July 2024, a volume of around $€ 3.7 \mathrm{bn}$, or around $17 \%$ of the contract portfolio, was up for renewal in the propertycasualty reinsurance segment. About 29\% of this was from North America, 17\% from Latin America and 31\% from worldwide business. These renewals represented a significant percentage of natural catastrophe business - around $32 \%$ of premium worldwide. Premium volume fell by approximately $5.4 \%$ to around $€ 3.5 \mathrm{bn}$. The decline was attributable to casualty insurance; by contrast, an increase was recorded in property insurance and specialty business. Price development was stable overall, and for the most part more than compensated for the higher loss estimates in some areas, which were primarily attributable to inflation and other loss trends. Primary insurance prices also increased in many markets, with Munich Re benefiting as regards proportional reinsurance contracts. Overall, the high price level of Munich Re's portfolio rose slightly by $0.6 \%$. This figure is, as always, risk-adjusted. In other words, price increases are offset if they are associated with increased risk and, consequently, elevated loss expectations.

At the end of a successful first six months, Munich Re remains confident in its outlook for further positive business opportunities in the second half of 2024, although the usual uncertainty remains regarding exchange rate and capital market developments, as well as further majorloss experience. The targets communicated for 2024 in Munich Re's Group Annual Report 2023 and in the Quarterly Statement for Q1/2024 are thus unchanged. Accordingly, Munich Re is still aiming for a net result of $€ 5.0$ bn for the 2024 financial year. The probability of achieving or even exceeding this target has increased further given the strong half-year result.

The statements relating to opportunities and risks as presented in the Munich Re Group Annual Report 2023 apply unchanged. Munich Re continues to enjoy a very solid capital base, and the solvency ratio (without the application of transitional measures) lies above the communicated optimal range of 175-220\%.

Condensed interim consolidated financial statements

Consolidated balance sheet as at 30 June 2024

Assets

			30.6.2024	31.12.2023		Change
						\%
A. Intangible assets
I.	Goodwill		3,386		3,184	203
II.	Other intangible assets		840		900	$-60$
				4,227	4,084	143
B. Reinsurance contracts held that are assets				4,280	4,014	266
C. Insurance contracts issued that are assets				6,608	7,193	$-585$
D. Investments
I.	Non-financial investments
	1.	Investment property	9,704			9,384
	2.	Property, plant and equipment	494			511
	3.	Intangible assets	133			128
	4.	Biological assets	1,095			828
	5.	Inventories	0			0
	6.	Investments in affiliated companies, associates and joint ventures	7,061			6,895
		Thereof:
		Associates and joint ventures accounted for using the equity method	6,536
					6,409	127
			18,487		17,747	740
II.	Financial investments		202,972		200,715	2,256
				221,459	218,462	2,996
E. Investments for unit-linked life insurance				8,937	8,280	657
F. Insurance-related financial instruments				9,541	9,872	$-330$
G. Receivables
I.	Current tax receivables		1,620		1,920	$-299$
II.	Financial receivables		3,899		3,841	57
III.	Other receivables		1,598		1,382	216
				7,117	7,143	$-26$
H. Cash and cash equivalents				5,540	5,595	$-55$
I. Deferred tax assets				2,654	2,743	$-89$
J. Other assets				5,634	5,962	$-328$
K. Non-current assets held for sale				55	446	$-391$
Total assets				276,052	273,793	2,259

Consolidated income statement
from 1 January to 30 June 2024

Consolidated income statement
from 1 April to 30 June 2024

Consolidated statement of comprehensive income ${ }^{1}$ from 1 January to 30 June 2024

	Q1-2 2024	Q1-2 2023
Net result	3,762	2,425
Currency translation
Gains (losses) recognised in equity	485	$-288$
Recognised in profit or loss	0	0
Unrealised gains and losses on financial investments
Gains (losses) recognised in equity	$-2,301$	734
Recognised in profit or loss	301	546
Change resulting from cash flow hedges
Gains (losses) recognised in equity	$-1$	1
Recognised in profit or loss	0	0
Change resulting from equity method measurement
Gains (losses) recognised in equity	22	13
Recognised in profit or loss	0	0
Change resulting from reinsurance contracts held
Gains (losses) recognised in equity	$-196$	$-805$
Recognised in profit or loss	0	0
Change resulting from insurance contracts issued
Gains (losses) recognised in equity	1,371	43
Recognised in profit or loss	0	0
I. Items where income and expenses recognised in other comprehensive income are reclassified to profit or loss	$-318$	243
Remeasurements of defined benefit plans	97	23
II. Items where income and expenses recognised in other comprehensive income are not reclassified to profit or loss	97	23
Income and expenses recognised in other comprehensive income (I+II)	$-221$	266
Total comprehensive income	3,541	2,691
Thereof:
Attributable to Munich Reinsurance Company equity holders	3,545	2,694
Attributable to non-controlling interests	$-4$	$-3$

1 Previous year's figure adjusted for gains and losses recognised in equity resulting from equity method measurement.

Consolidated statement of comprehensive income ${ }^{1}$ from 1 April to 30 June 2024

Consolidated statement of changes in equity ${ }^{1}$

Issued capital Capital reserve

Km
Balance at 1.1.2023	577	6,845
Allocation to retained earnings	0	0
Net result	0	0
Income and expenses recognised in other comprehensive income	0	0
Currency translation	0	0
Unrealised gains and losses on financial investments	0	0
Hedging of option contracts - cost of hedging	0	0
Hedging of forward contracts - cost of hedging	0	0
Change resulting from cash flow hedges	0	0
Change resulting from equity method measurement	0	0
Change resulting from reinsurance contracts held	0	0
Change resulting from insurance contracts issued	0	0
Remeasurement of defined benefit plans	0	0
Total comprehensive income	$\mathbf{0}$	$\mathbf{0}$
Other changes	0	0
Dividend payments	0	0
Purchase and retirement of own shares	9	0
Balance at 30.6.2023	$\mathbf{5 8 6}$	$\mathbf{6 , 8 4 5}$
Balance at 1.1.2024	$\mathbf{5 8 0}$	$\mathbf{6 , 8 4 5}$
Allocation to retained earnings	0	0
Net result	0	0
Income and expenses recognised in other comprehensive income	0	0
Currency translation	0	0
Unrealised gains and losses on financial investments	0	0
Change resulting from cash flow hedges	0	0
Change resulting from equity method measurement	0	0
Change resulting from reinsurance contracts held	0	0
Change resulting from insurance contracts issued	0	0
Remeasurement of defined benefit plans	0	0
Total comprehensive income	$\mathbf{0}$	$\mathbf{0}$
Other changes	0	0
Dividend payments	0	0
Purchase and retirement of own shares	5	0
Balance at 30.6.2024	$\mathbf{5 8 5}$	$\mathbf{6 , 8 4 5}$

1 Previous year's figures adjusted for "Retained earnings" and "Other reserves" as at 1 January 2023 and 30 June 2023.

Condensed consolidated cash flow statement from 1 January to 30 June 2024

6 m	Q1-2 2024	Q1-2 2023
Net result	3,763	2,425
Net change in reinsurance contracts held	$-5$	$-17$
Net change in insurance contracts issued	398	57
Change in non-financial investments	$-523$	$-906$
Change in financial investments	$-3,492$	$-508$
Change in investments for unit-linked life insurance	$-46$	$-40$
Change in insurance-related financial instruments	231	106
Change in receivables and liabilities (excluding bonds and notes issued and liabilities to credit institutions)	$-976$	703
Change in other provisions	$-98$	$-20$
Change in other balance sheet items	$-11$	$-961$
Fair value changes recognised in profit or loss	1,606	1,361
Depreciation/amortisation, impairment losses, reversals of impairment losses, and changes in expected credit losses	171	94
Gains/losses resulting from the disposal of consolidated subsidiaries, other intangible assets, and property, plant and equipment	21	6
Other non-cash income and expenses	222	$-102$
I. Cash flows from operating activities	1,260	2,198
Inflows from losing control of consolidated subsidiaries	49	3
Outflows from obtaining control of consolidated subsidiaries	$-340$	$-49$
Inflows from the sale of other intangible assets	62	1
Outflows from the acquisition of other intangible assets	$-68$	$-93$
Inflows from the sale of property, plant and equipment	7	25
Outflows from the acquisition of property, plant and equipment	$-80$	$-48$
Inflows and outflows from other investing activities	$-1$	4
II. Cash flows from investing activities	$-370$	$-157$
Inflows from increases in capital and from non-controlling interests	0	0
Dividend payments	$-2,006$	$-1,583$
Purchase of own shares	$-643$	$-496$
Inflows from the issue of subordinated liabilities	1,487	0
Outflows from interest and the redemption of subordinated liabilities	$-102$	$-100$
Inflows and outflows from other financing activities	262	$-118$
III. Cash flows from financing activities	$-1,002$	$-2,298$
Cash flows for the period $0+0+10$	$-112$	$-256$
Effect of exchange-rate changes on cash and cash equivalents	58	$-313$
Cash at 1 January	5,595	6,439
Cash at 30 June	5,541	5,869
Thereof:
Cash not attributable to disposal group	5,540	5,845
Cash attributable to disposal group	1	25

1 Cash mainly comprises cash at banks.

Selected notes to the consolidated financial statements

Basis of preparation

Application of International Financial Reporting Standards (IFRSs)

The condensed interim consolidated financial statements as at 30 June 2024 are consistent with IAS 34, Interim Financial Reporting, and have been prepared in accordance with International Financial Reporting Standards (IFRSs) as applicable in the European Union. We have complied with all new and amended IFRSs and interpretations from the IFRS Interpretations Committee that Munich Re was first required to apply from 1 January 2024. For unchanged IFRSs, the same principles of recognition, measurement, consolidation and disclosure have been applied as in our consolidated financial statements as at 31 December 2023.

Presentation of figures

Munich Re's presentation currency is the euro (€). Amounts are rounded to million euros. As a result, there may be minor deviations in totals and percentages. Figures in brackets refer to the comparative period. We only add plus or minus signs where it is not clear from the context whether the amount is an expense/outflow or income/inflow.

Use of judgements and estimates in recognition and measurement

In preparing the condensed interim consolidated financial statements, preparers must use their judgement in applying accounting policies, and make certain estimates and assumptions. The significant judgements and the items subject to estimation uncertainty match those set out in the 2023 consolidated financial statements.

Changes in accounting policies and other adjustments

IFRSs required to be applied for the first time

As from financial year 2024, application of the following amended IFRSs is mandatory for the first time:

• Amendments to IAS 1, Presentation of Financial Statements - Classification of Liabilities as Current or Non-current (rev. 1/2020); Deferral of Effective Date of these Amendments (rev. 7/2020)
• Amendments to IAS 1, Presentation of Financial Statements (rev. 10/2022) - Non-current Liabilities with Covenants
• Amendments to IAS 7, Statement of Cash Flows, and to IFRS 7, Financial Instruments: Disclosures (rev. 5/2023) - Supplier Finance Arrangements
• Amendments to IFRS 16, Leases (rev. 9/2022) - Lease Liability in a Sale and Leaseback

The amendments listed above either have no significance or are of minor significance for Munich Re.

New standards and amendments to standards that are not yet effective

Unless otherwise stated, Munich Re intends to initially apply all new standards or amendments to standards that are not yet effective as at the mandatory effective date for entities whose registered office is in the European Union. The IASB has published the following standards and amendments to standards that have not yet been adopted into European law:

• Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates (rev. 8/2023) - Lack of Exchangeability
• Amendments to IFRS 9, Financial Instruments, and to IFRS 7, Financial Instruments: Disclosures (rev. 5/2024) - Amendments to the Classification and Measurement of Financial Instruments
• Amendments published as part of the "Annual Improvements to IFRS 11 - Volume 11" project (rev. 7/2024): Amendments to IFRS 1, First-time Adoption of International Financial Reporting Standards, IFRS 7, Financial Instruments: Disclosures, IFRS 9, Financial Instruments, IFRS 10, Consolidated Financial Statements, IAS 7, Statement of Cash Flows
• IFRS 18, Presentation and Disclosure in Financial Statements (4/2024)
• IFRS 19, Subsidiaries without Public Accountability: Disclosures (5/2024)

The amendments to IAS 21 will enter into force in 2025, with the amendments to IFRS 9 and IFRS 7, as well as those from the "Annual Improvements to IFRS 11 - Volume 11" project, coming into force in 2026. IFRS 18 and IFRS 19 will enter into force in 2027.

The impact that IFRS 18 will have on Munich Re is currently being investigated. Based on a preliminary assessment, adjustments are expected to be made to the structure of the consolidated income statement and the consolidated cash flow statement. Additional disclosures will also have to be made in the notes to the financial statements. All of the other standards and amendments listed above are expected either to have no significance or to be of minor significance for Munich Re.

Other information regarding the Half-Year Financial Report

The methodology used to take account of inflation in our estimates of insurance liabilities has remained unchanged compared to the 2023 consolidated financial statements.

As regards the importance of climate risks, the information provided in the Group Annual Report 2023 continues to apply.

The Organisation for Economic Co-operation and Development (OECD) has published model rules on Pillar Two - Global Minimum Tax. These have been transposed into local tax law in some of the countries where Munich Re does business. Munich Re observes and complies with the legal changes. The regulations came into effect in Germany on 1 January 2024. Due to the new requirements of global minimum taxation, the IASB adopted amendments to IAS 12 in May 2023, including a mandatory exemption from the obligation to recognise deferred tax assets and liabilities in connection with Pillar Two. The effective tax rates in the majority of countries in which the Group does business are over $15 \%$. In several countries we expect additional tax expenditure that, from the Group's perspective, will probably be immaterial. For Munich Re, any material impact on the effective tax rate is unlikely.

Consolidation

Changes in the consolidated group

Munich Re obtained control of Nam Seng Insurance Public Co., Ltd. (NSI), Bangkok, in the 2023 financial year. At 31 December 2023, the valuation of NSI's net assets related to insurance business was still provisional. The valuation of NSI's net assets was completed in Q1 2024. Unlike the provisional valuation as at 31 December 2023, the completed valuation resulted in a negative consolidation difference of $€ 1 \mathrm{~m}$, which was released directly to profit or loss and recognised in "Other operating income".

On 31 January 2024 - via its subsidiaries TS Texas II LP, Wilmington, Delaware, and TS Louisiana II LP, Wilmington, Delaware - Munich Re acquired 44,000 hectares of forest in Texas and Louisiana from an institutional investor and concluded a forest management contract. The forests will be managed professionally and sustainably so as to ensure long-term cash inflows for Munich Re by means of logging and systematic reforestation. The purchase price for the forest properties totalled $€ 230 \mathrm{~m}: € 117 \mathrm{~m}$ for TS Texas II LP and $€ 113 \mathrm{~m}$ for TS Louisiana II LP, settled in cash. The fair values of the assets and liabilities at the acquisition date comprised non-financial investments of $€ 230 \mathrm{~m}$, of which $€ 220 \mathrm{~m}$ was attributable to biological assets and properties. No contingent liabilities existed at the acquisition date.

The sale of DAS UK Holdings Limited, Bedwas, together with its subsidiaries DAS Services Limited, DAS Legal Expenses Insurance Company Limited and DAS Law Limited, was also completed in Q1 2024.

On 2 April 2024, via its subsidiary ERGO International AG, Düsseldorf, Munich Re acquired an additional 50\% of the voting shares in Storebrand Helseforsikring AS (SBH), Lysaker. Munich Re thereby increased its total shareholding to $100 \%$, and thus obtained control of SBH. SBH had been a 50/50 joint venture between ERGO and Storebrand ASA, Lysaker. The purchase price for the additional 50\% shareholding amounted to $€ 112 \mathrm{~m}$ and was settled in cash.

SBH is a leading provider of health insurance in Norway and Sweden. The stable and profitable health insurance markets in Scandinavia and elsewhere are a priority in ERGO's international growth strategy. By acquiring the other 50\% share from its former joint venture partner and leveraging an exclusive, long-term sales alliance, ERGO is poised to further expand its presence and competitive edge in the Scandinavian market.

The fair value of Munich Re's equity interest in SBH immediately prior to the acquisition was $€ 112 \mathrm{~m}$. A profit of $€ 89 \mathrm{~m}$ from the remeasurement of this interest was recognised in the investment result. The transaction resulted in provisional goodwill of $€ 157 \mathrm{~m}$ and intangible assets amounting to $€ 35 \mathrm{~m}$. The goodwill is based on expected synergies and growth attributable to the bundling of resources and know-how for ERGO's activities in the Nordic countries.

The valuation of net assets was still provisional at the reporting date.

The provisional fair values of SBH's assets and liabilities at the acquisition date were as follows: investments of $€ 75 \mathrm{~m}$; cash at banks, cheques and cash in hand of $€ 4 \mathrm{~m}$; receivables of $€ 36 \mathrm{~m}$; other asset items of $€ 1 \mathrm{~m}$; insurance liabilities and other liabilities of $€ 75 \mathrm{~m}$; and other liability items of $€ 2 \mathrm{~m}$. The fair value of the receivables acquired as part of the transaction largely corresponds to the carrying amount. There were no significant bad debts and no contingent liabilities at the acquisition date.

For Munich Re, SBH's contributions to the Group's revenue and net result are of secondary importance.

Non-current assets and disposal groups held for sale or sold during the reporting period

Composition of the non-current assets and disposal groups held for sale

$\mathbf{6 m}$	30.6 .2024	31.12 .2023
Assets
Non-financial investments	17	130
Thereof:
Investment property	14	130
Financial investments	23	182
Other assets of the disposal group	15	135
Total assets	55	446
Liabilities
Insurance contracts issued that are liabilities	1	231
Other liabilities of the disposal group	1	43
Total liabilities	2	274

Property units located in Hamburg and Bonn were classified as held for sale in Q4 2023 and Q1 2024 respectively. No value adjustments were required. The units are expected to be sold in the course of the reporting year.

The properties are all allocated to the ERGO Life and Health Germany segment.

The sale of one property in London that we had classified as held for sale in Q4 2023 did not materialise. As there is currently no intention to sell the property, it was reclassified in Q2 2024.

A property portfolio in Cologne that was classified as held for sale in Q3 2023 was sold in Q1 2024.

Our subsidiary American Digital Title Insurance Company, Brighton, Colorado, was still classified as held for sale at the reporting date. No value adjustments resulted from the classification. We expect the sale of the company to occur in the second half of 2024. The transaction is subject to the approval of the supervisory authorities.

In Q2 2024, DKV Pflegedienste \& Residenzen GmbH, Cologne, was classified as held for sale. No value adjustments were required. We expect to have sold the company by the end of the year.

In Q2 2023, we classified DAS UK Holdings Limited, Bedwas - with its subsidiaries DAS Services Limited, DAS Legal Expenses Insurance Company Limited, and DAS Law Limited - as held for sale. No significant value adjustments were required. The disposal took place in Q1 2024.

Further information on disposals due to losing control can be found in this chapter under > Changes in the consolidated group.

The "Other reserves" of Group equity include €1m for disposal groups attributable to unrealised gains from currency translation.

How the non-current assets held for sale or disposal groups are allocated between the segments is disclosed in our segment reporting. Transactions between the disposal group and the Group's continuing operations continued to be fully eliminated.

Financial investments are mainly allocated to Level 2 of the fair value hierarchy.

Segment disclosures

Segment reporting

In accordance with the management approach, the segmentation of our business operations is based on the way in which Munich Re's business is managed internally.

We have identified five reportable segments:

• Life and health reinsurance (global life and health reinsurance business)
• Property-casualty reinsurance (global property-casualty reinsurance business)
• ERGO Life and Health Germany (German life and health primary insurance business and global travel insurance business)
• ERGO Property-casualty Germany (German propertycasualty primary insurance business)
• ERGO International (ERGO's primary insurance business outside Germany)

Certain primary insurers whose business requires special solution-finding competence are coupled to reinsurance as the risk carrier. We therefore transact their business from within reinsurance and consequently allocate them to the reinsurance segments.

The IFRS result contributions are the basis of planning and strategy in all segments, hence the IFRS segment result is the uniform assessment basis for internal management.

Assets and liabilities in connection with intra-Group loans are presented on an unconsolidated basis in the segment balance sheet in accordance with the way they are managed internally, and income and expenses from such loans are likewise presented on an unconsolidated basis in the segment income statement. All other items are presented after elimination of intra-Group transactions and shareholdings.

	Reinsurance
	Life and health		Property-casualty
€m	30.6.2024	31.12.2023	30.6.2024	31.12.2023
A. Intangible assets	288	292	2,186	2,129
B. Reinsurance contracts held that are assets	701	667	2,698	2,518
C. Insurance contracts issued that are assets	5,869	6,473	156	116
D. Investments	19,604	20,882	74,786	69,505
Thereof:
Associates and joint ventures accounted for using the equity method	0	0	4,734	4,610
E. Investments for unit-linked life insurance	0	0	0	0
F. Insurance-related financial instruments	8,248	8,598	892	862
G. Non-current assets held for sale	0	0	22	22
H. Other segment assets	3,638	4,340	9,731	9,592
Total segment assets	38,349	41,251	90,472	84,743

Segment equity and liabilities

Reinsurance

	Life and health		Property-casualty
€m	30.6.2024	31.12.2023	30.6.2024	31.12.2023
A. Subordinated liabilities	510	483	5,690	4,217
B. Reinsurance contracts held that are liabilities	181	112	156	148
C. Insurance contracts issued that are liabilities
I. Liability for remaining coverage	9,603	10,659	$-2,471$	$-1,799$
II. Liability for incurred claims	7,204	6,724	65,781	63,504
III. Other technical liabilities	0	0	0	0
	16,807	17,383	63,310	61,705
D. Other provisions	127	163	534	638
E. Liabilities related to non-current assets held for sale	0	0	2	1
F. Other segment liabilities	5,165	6,017	9,343	8,767
Total segment liabilities	22,790	24,159	79,034	75,476

	Life and Health Germany		Property-casualty Germany		ERGO		Total
					International
30.6.2024	31.12 .2023	30.6.2024	31.12 .2023	30.6.2024	31.12 .2023	30.6.2024	31.12 .2023
59	62	1,301	1,388	392	212	4,227	4,084
18	16	391	381	472	431	4,280	4,014
253	287	263	264	67	53	6,608	7,193
102,426	103,719	8,559	8,133	16,083	16,224	221,459	218,462
574	563	65	72	1,163	1,163	6,536	6,409
6,241	5,778	0	0	2,696	2,502	8,937	8,280
401	412	0	0	0	0	9,541	9,872
33	137	0	5	0	282	55	446
4,823	4,843	1,298	1,360	1,456	1,309	20,946	21,443
114,253	115,254	11,812	11,532	21,166	21,013	276,052	273,793

					ERGO		Total
	Life and Health Germany		Property-casualty Germany		International
30.6.2024	31.12 .2023	30.6.2024	31.12 .2023	30.6.2024	31.12 .2023	30.6.2024	31.12 .2023
0	0	0	0	13	13	6,213	4,713
4	2	104	96	112	78	557	436
110,580	111,195	812	609	12,399	12,315	130,923	132,979
1,773	1,900	6,155	5,983	3,131	3,056	84,044	81,167
0	0	0	0	6	7	6	7
112,353	113,095	6,967	6,592	15,536	15,378	214,973	214,153
765	845	749	786	360	333	2,535	2,766
0	0	0	0	0	273	2	274
1,143	1,800	2,936	2,812	2,489	2,284	21,077	21,680
114,266	115,742	10,756	10,287	18,510	18,358	245,356	244,021
				Equity		30,695	29,772
				Total equity and liabilities		276,052	273,793

	Life and health		Property-casualty
t/m	Q1-2 2024	Q1-2 2023	Q1-2 2024	Q1-2 2023
1. Insurance revenue from insurance contracts issued	5,987	5,340	13,745	13,192
2. Insurance service expenses from insurance contracts issued
Claims expenses	$-4,960$	$-4,601$	$-8,479$	$-9,043$
Changes from underlying items	0	0	0	0
Administration and acquisition costs	$-211$	$-210$	$-2,057$	$-1,834$
Other insurance service expenses	0	0	0	0
	$-5,170$	$-4,810$	$-10,537$	$-10,878$
3. Insurance service result from insurance contracts issued (1+2)	817	529	3,208	2,315
4. Insurance revenue ceded from reinsurance contracts held	$-64$	$-75$	$-539$	$-442$
5. Income from reinsurance contracts held	51	58	301	235
6. Insurance service result from reinsurance contracts held (4+5)	$-13$	$-17$	$-238$	$-207$
7. Insurance service result (3+6)	804	513	2,970	2,107
8. Result from insurance-related financial instruments	399	132	18	57
9. Total technical result (7+8)	1,204	644	2,988	2,164
10. Investment result	350	272	1,463	837
11. Currency result	9	24	71	12
12. Investment result for unit-linked life insurance	0	0	0	0
13. Insurance finance income or expenses from insurance contracts issued	$-86$	$-60$	$-1,127$	$-775$
14. Insurance finance income or expenses from reinsurance contracts held	1	2	46	37
15. Insurance finance income or expenses (13+14)	$-85$	$-58$	$-1,082$	$-738$
16. Net financial result (10+11+12+15)	274	239	453	111
17. Other operating income	157	133	280	260
18. Other operating expenses	$-225$	$-211$	$-691$	$-651$
19. Operating result (9+16+17+18)	1,409	805	3,030	1,884
20. Net finance costs	12	$-2$	$-88$	$-67$
21. Taxes on income	$-316$	$-187$	$-820$	$-479$
22. Net result (19+20+21)	1,105	617	2,122	1,338

Non-current assets by country ${ }^{1}$

$\mathrm{Km}$	30.6 .2024	31.12 .2023
Germany	8,551	8,637
USA	5,243	4,880
United Kingdom	631	557
France	577	580
Netherlands	448	464
Sweden	306	316
Canada	295	303
Belgium	285	290
Spain	267	271
Poland	259	259
Finland	252	86
Austria	236	235
Australia	233	207
Norway	192	0
Denmark	151	139
Italy	137	145
Portugal	105	109
New Zealand	99	67
Switzerland	93	95
Thailand	64	83
Others	217	225
Total	$\mathbf{1 8 , 6 4 1}$	$\mathbf{1 7 , 9 4 8}$

1 The non-current assets mainly comprise intangible assets; investment property; property, plant and equipment; and biological assets.

Investments in non-current assets per segment ${ }^{1}$

$\mathrm{Km}$	Q1-2 2024	Q1-2 2023
Reinsurance - Life and health	70	36
Reinsurance - Property-casualty	101	237
ERGO Life and Health Germany	574	55
ERGO Property-casualty Germany	23	69
ERGO International	215	89
Total	$\mathbf{9 6 4}$	$\mathbf{4 8 7}$

1 The non-current assets mainly comprise intangible assets; investment property; property, plant and equipment; and biological assets.

Insurance revenue from insurance contracts issued

$\mathrm{Km}$	Q1-2 2024	Q1-2 2023
Europe	16,232	16,286
North America	9,534	7,953
Asia and Australasia	2,690	2,871
Africa, Middle East	809	757
Latin America	749	580
Total	$\mathbf{3 0 , 0 1 4}$	$\mathbf{2 8 , 4 4 8}$

Alternative performance measures

In addition to IFRS metrics, Munich Re uses alternative performance measures to assess its financial performance. These alternative performance measures are not defined or set out in IFRSs, but provide useful information about our financial position and performance and contribute to the comprehensibility of our results. They serve to supplement, not replace, the metrics defined in the IFRSs. Similarly named alternative performance measures published by other companies have potentially been calculated differently and might therefore not be comparable, or be comparable only to a limited extent.

Gross premiums written

Gross premiums written comprise all premium income due for payment in a financial year. Under IFRS 17, however, the reporting metric is insurance revenue, which is calculated based on the services provided from the groups of insurance contracts. Insurance revenue is substantially lower than gross premiums written because premium amounts that are repaid to policyholders under all circumstances, regardless of whether an insured event occurs (investment components), are not recognised as insurance revenue. This relates in particular to commissions and profit commissions in reinsurance business. Differences also arise from the recognition of insurance revenue based on services provided over the reporting period and adjustments for financing effects, among other factors. In the interest of comparability, we disclose gross premiums written as an alternative performance measure. Gross premiums written are no longer used as a performance indicator for corporate growth or as a corporate management tool.

Comparison of gross premiums written and insurance revenue

	Reinsurance					ERGO
	Life and health		Property-casualty		Life and Health Germany
€m	Q1-2 2024	Q1-2 2023	Q1-2 2024	Q1-2 2023	Q1-2 2024	Q1-2 2023
Gross premiums written	7,386	6,568	18,227	17,521	5,281	5,321
Insurance revenue from insurance contracts issued	5,987	5,340	13,745	13,192	4,946	4,916

Comparison of gross premiums written and insurance revenue

$\rightarrow$
				ERGO		Total
	Property-casualty Germany			International
€m	Q1-2 2024	Q1-2 2023	Q1-2 2024	Q1-2 2023	Q1-2 2024	Q1-2 2023
Gross premiums written	2,841	2,666	3,302	2,952	37,037	35,028
Insurance revenue from insurance contracts issued	2,319	2,246	3,017	2,753	30,014	28,448

Combined ratio

The combined ratio is a regularly used metric for propertycasualty business. It is calculated as the percentage ratio of the insurance service expenses and insurance revenue,
both of which on a net basis, i.e. after reinsurance cessions. Given that the combined ratio takes into account the time value of money and the uncertainty of future cash flows, it can also be used to assess economic profitability.

Notes on determining the combined ratio

	Reinsurance					ERGO
		Property-casualty		Property-casualty Germany		International ${ }^{1}$
€m	Q1-2 2024	Q1-2 2023	Q1-2 2024	Q1-2 2023	Q1-2 2024	Q1-2 2023
Insurance revenue (net)
Insurance revenue from insurance contracts issued	13,745	13,192	2,319	2,246	2,428	2,149
Insurance revenue ceded from reinsurance contracts held	$-539$	$-442$	$-54$	$-40$	$-125$	$-97$
	13,206	12,750	2,265	2,206	2,303	2,052
Insurance service expenses (net)
Insurance service expenses from insurance contracts issued	$-10,537$	$-10,878$	$-1,983$	$-1,883$	$-2,158$	$-1,949$
Income from reinsurance contracts held	301	235	26	15	71	69
	$-10,236$	$-10,643$	$-1,957$	$-1,868$	$-2,087$	$-1,880$
Combined ratio	77.5	83.5	86.4	84.7	90.6	91.6

1 Property-casualty business, travel insurance business and short-term health insurance business (excluding health insurance conducted like life insurance).

Return on equity (RoE)

The return on equity (RoE) is an important profitability KPI, which is of relevance in particular in the medium term. It is calculated on the basis of the Group's IFRS net result in relation to the average IFRS equity at the beginning and end of the year. IFRS equity is adjusted in particular for the fair value reserve, the foreign currency translation reserve, the insurance finance reserve (from the measurement of
insurance contracts) and the reserve from hedging relationships. Further adjustments are made to eliminate distortions attributable to intra-Group transactions. IFRS equity is affected by profits as well as by capital measures such as dividend payments and share buy-backs, in particular. The RoE is disclosed for the Group and for the reinsurance and ERGO fields of business.

Notes on determining the annualised return on equity (RoE) for the first half of 2024

	Reinsurance		ERGO		Total
€m	30.6.2024	31.12.2023	30.6.2024	31.12.2023	30.6.2024
Segment assets	128,821	125,994	147,231	147,799	276,052
Segment equity and liabilities	101,824	99,634	143,532	144,387	245,356
Adjustments used in the calculation of equity
Other reserves - Fair value measurement, measurement of insurance contracts, currency translation, hedging relationships	70	189	$-990$	$-785$	$-921$
Adjustment item for material asset transfers between reinsurance and ERGO	250	940	$-250$	$-940$	0
Adjusted equity	26,677	25,231	4,939	5,138	31,616
	Q1-2 2024		Q1-2 2024		Q1-2 2024
Average adjusted equity	25,954		5,038		30,993
Net result	3,227		535		3,763
Return on equity (RoE)	\%	24.9	21.3		24.3

Notes on determining the annualised return on equity (RoE) for the first half of $2023^{\circ}$

	Reinsurance		ERGO		Total
€m	30.6.2023	31.12.2022	30.6.2023	31.12.2022	30.6.2023
Segment assets	119,763	127,087	143,989	142,304	263,752
Segment equity and liabilities	95,383	102,950	140,933	139,196	236,315
Adjustments used in the calculation of equity
Other reserves - Fair value measurement, measurement of insurance contracts, currency translation, hedging relationships	$-184$	417	$-1,251$	$-1,439$	$-1,435$
Adjustment item for material asset transfers between reinsurance and ERGO	697	976	$-697$	$-976$	0
Adjusted equity	23,867	22,743	5,004	5,524	28,871
	Q1-2 2023		Q1-2 2023		Q1-2 2023
Average adjusted equity	23,305		5,264		28,569
Net result	1,955		470		2,425
Return on equity (RoE)	\%	16.8	17.8		17.0

1 Adjusted due to changes in "Retained earnings" and "Other reserves".

Notes to the consolidated balance sheet

Intangible assets

Development of intangible assets

	Goodwill		Other intangible assets		Total
€m	2024	Prev. year	2024	Prev. year	2024	Prev. year
Gross carrying amount at 1 January	4,747	4,803	3,821	3,935	8,568	8,738
Accumulated amortisation and impairment losses at 1 January	$-1,563$	$-1,563$	$-2,921$	$-2,892$	$-4,484$	$-4,455$
Carrying amount at 1 January	3,184	3,240	900	1,043	4,084	4,284
Currency translation differences	58	$-40$	4	4	62	$-36$
Additions	157	19	105	98	262	117
Disposals	$-13$	$-5$	$-65$	$-2$	$-78$	$-7$
Reclassifications	0	0	0	$-140$	0	$-140$
Reversal of impairment losses	0	0	0	0	0	0
Amortisation	0	0	$-104$	$-80$	$-104$	$-80$
Impairment losses	0	0	0	$-8$	0	$-8$
Carrying amount at 30 June	3,386	3,215	840	915	4,227	4,130
Accumulated amortisation and impairment losses at 30 June	$-1,563$	$-1,563$	$-3,046$	$-2,842$	$-4,609$	$-4,405$
Gross carrying amount at 30 June	4,949	4,778	3,886	3,756	8,835	8,534

Reinsurance contracts held

The following table shows the development of the risk adjustment for non-financial risk and net cost/gain on
(contractual service margin of) reinsurance contracts held that are (net) assets or liabilities.

Development of risk adjustment and net cost/gain

	2024			Prev. year
€m	Risk adjustment	Net cost/gain	Risk adjustment	Net cost/gain
Carrying amount at 1 January	127	293	122	376
Insurance service result
Changes that relate to services provided in the reporting period and to past service	$-5$	$-36$	$-9$	$-25$
Thereof:
Expected risk adjustment release for the service provided in the period	$-5$		$-5$
Other changes in the risk adjustment	0		$-5$
Changes that relate to future service	0	58	24	18
	$-6$	22	14	$-7$
Insurance finance income or expenses from reinsurance contracts held	0	2	0	2
Other	$-9$	$-12$	$-10$	$-21$
Changes presented in other comprehensive income	$-3$	0	9	0
IFRS 5 reclassification	0	1	0	$-1$
Carrying amount at 30 June	111	305	136	349

Reinsurance contracts held recognised in the reporting period for the first time

Equity

Number of shares in circulation and number of treasury shares

	$30.6 .2024$	$31.12 .2023$
Number of shares in circulation	$133,118,460$	$134,599,807$
Number of treasury shares	641,827	$1,868,343$
Total	$\mathbf{1 3 3 , 7 6 0 , 2 8 7}$	$\mathbf{1 3 6 , 4 6 8 , 1 5 0}$

Subordinated liabilities

Breakdown of subordinated liabilities

$\epsilon \mathrm{m}$	Fitch	S\&P	30.6.2024	31.12.2023
Munich Reinsurance Company, Munich, 4.250\% until 2034, thereafter floating, $€ 1,500 \mathrm{~m}$, Bonds 2024/2044	A	A	1,494	0
Munich Reinsurance Company, Munich, 5.875\% until 2032, thereafter floating, US\$ 1,250m, Bonds 2022/2042	A	A	1,167	1,132
Munich Reinsurance Company, Munich, 1.00\% until 2032, thereafter floating, $€ 1,000 \mathrm{~m}$, Bonds 2021/2042	A	A	994	999
Munich Reinsurance Company, Munich, 1.25\% until 2031, thereafter floating, $€ 1,250 \mathrm{~m}$, Bonds 2020/2041	A	A	1,240	1,247
Munich Reinsurance Company, Munich, 3.25\% until 2029, thereafter floating, $€ 1,250 \mathrm{~m}$, Bonds 2018/2049	A	-	1,247	1,266
ERGO Versicherung Aktiengesellschaft, Vienna, secondary market yield on federal government bonds (Austria)
$\cdot 70$ BP, €6m, Registered bonds 2001/perpetual	-	-	6	6
ERGO Versicherung Aktiengesellschaft, Vienna, secondary market yield on federal government bonds (Austria)
・70 BP, €7m, Registered bonds 1998/perpetual	-	-	7	7
HSB Group Inc., Dover, Delaware, SOFR +91 BP, US\$ 76m, Bonds 1997/2027	-	-	58	56
Total			6,213	4,713

The above-mentioned subordinated liabilities mature in more than one year.

Insurance contracts issued

The following table shows the development of the risk adjustment for non-financial risk and contractual service margin of insurance contracts issued that are (net) assets or liabilities.

Development of risk adjustment and contractual service margin

	2024		Prev. year
	Risk adjustment	Contractual service margin	Risk adjustment	Contractual service margin
Carrying amount at 1 January	$-4,814$	$-25,439$	$-4,224$	$-25,400$
Insurance service result
Changes that relate to services provided in the reporting period and to past service	221	1,406	189	1,258
Thereof:
Expected risk adjustment release for the service provided in the period	188		160
Other changes in the risk adjustment	33		30
Changes that relate to future service	$-277$	$-3,040$	$-449$	$-1,137$
	$-55$	$-1,634$	$-259$	121
Insurance finance income or expenses from insurance contracts issued	$-55$	$-198$	$-28$	$-95$
Other	$-38$	$-137$	76	190
Changes presented in other comprehensive income	171	0	17	0
IFRS 5 reclassification	$-2$	$-18$	1	17
Carrying amount at 30 June	$-4,792$	$-27,426$	$-4,418$	$-25,167$

In the following tables, we present the underwritten or acquired insurance contracts recognised in the reporting period for the first time based on the segments in which the general measurement model or the variable fee approach is predominantly used in order to explain the change in the contractual service margin and the risk adjustment for nonfinancial risk of the liability for remaining coverage. The
property-casualty reinsurance and ERGO Property-casualty Germany segments are not shown, as these insurance contracts issued are measured predominantly using the premium allocation approach, meaning that the contractual service margin and the risk adjustment for non-financial risk of the liability for remaining coverage are of minor importance in these segments.

Insurance contracts issued recognised in the reporting period for the first time - Life and health reinsurance segment

Insurance contracts issued recognised in the reporting period for the first time - ERGO Life and Health segment

Insurance contracts issued recognised in the reporting period for the first time - ERGO International segment

Non-derivative financial liabilities

The non-derivative financial liabilities include liabilities to credit institutions, lease liabilities and a bond issued.

Ratings and carrying amount of the bond issued

€m	A.M. Best	Fitch	S\&P	30.6 .2024	31.12 .2023
Munich Re America Corporation, Dover, Delaware, 7.45\%,	a	AA-	A-	260	266
US\$ 279m², Senior Notes 1996/2026				260	266
Total				260	266

1 In the first half of 2024, the issuer made a partial redemption corresponding to a nominal volume of US\$ 16 m .

Notes to the consolidated income statement

The major items in the consolidated income statement are made up as follows:

Insurance revenue
Insurance revenue

€m	Q1-2 2024	Q1-2 2023
Insurance revenue from insurance contracts issued
Expected claims incurred and other expenses in the reporting period	10,843	9,877
Expected release of risk adjustment for non-financial risk for the reporting period	188	160
Contractual service margin for services provided in the reporting period	1,406	1,257
Portion of premium that relates to the recovery of acquisition costs	719	669
Experience adjustments for premium receipts and related cash flows	60	142
Tax specifically chargeable to the policyholder	0	0
Insurance revenue from short-term contracts	16,798	16,344
	30,014	28,448
Insurance revenue ceded from reinsurance contracts held	$-796$	$-664$

Insurance service expenses and income from reinsurance contracts held
Insurance service expenses and income from reinsurance contracts held

€m	Q1-2 2024	Q1-2 2023
Insurance service expenses from insurance contracts issued
Claims expenses	$-20,619$	$-20,252$
Changes from underlying items	203	$-155$
Administration and acquisition costs	$-4,340$	$-3,984$
Other insurance service expenses	0	0
	$-24,757$	$-24,391$
Income from reinsurance contracts held	456	384

Investment result
Investment result by type of investment

€m	Q1-2 2024	Q1-2 2023
Investment result from non-financial investments
Investment property	109	227
Property, plant and equipment	46	47
Intangible assets	$-6$	0
Biological assets	28	28
Inventories	0	0
Investments in affiliated companies, associates and joint ventures	204	306
Thereof:
Associates and joint ventures accounted for using the equity method	184	313
	381	608
Investment result from financial investments	3,529	1,876
Expenses for the management of investments, other expenses	$-276$	$-276$
Total	3,633	2,208

Investment result for unit-linked life insurance
The investments for unit-linked life insurance generated regular income of $€ 46 \mathrm{~m}(43 \mathrm{~m})$. The change in fair value
amounted to $€ 610 \mathrm{~m}(448 \mathrm{~m})$. The expenses incurred for managing these investments amounted to $€ 1 \mathrm{~m}(1 \mathrm{~m})$.

Insurance finance income or expenses

Insurance finance income or expenses

€m	Q1-2 2024	Q1-2 2023
Insurance finance income or expenses from insurance contracts issued
Accretion of interest from insurance contracts issued	$-1,378$	$-944$
Impact of changes in interest rates from insurance contracts issued	2	1
Changes in the fair value of underlying items	$-2,209$	$-1,333$
	$-3,584$	$-2,276$
Insurance finance income or expenses from reinsurance contracts held
Accretion of interest from reinsurance contracts held	53	42
Impact of changes in interest rates from reinsurance contracts held	0	2
Total	53	43
	$-3,531$	$-2,232$

Other operating income and expenses

Other operating income and expenses

€m	Q1-2 2024	Q1-2 2023
Other operating income	668	582
Thereof:
Interest and similar income	115	67
Reversal of impairment losses on other assets	6	2
Other operating expenses	$-1,697$	$-1,574$
Thereof:
Interest and similar expenses	$-62$	$-56$
Impairment losses on other assets	$-8$	1

Other operating income in the first six months of the year mainly comprised income of $€ 427 \mathrm{~m}$ (390m) from services rendered, income of $€ 15 \mathrm{~m}$ (17m) from the release/reduction of other provisions, and income of $€ 13 \mathrm{~m}$ (11m) from owneroccupied property, some of which is also leased out.

Other operating expenses mainly included expenses of $€ 954 \mathrm{~m}$ (919m) for Group functions, central tasks and projects, and expenses not directly attributable to a portfolio of insurance contracts or not forming part of cash flows within insurance contract boundaries. Also included were expenses of $€ 447 \mathrm{~m}(435 \mathrm{~m})$ for services received and other tax of $€ 70 \mathrm{~m}(53 \mathrm{~m})$. Interest and similar expenses amounting to $€ 5 \mathrm{~m}(4 \mathrm{~m})$ concerned interest charges from leases.

Notes to the financial instruments and fair value disclosures on assets and liabilities

Carrying amounts and categories of financial instruments

We manage our financial assets depending on the nature and extent of the underlying risk parameters. For the purposes of these Notes to the financial instruments, we have grouped our financial assets and liabilities into classes accordingly.

Financial investments comprise Munich Re's main economic asset classes. We distinguish between financial investments subject to equity risk, financial investments subject to interest-rate and credit risk, and alternative investments. Financial investments are largely managed within the business model "hold to collect and sell" and measured either at fair value through other comprehensive income or at fair value through profit or loss, depending on whether or not they pass the SPPI test. By contrast, fixed-
term deposits with credit institutions are managed within the business model "hold to collect" and - since they pass the SPPI test - are thus measured at amortised cost.

Investments for unit-linked life insurance and insurancerelated financial instruments are managed within the business model "other" based on their fair value. They each constitute a class. Insurance-related financial instruments also include hybrid contracts with host insurance contracts that are designated as measured at fair value through profit or loss due to embedded derivatives that must be separated.

Financial receivables and cash and cash equivalents are managed within the business model "hold to collect" and - since they pass the SPPI test - are measured at amortised cost.

We also assign lease receivables to the class of financial receivables; however, they do not fall into one of the IFRS 9 measurement categories.

Carrying amounts and measurement categories of economic asset classes of financial assets

€m	Amortised cost	Fair value through profit or loss - Mandatory	Fair value through profit or loss - Designated	Fair value through other comprehensive income	Hedge accounting	Lease receivables	Total
Financial investments
Instruments subject to equity risk	0	9,545	0	0	0	0	9,545
Instruments subject to interest-rate and credit risk	2,971	10,083	0	164,106	0	0	177,159
Alternative investments	0	9,559	0	6,709	0	0	16,268
	2,971	29,186	0	170,815	0	0	202,972
Investments for unit-linked life insurance	0	8,937	0	0	0	0	8,937
Insurance-related financial instruments	0	9,482	59	0	0	0	9,541
Financial receivables	3,860	0	0	0	0	39	3,899
Cash and cash equivalents	5,540	0	0	0	0	0	5,540
Total financial assets	12,371	47,605	58	170,815	0	39	230,889

						31.12 .2023
	Amortised cost	Fair value through profit or loss - Mandatory	Fair value through profit or loss - Designated	Fair value through other comprehensive income	Hedge accounting	Lease receivables
Financial investments
Instruments subject to equity risk	0	10,820	0	0	0	0
Instruments subject to interest-rate and credit risk	2,975	10,786	0	160,735	0	0
Alternative investments	0	8,882	0	6,518	0	0
	2,975	30,487	0	167,254	0	0
Investments for unit-linked life
insurance	0	8,280	0	0	0	0
Insurance-related financial instruments	0	9,635	36	0	0	0
Financial receivables	3,807	0	0	0	0	35
Cash and cash equivalents	5,595	0	0	0	0	0
Total financial assets	12,376	48,602	36	167,254	0	35

Our financial liabilities are included in the balance sheet items "Subordinated liabilities" and "Liabilities". Subordinated liabilities constitute a class of their own, whereas liabilities are broken down into several classes. Derivatives and insurance-related liabilities each constitute a class of their
own. Non-derivative financial liabilities are broken down into bonds and notes issued, liabilities to credit institutions, and other financial liabilities. Lease liabilities are also included under financial liabilities; however, they do not fall into one of the IFRS 9 measurement categories.

Carrying amounts and measurement categories of economic classes of financial liabilities

						30.6.2024
	Amortised cost	Fair value through profit or loss - Mandatory	Fair value through profit or loss - Designated	Hedge accounting	Lease liabilities	Total
Subordinated liabilities	6,213	0	0	0	0	6,213
Liabilities
Derivatives	0	806	0	9	0	814
Non-derivative financial liabilities
Bonds and notes issued	260	0	0	0	0	260
Liabilities to credit institutions	1,229	0	0	0	0	1,229
Other financial liabilities	2,627	0	68	0	425	3,120
	4,116	0	68	0	425	4,609
Other liabilities
Insurance-related liabilities	605	2,472	1,407	0	0	4,484
Subtotal	4,721	3,277	1,475	9	425	9,907
Total financial liabilities	10,934	3,277	1,475	9	425	16,120

					31.12.2023
	Amortised cost	Fair value through profit or loss - Mandatory	Fair value through profit or loss - Designated	Hedge accounting	Lease liabilities
Subordinated liabilities	4,713	0	0	0	0
Liabilities
Derivatives	0	1,371	0	8	0
Non-derivative financial liabilities
Bonds and notes issued	266	0	0	0	0
Liabilities to credit institutions	912	0	0	0	0
Other financial liabilities	2,452	0	93	0	437
	3,631	0	93	0	437
Other liabilities
Insurance-related liabilities	622	2,990	1,207	0	0
Subtotal	4,253	4,361	1,300	8	437
Total financial liabilities	8,966	4,361	1,300	8	437

Fair value hierarchy for assets and liabilities

All assets and liabilities measured at fair value, or not measured at fair value in the consolidated balance sheet but for which a fair value has to be disclosed in the Notes, are allocated to one of the fair value hierarchy levels set out in IFRS 13. Further information can be found in the Group Annual Report 2023 under $>$ Notes to the consolidated
financial statements $>$ Accounting policies $>$ Overarching accounting policies $>$ Fair value.

The following table provides an overview of the valuation techniques and inputs used to measure the fair values of our assets and liabilities if quoted prices for these instruments are not available.

Bonds and notes	Pricing method	Inputs	Pricing model
Interest-rate risks
Promissory note loans/ registered bonds	Theoretical price	Sector-, rating- or issuer-specific yield curve	Present-value method
RUB-denominated Russian government bonds	Theoretical price	Issuer-specific yield curve	Present-value method
Mortgage loans	Theoretical price	Sector-specific yield curve considering the profit margin included in the nominal interest rate	Present-value method
Derivatives	Pricing method	Inputs	Pricing model
Equity and index risks
OTC stock options	Theoretical price	Listing of underlying Effective volatilities Money-market interest-rate curve Dividend yield	Black-Scholes (European) Cox, Ross and Rubinstein (American)
Equity forwards	Theoretical price	Listing of underlying Money-market interest-rate curve Dividend yield	Present-value method
Interest-rate risks
Interest-rate swaps	Theoretical price	Swap and CSA curve ${ }^{1}$	Present-value method
Swaptions/interest-rate guarantee	Theoretical price	At-the-money volatility matrix and skew OIS/swap curve	Bachelier/ Normal Black
Interest-rate currency swaps	Theoretical price	Swap and CSA curve ${ }^{1}$ Currency spot rates	Present-value method
Inflation swaps	Theoretical price	Zero-coupon inflation swap rates OIS curve	Present-value method
Bond forwards (forward transactions)	Theoretical price	Listing of underlying OIS curve	Present-value method
Currency risks
Currency options	Theoretical price	Volatility skew Currency spot rates Money-market interest-rate curve	Garman-Kohlhagen (European)
Currency forwards	Theoretical price	Currency spot rates Currency forward rates/ticks Money-market interest-rate curve	Present-value method
Other transactions
Insurance derivatives (natural and weather risks)	Theoretical price	Fair values of catastrophe bonds Historical event data Interest-rate curve	Present-value method
Insurance derivatives (variable annuities)	Theoretical price	Biometric rates and lapse rates Volatilities Interest-rate curve Currency spot rates	Present-value method
Credit default swaps	Theoretical price	Credit spreads Recovery rates CSA curve ${ }^{1}$	ISDA CDS Standard Model
Total return swaps on commodities	Theoretical price	Listing of underlying index	Index ratio calculation
Commodity options	Theoretical price	Listing of underlying Effective volatilities Money-market interest-rate curve Cost of carry	Black-Scholes (European) Cox, Ross and Rubinstein (American)

Bonds and notes with embedded derivatives	Pricing method	Inputs	Pricing model
Callable bonds	Theoretical price	Swap curve Issuer-specific spreads Volatility matrix	Hull-White
CMS floaters	Theoretical price	Swap curve Issuer-specific spreads Volatility matrix and skews	Replication model (Hagan) Stochastic volatility model Hull-White
CMS floaters with variable cap	Theoretical price	Swap curve Issuer-specific spreads Volatility matrix and skews	Replication model (Hagan) Stochastic volatility model Hull-White
Inverse CMS floaters	Theoretical price	Swap curve Issuer-specific spreads Volatility matrix and skews	Replication model (Hagan) Stochastic volatility model Hull-White
CMS steepeners	Theoretical price	Swap curve Issuer-specific spreads Volatility matrix and skews Correlation matrix	Replication model (Hagan) Stochastic volatility model Hull-White
Convergence bonds	Theoretical price	Swap curve Issuer-specific spreads Volatility matrix Correlation matrix	Replication model (Hagan) Stochastic volatility model
Multi-tranches	Theoretical price	At-the-money volatility matrix and skew Swap curve Sector-, rating- or issuer-specific yield curve	Bachelier/ Normal Black, Present-value method, Hull-White
FIS promissory note loans	Theoretical price	At-the-money volatility matrix and skew Swap curve Sector-, rating- or issuer-specific yield curve	Bachelier/ Normal Black, Present-value method
Swaption notes	Theoretical price	At-the-money volatility matrix and skew Swap curve Money-market interest-rate curve Sector-, rating- or issuer-specific yield curve	Bachelier/ Normal Black, Present-value method
Catastrophe bonds	Theoretical price	Fair values of catastrophe bonds Historical event data Interest-rate curve	Present-value method
Funds	Pricing method	Inputs	Pricing model
Real estate funds	$-$	$-$	Net asset value
Alternative investment funds (e.g. private equity, infrastructure, forestry)	$-$	$-$	Net asset value
Other	Pricing method	Inputs	Pricing model
Real estate	Theoretical market price	Interest-rate curve Market rents	Present-value method or valuation
Alternative direct investments (e.g. infrastructure, forestry)	Theoretical market price	Interest-rate curve (among others) Electricity price forecast and inflation forecast Timber price	Present-value method or valuation
Insurance contracts that do not transfer significant insurance risk	Theoretical market price	Biometric rates and lapse rates Historical event data Interest-rate curve Currency spot rates	Present-value method

[^0]
[^0]: 1 The OIS curve is used if the quotation currency is the CSA currency.

The fair value of the loans and the bonds is based on established valuation techniques in line with the presentvalue principle and taking observable and, in some cases, unobservable market inputs into account. The derivative components of catastrophe bonds are measured based on the values supplied by brokers for the underlying bonds, which is why the extent to which unobservable inputs were used cannot readily be assessed.

The fair value of derivative financial instruments is based on the present-value method or established option pricing models using mostly observable market inputs such as interest-rate curves, volatilities or exchange rates.

Insurance derivatives and insurance contracts that do not transfer significant insurance risk are mostly allocated to Level 3 of the fair value hierarchy, as observable market inputs are often not available. The decision is made on a case-by-case basis, taking into account the characteristics of the financial instrument. In this case, observable market inputs are not exclusively available, so that biometric rates (including lapse rates) and historical event data are used for valuation on the basis of the present-value method.

The inputs required in measuring variable annuities are derived either directly from market data (in particular volatilities, interest-rate curves and currency spot rates) or from actuarial data (especially biometric and lapse rates). The lapse rates used are modelled dynamically depending on the specific insurance product and current capital market situation. Mortality assumptions are based on client-specific data or published mortality tables, which are adjusted with regard to the target markets and the actuaries' expectations. The dependencies between different capital market inputs are modelled by correlation matrices. Where the valuation of these products is not based on observable inputs, which is usually the case, we allocate them to Level 3 of the fair value hierarchy.

The other investments allocated to Level 3 are mainly external fund units (in particular, private equity, real estate and funds that invest in a variety of assets that are subject to theoretical valuation). Since market quotes are not available on a regular basis, net asset values (NAVs) are provided by asset managers. The NAVs are determined by
adding up all the fund assets and subtracting all the fund liabilities. The NAV per fund unit is calculated by dividing the NAV by the number of outstanding fund units. We thus do not perform our own valuations using unobservable inputs. We regularly subject the valuations supplied to plausibility tests on the basis of comparable investments.

We have taken climate risks and other ESG risks into account implicitly in our determination of fair values using the respective forward-looking valuation inputs, provided that they have an influence on price in the capital markets in which the products of relevance here are traded. When determining fair values based on unobservable inputs, the risks are taken into account in the estimates and assumptions where they have a significant impact on valuation.

Among the associates and joint ventures accounted for using the equity method, there is only one investment for which a quoted market price is available.

The fair value of investment property managed by Munich Re is measured by valuation experts within the Group, while the fair value of investment property managed by third parties is measured by external valuation experts. Property is allocated to Level 3 of the fair value hierarchy. Determining the sustainability of income and expenses, taking into account the market conditions at the property location, is essential for the valuation. The fair value is determined individually per item by discounting the future net cash inflows to the measurement date.

The measurement of subordinated liabilities for which quoted market prices are not available is performed using the present-value method and taking observable market inputs into account. For subordinated liabilities and the bond we have issued for which quoted market prices are available in each case, we use the quoted market prices of corresponding assets provided by price quoters to measure the fair value. The fair values of our liabilities to credit institutions are determined using the present-value method, in part exclusively using observable market inputs, and partly also taking into account unobservable inputs.

In the following table, we present the fair values of our assets at the reporting date for each level of the fair value hierarchy.

Allocation of assets to levels of the fair value hierarchy

The fair value of our investment portfolio increased in the first half of the year, particularly with regard to instruments subject to interest-rate and credit risk, due to new investments as a result of cash inflows.

The fair values of our liabilities at the reporting date for each level of the fair value hierarchy are presented in the following table.

Allocation of liabilities to levels of the fair value hierarchy

				30.6.2024
€m	Level 1	Level 2	Level 3	Total
Subordinated liabilities	0	5,781	0	5,781
Liabilities
Derivatives	83	657	74	814
Non-derivative financial liabilities
Bonds and notes issued	0	260	0	260
Liabilities to credit institutions	0	531	699	1,229
Other financial liabilities	0	3,699	245	3,944
	0	4,489	944	5,433
Other liabilities
Insurance-related liabilities	29	1,724	2,730	4,484
Subtotal	113	6,870	3,749	10,731
Total	113	12,652	3,749	16,513

				31.12.2023
€m	Level 1	Level 2	Level 3	Total
Subordinated liabilities	0	4,298	0	4,298
Liabilities
Derivatives	264	1,038	77	1,379
Non-derivative financial liabilities
Bonds and notes issued	0	266	0	266
Liabilities to credit institutions	0	223	690	912
Other financial liabilities	0	3,278	240	3,519
	0	3,767	930	4,697
Other liabilities
Insurance-related liabilities	31	1,733	3,056	4,820
Subtotal	294	6,538	4,063	10,895
Total	294	10,836	4,063	15,193

At each reporting date, we assess whether the allocation of our assets and liabilities to the levels of the fair value hierarchy is still appropriate. If changes in the basis of valuation have occurred - for instance, if a market is no longer active or the valuation was performed using inputs
requiring a different allocation - we make the necessary adjustments.

In the following tables, we present the instruments transferred to a different level of the fair value hierarchy in the reporting period or the previous period.

There were no transfers between levels of the fair value hierarchy for liabilities.

Reconciliation of the fair values of assets and liabilities allocated to Level 3 of the fair value hierarchy

The following tables show a reconciliation of the fair values of assets and liabilities allocated to Level 3 of the fair value hierarchy broken down by class.

Reconciliation of the fair values of the assets allocated to Level 3

$\rightarrow$	Non-financial assets held as underlying items
		Investment property		Owner-occupied property
€m		2024	Prev. year	2024	Prev. year
Fair value at 1 January		5,613	5,917	914	992
Gains and losses
on derivative transactions		0	0	0	0
on non-derivative transactions		$-124$	$-50$	$-1$	$-24$
recognised in equity		0	0	0	0
		$-124$	$-50$	$-1$	$-24$
Additions		169	165	0	0
Disposals		$-6$	$-227$	$-2$	$-8$
Transfer to Level 3		0	0	0	0
Transfer from Level 3		0	0	0	0
Other		211	$-20$	0	83
Fair value at 30 June ${ }^{1}$		5,862	5,785	911	1,043

1 Previous year's figures adjusted based on changes in the allocation of individual asset classes.
Including investments in affiliated companies, associates and joint ventures measured at fair value.

Reconciliation of the fair values of the liabilities allocated to Level 3

	Derivatives		Non-derivative financial liabilities
			Bonds and notes issued		Other financial liabilities
€m	2024	Prev. year	2024	Prev. year	2024	Prev. year
Fair value at 1 January	77	218	0	0	93	0
Gains and losses
on derivative transactions	0	$-1$	0	0	0	0
on non-derivative transactions	21	$-10$	0	0	1	0
recognised in equity	0	0	0	0	0	0
	20	$-11$	0	0	1	0
Additions	0	1	0	0	0	0
Disposals	$-24$	$-43$	0	0	$-26$	0
Transfer to Level 3	0	0	0	0	0	0
Transfer from Level 3	0	0	0	0	0	0
Other	0	0	0	0	0	0
Fair value at 30 June ${ }^{1}$	74	165	0	0	68	0

$\rightarrow$			Insurance-related liabilities
€m				2024	Prev. year
Fair value at 1 January				2,949	2,492
Gains and losses
on derivative transactions				$-32$	$-70$
on non-derivative transactions				$-29$	$-46$
recognised in equity				0	0
				$-61$	$-116$
Additions				953	1,219
Disposals				$-639$	$-1,043$
Transfer to Level 3				0	0
Transfer from Level 3				0	0
Other				$-712$	0
Fair value at 30 June ${ }^{1}$				2,491	2,552

1 Previous year's figures adjusted based on changes in the allocation of individual asset classes.

Changes in fair value recognised in the consolidated income statement for assets allocated to Level 3 of the fair value hierarchy are presented in the result from insurancerelated financial instruments, the investment result, or the investment result for unit-linked life insurance. Gains and losses on these assets recognised in equity are shown as part of unrealised gains and losses in other comprehensive income.

Changes in fair value recognised in the consolidated income statement for liabilities allocated to Level 3 of the fair value hierarchy are presented in the result from insurance-related financial instruments or the investment result. Where the impact of own credit risk of financial liabilities designated as at fair value through profit or loss is recognised in equity, we present it as part of unrealised gains and losses in other comprehensive income. When the

financial liabilities designated as at fair value through profit or loss are derecognised, the amount of change in the fair value attributable to changes in the credit risk and recognised in other comprehensive income is transferred to retained earnings.

Sensitivity of unobservable inputs used to measure fair value

If the value of financial instruments is based on unobservable inputs, the value of these inputs at the reporting date is derived using a range of reasonably possible alternatives that are determined based on discretionary judgement. The values we select for such unobservable inputs used to measure fair value are reasonable and commensurate with the prevailing market conditions and the respective measurement approach.

The following information sets out the significant unobservable inputs for financial assets and liabilities allocated to Level 3 of the fair value hierarchy, and subsequently illustrates the effect that a change in the inputs has on the fair value. The sensitivities presented have been calculated based on the assumption that only the inputs in question have changed. In reality, however, it is unlikely that changes in market conditions affect only one input. For that reason, the effects shown here on the fair values calculated may differ from the actual changes in fair value. It should also be noted that the disclosures are neither a prediction nor an indication of future changes in fair value.

Significant estimation uncertainties and judgements are involved in measuring instruments that are subject to credit risk if no issuer rating is available and it is not possible to access prices for traded financial instruments from the issuer.

This usually applies to mortgage loans and infrastructure loans. In such cases, we use our internal rating model to estimate the issuer's credit risk and determine, on the basis of their operating sector, geographic location and creditworthiness, the interest-rate curve to apply to measure the fair value. If the interest-rate curve were to increase or decrease, it would lead to a decrease or increase in the fair value of interest-sensitive financial investments.

A significant share of the insurance-related financial instruments is comprised of annuity policies and life insurance contracts that do not transfer significant insurance risk. Here, actuarial data such as biometric data (mortality rates) and lapse rates are the underlying significant unobservable inputs. A decrease (or increase) in lapse rates, mortality rates or annuity claims would lead to a higher (or lower) fair value. In the case of contracts that provide high death benefits, the effect for lapse rate changes may be reversed. A decrease (or increase) in the exercising of withdrawal plans would lead to a lower (or higher) fair value. In the event of a change in these unobservable inputs, the resulting changes in the fair value of the insurance-related financial instruments would be immaterial, as these contracts do not transfer significant insurance risk.

Other instruments for which we used significant unobservable inputs to measure the fair value are unlisted fund investments, investments in private-equity companies and direct investments in non-listed companies. For these assets, the fair value is determined based on the net asset value of the investment. Any changes in the net asset value would lead to a corresponding adjustment of the fair value, i.e. a $10 \%$ increase (decrease) in the net asset value would mean that the fair value would also increase (decrease) by $10 \%$.

Notes on insurance contracts

Yield curves for major currencies
To discount cash flows from reinsurance contracts held and insurance contracts issued, we use the following yield curves for our most important currencies:

Yield curves for major currencies

All of the companies in the reinsurance group and all of the subsidiaries in the ERGO Property-casualty Germany segment use yield curves without an illiquidity premium.

Most of the companies in the ERGO Life and Health Germany segment use yield curves with an illiquidity premium in the order of magnitude of the Solvency II volatility adjustment. These companies measure the bulk of their life and health primary insurance business using the variable fee approach.

Other information

Related parties

Transactions between Munich Reinsurance Company and subsidiaries that are to be deemed related parties have been eliminated in consolidation and are not disclosed in the Notes. Business relations with unconsolidated subsidiaries are of subordinate importance as a whole; this also applies to business relations with associates and joint ventures.

Munich Re's company pension obligations are implemented by several external entities; these entities are deemed related parties under IAS 24. Munich Reinsurance Company has established a contractual trust arrangement in the form of a two-way trust for its unfunded company pension obligations. In this regard, Münchener RückversicherungsGesellschaft Pensionstreuhänder e.V. is deemed a related party under IAS 24. Contributions to it are used for defined
contribution plans and defined benefit plans. Münchener Rück Versorgungskasse is also considered a related party in accordance with IAS 24. Contributions to the pension scheme are recognised as expenses for defined contribution plans.

No notifiable transactions were conducted between Board members and Munich Re.

Number of staff

The number of staff employed by the Group as at 30 June 2024 totalled 19,046 $(18,896)$ in Germany and 24,260 $(23,916)$ in other countries.

Breakdown of number of staff

	30.6 .2024	31.12 .2023
Reinsurance	16,487	16,146
ERGO	26,819	26,668
Total	$\mathbf{4 3 , 3 0 6}$	$\mathbf{4 2 , 8 1 2}$

Contingent liabilities, other financial commitments

Contingent liabilities and other financial commitments that are important for assessing the Group's financial position have not changed materially since 31 December 2023.

Earnings per share

There were no diluting effects to be disclosed separately for the calculation of earnings per share, neither in the current reporting period nor in the same period last year.

Earnings per share can potentially be diluted in future through the issue of shares or subscription rights from amounts authorised for increasing the share capital and from contingent capital.

Earnings per share

	Q1-2 2024	Q2 2024	Q1-2 2023	Q2 2023
Net result attributable to Munich Reinsurance Company equity holders	€m	3,764	1,624	2,428
Weighted average number of outstanding shares		133,816,150	133,586,824	136,806,961
Earnings per share	€	28.13	12.16	17.75

Events after the balance sheet date

In July 2024, we classified the following subsidiaries as held for sale: MR Rent UK Investment Limited, London; Bagmoor Holdings Limited, London; Bagmoor Wind Limited, London; Scout Moor Group Limited, London; Scout Moor Wind Farm Limited, London; Tir Mostyn and Foel Goch Limited, London and UK Wind Holdings Ltd, London. No value adjustments were required. The companies are largely allocated to the property-casualty reinsurance segment. We expect to sell these companies by early 2025.

Hurricane Beryl caused significant destruction in parts of the Caribbean, the Yucatán Peninsula and the US Gulf Coast, the extent of which cannot yet be definitively quantified. We currently expect losses for Munich Re to run into the low triple-digit million euro range.

Drawn up and released for publication, Munich, 7 August 2024

The Board of Management

Review report

To Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München, Munich

We have reviewed the condensed interim consolidated financial statements of Münchener RückversicherungsGesellschaft Aktiengesellschaft in München, Munich which comprise the consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, condensed consolidated cash flow statement and selected notes to the consolidated financial statements - and the interim management report of the Group for the period from 1 January to 30 June 2024, which are part of the halfyear financial report pursuant to Sec. 115 WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act). The Company's management is responsible for the preparation of the condensed interim consolidated financial statements in accordance with IFRSs on interim financial reporting as adopted by the EU and of the interim management report of the Group in accordance with the requirements of the WpHG applicable to interim group management reports. Our responsibility is to issue a report on the condensed interim consolidated financial statements and the interim management report of the Group based on our review.

We conducted our review of the condensed interim consolidated financial statements and of the interim management report of the Group in compliance with the German Generally Accepted Standards for the Review of Financial Statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform
the review to obtain a certain level of assurance in our critical appraisal to preclude that the condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with IFRSs on interim financial reporting as adopted by the EU and that the interim management report of the Group is not prepared, in all material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to making inquiries of the Company's employees and analytical assessments and therefore does not provide the assurance obtainable from an audit of financial statements. Since, in accordance with our engagement, we have not performed an audit of financial statements, we cannot issue an auditor's report.

Based on our review, nothing has come to our attention that causes us to believe that the condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with IFRSs on interim financial reporting as adopted by the EU or that the interim management report of the Group is not prepared, in all material respects, in accordance with the provisions of the WpHG applicable to interim group management reports.

Munich, 7 August 2024

EY GmbH \& Co. KG

Wirtschaftsprüfungsgesellschaft

Wagner	Dr. Ott
Wirtschaftsprüfer	Wirtschaftsprüfer
(German Public Auditor)	(German Public Auditor)

Responsibility statement

"To the best of our knowledge, and in accordance with the applicable reporting principles for half-year financial reporting and generally accepted accounting principles, the consolidated half-year financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group for the remaining months of the financial year."

Munich, 7 August 2024

Dr. Joachim Wenning

Dr. Thomas Blunck
Dr. Christoph Jurecka

Clarisse Kopff

Getre

Nicholas Gartside

Dr. Achim Kassow

Malthorbe
Mari-Lizette Malherbe

S. 17

Stefan Golfling

Dr. Markus Rieß

Supervisory Board

Dr. Nikolaus von Bomhard
(Chair)

Board of Management

Dr. Joachim Wenning
(Chair)
Dr. Thomas Blunck
Nicholas Gartside
Stefan Golling
Dr. Christoph Jurecka
Dr. Achim Kassow
Michael Kerner
Clarisse Kopff
Mari-Lizette Malherbe
Dr. Markus Rieß

Service for private investors
Shareholder service team:
Alexander Rappl, Ute Trenker
Tel.: +49 89 3891-2255
shareholder@munichre.com
Service for institutional investors and analysts
Christian Becker-Hussong
Tel.: +49 89 3891-3910
ir@munichre.com
Service for media
Stefan Straub
Tel.: +49 89 3891-9896
presse@munichre.com

(c) August 2024

Münchener Rückversicherungs-Gesellschaft (Munich Reinsurance Company) is a reinsurance company organised under the laws of Germany. In some countries, including the United States, Munich Reinsurance Company holds the status of an unauthorised reinsurer. Policies are underwritten by Munich Reinsurance Company or its affiliated insurance and reinsurance subsidiaries. Certain coverages are not available in all jurisdictions.

Any description in this document is for general information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any product.

Picture credits
Marcus Buck
Editorial note
The official German original of this report is also available from the Company. In addition, you can find our annual and interim reports, along with other current information about Munich Re and its shares, on the internet at www.munichre.com.

Important dates 2024

7 November 2024
Quarterly Statement as at 30 September 2024

Important dates 2025

26 February 2025
Balance sheet media conference for 2024 consolidated financial statements (preliminary figures)

19 March 2025
Publication of the Group Annual Report 2024
30 April 2025
Annual General Meeting
13 May 2025
Quarterly Statement as at 31 March 2025
8 August 2025
Half-Year Financial Report as at 30 June 2025
11 November 2025
Quarterly Statement as at 30 September 2025