Half-year financial report

as at 30 June 2019

7 August 2019
Image: AdobeStock/LuckyStep
Agenda

Overview 3

1 9
Munich Re (Group)
2

3 ERGO 14

4 Reinsurance 20
5
Backup 26

Half-year financial report as at 30 June 2019 2

At the half-way stage of our 2020 strategic ambition,
we are well on track

REINSURANCE ERGO GROUP

NET RESULT NET RESULT NET RESULT
€bn €m €bn
~2.1 ~2.5
~400 1.6
1.4
220

H1 2019 Guidance 2019 H1 2019 Guidance 2019 H1 2019 Guidance 2019

Sound reserving position and low level ESP well on track – pleasing Unchanged guidance given the usual
of major losses in P-C profitability across all segments uncertainty concerning developments
in major losses in H2

Half-year financial report as at 30 June 2019 3

Consistent progress towards our 2020 strategic ambition –
Select highlights of H1 2019

REINSURANCE ERGO
 Focus on profitable organic growth  Announced merger HDFC ERGO /
INCREASE (US, cyber, niche business) Apollo Munich in India
EARNINGS  Cost savings reinvested into new  ~€200m or ~71% of 2020 target cost
business models reduction already achieved

 Global single-risk unit established,  Sale of 18 subscale subsidiaries

REDUCE pooling together ~560 employees completed
COMPLEXITY  Re-engineering and automation of  ERGO Direkt and ERV brands merged
accounting processes (~100 FTEs) under ERGO umbrella

 A good number of newly developed  SAP platform for B2B2C mobility business
DIGITAL business models and platforms already launched
TRANSFORMATION productive and ready to scale up  Proof points for robotics achieved, already
able to process ~350k transactions p.a.

The Group is building the basis to become faster, leaner and increase earnings
Half-year financial report as at 30 June 2019 4
Increasing confidence level to deliver on next year’s targets
as a basis for our mid-term strategy

Focus on our three pillars is

€2.8bn paying off, both strategically and
€2.3bn €2.5bn
financially

2018 2019 2020

Leaner, faster,
We take care of our long-term
higher profits TSR development and seek top 3
position in our peer group

Half-year financial report as at 30 June 2019 5

Our market performance since 2018 –
We are in the top 3 among our peer group

Committed to leveraging drivers of TSR … … to deliver attractive returns to our shareholders

Peer 1 46.8%

Profitable earnings growth – 31.5%

Optimising the risk-return profile
Peer 2 31.3%

Peer 3 23.4%
Sustainability criteria – TSR
Embedded in our value creation vs. peers1
Peer 4 21.9%

Peer 5 19.6%

$
€
Capital management – Peer 6 17.8%
Efficiency with high pay-outs
Peer 7 3.6%

1 Source: Datastream. Period from 1.1.2018 to 31.7.2019. Peers: Allianz, Axa, Generali, Hannover Re, Scor, Swiss Re, Zurich. Half-year financial report as at 30 June 2019 6
 Systematically integrating sustainability criteria
when creating value

ESG in Climate strategy

core business Governance

Enabling new Driving industry

technologies for a standards for climate
low-carbon economy risk management
Sustainability criteria New remuneration
deeply entrenched in Risk Asset system for the Board
our underwriting and Risk
Responsible employer
investment decisions
assessment management
transfer

Carbon neutrality of Participation in UNEP

Munich Re (Group) Withdrawal from insuring FI PSI1 Working
since 2015 new coal power plants; Group on TCFD2
no investments in coal-
intensive shares and bonds

1 United Nations Environment Programme – Finance Initiative on Principles for Sustainable Insurance. 2 Task force on climate-related financial disclosures. Half-year financial report as at 30 June 2019 7
Outlook 2019

GROUP
Gross premiums written Net result1 Return on investment
~€49bn ~€2.5bn ~ 3%

ERGO Combined ratio

Gross premiums written Net result P-C Germany International
~€17.5bn ~€0.4bn ~93% ~95%

REINSURANCE Combined ratio Life and Health

Gross premiums written Net result Property-casualty2 Technical result incl. fee income3
~€31bn ~€2.1bn ~98% ~€500m

1 Tax rate 25% or slightly below. 2 Expectation of reserve releases (basic losses) in 2019 of at least 4%-pts. 3 Substantial risk of falling short of this guidance in 2019. Half-year financial report as at 30 June 2019 8
Munich Re (Group)

Half-year financial report as at 30 June 2019 9

Munich Re (Group) – Financial highlights Q2 2019

After strong Q2 result, well underway to meet annual

guidance

MUNICH RE (GROUP) Q2 2019 (H1 2019)

Net result Technical result Investment result Net result
€m €m €m
€993m (€1,626m) 1,853 3,641
Low level of major losses in P-C 1,589 3,554 1,555 1,626
Reinsurance – Strong ERGO 1,212
993
result of €135m 1,759 1,900 728
569

Return on investment1
Q2 Q2 H1 H1 Q2 Q2 H1 H1 Q2 Q2 H1 H1
3.1% (3.0%) 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019
Solid return supports full-year
guidance – Reinvestment yield
slightly up to 2.2%
Reinsurance ERGO
Life and Health: Technical result incl. fee income: €64m L&H Germany: Strong investment result and
(€169m) – ongoing negative trend in Australia higher shareholder profit participation
Shareholders' equity Property-casualty: Combined ratio (C/R): 87.7% (92.8%) –
Property-casualty Germany:
Major-loss ratio: 4.1% (6.9%); Reserve releases for prior-
€29.5bn (+11.5% vs. 31.12.) C/R: 86.2% (91.9%) – Benign claims
year basic losses: 7.3% (5.7%)
Return on equity1: 13.6% (11.5%) July renewals: Risk-adjusted price change: ~ +0.5%, International:
Solvency II ratio: ~245% premium change: +8.9% C/R: 95.0% (95.2%); disposal loss (Turkey)

1 Annualised. Half-year financial report as at 30 June 2019 10

Munich Re (Group) – Capitalisation

IFRS capital position

Equity €m Capitalisation €bn

0.4
Equity 31.12.2018 26,500 Change in Q2
0.3 0.3
Consolidated result 1,626 993 4.2 0.3 0.3
3.9 3.7
Changes 2.8
3.7
Dividend –1,335 –1,335
Unrealised gains/losses 3,480 1,414
Exchange rates 126 –200
Share buy-backs –389 –109
Other –465 –211 12.6 13.2 12.6 12.0
Equity 30.6.2019 10.0
29,543
31.8 28.2 26.5 29.0 29.5
Unrealised gains/losses Exchange rates 2016 2017 2018 31.3.2019 30.6.2019
Fixed-interest securities FX effect mainly driven by US$
H1: €2,667m Q2: €1,301m Debt leverage1 (%)
Senior and other debt2
Non-fixed-interest securities Subordinated debt
H1: €814m Q2: €117m Equity

1 Strategic debt (senior, subordinated and other debt) divided by total capital (strategic debt + equity).
2 Other debt includes Munich Re bank borrowings and other strategic debt.
Half-year financial report as at 30 June 2019 11
Munich Re (Group) – Investments

Investment portfolio

Investment portfolio1 % Portfolio management in Q2

Land and buildings Fixed-interest securities  Ongoing geographic diversification and
4.4 (4.6) 53.9 (53.8) longer duration stabilise reinvestment yield
 Decrease of short-term investments due to
Miscellaneous2
TOTAL dividend payment
7.5 (7.7)
€245bn  Increase of infrastructure debt
Shares, equity funds and  Equity quota net of hedges 5.5% –
participating interests3 Loans derivatives position slightly expanded
6.9 (6.2) 27.4 (27.7)

Portfolio duration1 DV011,4 €m

Assets Liabilities Assets Liabilities Net
Reinsurance 5.9 (5.0) 6.4 (5.8) 41 (34) 35 (30) 6

ERGO 9.2 (8.8) 10.1 (9.2) 124 (112) 141 (120) –16

Munich Re (Group) 8.1 (7.5) 9.1 (8.2) 165 (146) 176 (150) –10
1 Market values as at 30.6.2019 (31.12.2018). 2 Deposits retained on assumed reinsurance, deposits with banks, investment funds (excl. equities), derivatives and investments in renewable
energies and gold. 3 Net of hedges: 5.5% (5.2%). 4 Market value change due to a parallel downward shift in yield curve by one basis point, considering the portfolio size of assets and
liabilities (pre-tax). Negative net DV01 means rising interest rates are beneficial.
Half-year financial report as at 30 June 2019 12
Munich Re (Group) – Investments

Investment result

€m Q2 2019 Return1 H1 2019 Return1 H1 2018 Return1

Regular income 1,848 3.0% 3,459 2.9% 3,329 2.9%
Write-ups/write-downs –98 –0.2% –181 –0.2% –256 –0.2%
Disposal gains/losses 436 0.7% 1,038 0.9% 866 0.7%
Derivatives2 –97 –0.2% –329 –0.3% –70 –0.1%
Other income/expenses –189 –0.3% –346 –0.3% –314 –0.3%
Investment result 1,900 3.1% 3,641 3.0% 3,554 3.1%
Total return 11.7% 12.1% 0.5%

3-month Write-ups/ Disposal Write-ups/ Disposal

reinvestment yield Q2 2019 write-downs gains/losses Derivatives H1 2019 write-downs gains/losses Derivatives

Q2 2019 2.2% Fixed income –9 313 174 Fixed income –17 682 189
Equities –94 60 –225 Equities –162 248 –545
Q1 2019 2.1%
Commodities/Inflation 33 0 –27 Commodities/Inflation 38 0 21
Q4 2018 2.1% Other –29 64 –19 Other –40 108 7

1 Annualised return on quarterly weighted investments (market values) in %. Impact from dividends in regular income: 0.6%-points in Q2 2019 and 0.4%-points in H1 2019
2 Result from derivatives without regular income and other income/expenses.
Half-year financial report as at 30 June 2019 13
ERGO

Half-year financial report as at 30 June 2019 14

ERGO

ERGO Life and Health Germany

Gross premiums written €m Major result drivers €m

H1 2018 4,633 H1 2019 H1 2018  Q2 2019 Q2 2018 

Technical result 198 158 40 88 67 20
Foreign exchange 0
Non-technical result 179 59 120 128 –1 128
Divestments/investments –3
thereof investment result 2,000 1,857 144 1,008 807 201
Organic change 27 Other –242 –196 –46 –143 –81 –62
H1 2019 4,658 Net result 135 21 114 72 –15 87

 Health: +€83m Technical result Other

Increase mainly driven by Travel; growth in  H1/Q2: Increase driven by higher  H1: Higher tax expenses, partly due to
comprehensive and supplementary health shareholder profit participation a positive one-off in 2018
insurance
 Q2: Negative FX result
 Digital Ventures: +€21m Investment result
Growth driven by dental tariffs and nexible  H1: Disposal gains to finance ZZR
 Life: –€79m  Q2: Negative contribution from equity
Decline in regular premiums from ordinary derivatives overcompensated by positive
attrition of back book, growth from new result from interest-rate hedging
products
 Q2: Return on investment: 3.2%

Half-year financial report as at 30 June 2019 15

ERGO

ERGO Property-casualty Germany (1)

Gross premiums written €m Major result drivers €m

H1 2018 1,947 H1 2019 H1 2018  Q2 2019 Q2 2018 

Technical result 150 92 58 127 98 29
Foreign exchange 2
Non-technical result 33 47 –14 7 27 –20
Divestments/investments 0
thereof investment result 71 77 –6 27 40 –14
Organic change 86 Other –114 –82 –32 –79 –68 –11
H1 2019 2,035 Net result 69 57 12 55 57 –2

 Organic growth driven by Fire/property Technical result Investment result

(+€37m), other insurance (+€35m, primarily H1 combined ratio of 91.9% supports annual  Q2: Strong equity markets leading to
marine) and liability (+€23m) guidance – very good C/R of 86.2% in Q2 driven losses from equity derivatives
 Positive development by earlier receipt of by:  Q2: Return on investment: 1.4%
some large contracts in broker channel  Profitable premium growth
Other
 Overall good claims experience, with large
losses below expectation  H1: Positive tax one-off in 2018
 Reversal of seasonality in premiums which  Q2: Negative FX result
had a negative impact in Q1

Half-year financial report as at 30 June 2019 16

ERGO

ERGO Property-casualty Germany (2)

Combined ratio % Gross premiums written €m

 Loss ratio  Expense ratio Other Motor
2017 97.5 64.1 33.5 267 (231) 450 (452)
2018 96.0 62.5 33.4

H1 2019 91.9 59.4 32.5

Q2 2019 86.2 54.6 31.6 Legal protection

TOTAL
Fire/property
219 (219) €2,035m 409 (372)
(€1,947m)

98.1 100.3 101.7 97.9 98.1

94.7

90.3
86.2 Personal accident Liability
309 (314) 382 (359)
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2017 2017 2018 2018 2018 2018 2019 2019
Half-year financial report as at 30 June 2019 17
ERGO

ERGO International

Gross premiums written €m Major result drivers €m

H1 2018 2,619 H1 2019 H1 2018  Q2 2019 Q2 2018 

Technical result 95 111 –16 51 63 –12
Foreign exchange –30
Non-technical result –7 54 –61 7 41 –35
Divestments/investments –53
thereof investment result 160 211 –51 81 113 –32
Organic change –16 Other –71 –57 –14 –49 –39 –11
H1 2019 2,519 Net result 16 107 –90 8 66 –58

Life: –€89m Technical result Investment result

 Russia: Disposal of life business  Q2: Higher benefits at ERGO Belgium  Disposal losses related to portfolio
 Belgium: Impacted by run-down optimisation, in particular sale of ERGO
 P-C: Profitable premium growth in Poland
 Austria: Reduced new business and expiring Turkey in Q2 (–€39m)
traditional book  Health: Strong Q2 result in Spain, reversing
negative seasonal effect of Q1  Q2: Return on investment: 1.8%
P-C: –€34m
 Overall, combined ratio in H1/Q2 in line with
Growth in Poland, Baltics and Austria more Other
than offset by divestments and FX effects full-year guidance
 Q2: Noticeable decline of FX result
Health: +€24m driven by deconsolidation effects
Premium adjustments in Belgium from 2018,
growth of individual and burial business in Spain
Half-year financial report as at 30 June 2019 18
ERGO

ERGO International

Combined ratio % Gross premiums written €m

Property-casualty Life
95.3 95.6 95.4 95.0 1,444 (1,478) 345 (434)
94.7 94.5
93.3
TOTAL
91.5
€2,519m

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Health
2017 2017 2018 2018 2018 2018 2019 2019 731 (707)

H1 2019 P-C H1 H1 Life H1 H1

112.0 2019 2018 2019 2018
95.9 93.0 97.2 98.4 thereof: thereof:
79.8 Austria 181 195
Poland 743 706
Belgium 77 88
Legal protection 320 350
Greece 120 128 Health
thereof:
Baltics 96 91
Spain Poland Greece Turkey Baltics Legal Spain 426 414
protection
Turkey 59 84 Belgium 305 293

Half-year financial report as at 30 June 2019 19

Reinsurance

Half-year financial report as at 30 June 2019 20

Reinsurance

Reinsurance Life and Health

Gross premiums written €m Major result drivers €m

H1 2018 5,174 H1 2019 H1 2018  Q2 2019 Q2 2018 
Technical result 114 296 –182 36 156 –120
Foreign exchange 166
Non-technical result 281 249 32 170 167 2
Divestments/investments 0 thereof investment result 580 510 70 340 302 38
Organic change 296 Other –60 –100 40 –51 –38 –13
H1 2019 5,636 Net result 335 444 –110 154 285 –131

 Positive FX effects mainly driven by US$ Technical result, incl. fee income of €169m Investment result
 Organic growth in Asia and Europe  Q2 negatively impacted by  Disposal gains due to shortening of
 Australia: Negative claims experience in asset duration in Canada exceeding
disability business and DAC write-off reduction in the technical result
related to “protect your super” legislation  Q2: Return on investment: 4.9%
 Canada: Shortening of asset duration
 Overall, claims experience in line with Other
expectations in all major markets except for  H1: FX result of €42m vs €5m, thereof
Australia €22m in Q2

Half-year financial report as at 30 June 2019 21

Reinsurance

Reinsurance Property-casualty

Gross premiums written €m Major result drivers €m

H1 2018 9,940 H1 2019 H1 2018  Q2 2019 Q2 2018 
Technical result 1,297 933 364 910 184 726
Foreign exchange 380
Non-technical result 104 283 –179 47 194 –147
Divestments/investments –98 thereof investment result 830 900 –70 445 496 –51
Organic change 104 Other –330 –290 –40 –253 –43 –210
H1 2019 10,327 Net result 1,071 925 146 704 335 369

 Positive FX effects mainly driven by US$ Technical result Investment result

 Sale of MSP Underwriting  Very low major losses, especially in Q2  Increased regular income and disposal
 Organic growth mainly in liability  Q2: Transactions with corresponding gains from sale of fixed income
release of basic-loss reserves and investments
particularly favourable development in  Q2: Return on investment: 2.8%
some lines of business
 Q2: Elevated normalised combined ratio Other
due to seasonality effects and adverse  H1: FX result of €114m (€1m), thereof
claims development in our North American €75m in Q2
Risk Solutions business

Half-year financial report as at 30 June 2019 22

Reinsurance

Reinsurance Property-casualty –
Combined ratio

%
160.9  Basic losses  Major losses  Expenses

2017 114.1 54.8 25.8 33.5

2018 99.4 53.6 11.6 34.2
H1 2019 92.8 52.4 6.9 33.5
Q2 2019 87.7 50.1 4.1 33.5
102.0 105.1
103.9
Major Reserve Normalised
100.7 97.9 losses Nat cat Man-made releases1 combined ratio2
88.6 87.7 H1 2019 6.9 3.5 3.3 –5.7 99.6
Q2 2019 4.1 3.1 0.9 –7.3 98.9
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Ø Annual
2017 2017 2018 2018 2018 2018 2019 2019 expectation ~12.0 ~8.0 ~4.0 ~–4.0

1 Basic losses prior years, already adjusted for directly corresponding sliding-scale and profit-commission effects. 2 Based on reserve releases of 4%-pts. Half-year financial report as at 30 June 2019 23
Reinsurance – July renewals 2019

July renewals –
Overview

Total property-casualty book1 % Regional allocation of July renewals %

Remaining business Business up for January renewal Worldwide North America
30 46 20 31
Europe TOTAL Australia
6 €3.2bn 24
Asia/Pacific/Africa Latin America
8 11
TOTAL
€20bn
Nat cat shares of renewable portfolio2 %

January 9

April 24

July 17
Business up for July renewal Business up for April renewal
16 8 Total 13

1 Gross premiums written. Management view – not fully comparable with IFRS figures. 2 Total refers to total P-C book, incl. remaining business. Half-year financial report as at 30 June 2019 24
Reinsurance – July renewals 2019

Positive price dynamic continues

July renewals 2019

% 100 –13.9 86.1 6.9 15.8 108.9  Munich Re able to continue
its growth, and in particular
€m 3,212 –445 2,767 223 507 3,497 to generate attractive new
Change in premium +8.9% business in the Americas
Thereof price movement1 ~ +0.5%  Significant price
Thereof change in exposure for our share +8.4% improvement in loss-
affected markets, stable
development elsewhere
 Overall risk-adjusted price
change of ~0.5% includes
increased loss expectations

Total renewable Cancelled Renewed Increase New Estimated

from 1 July on renewable business outcome

1 Price movement is risk-adjusted, i.e. includes claims inflation/loss trend and is adjusted for portfolio mix effects, including cancelled and new business. Half-year financial report as at 30 June 2019 25
Backup

Half-year financial report as at 30 June 2019 26

Backup: Munich Re (Group)

Premium development

Gross premiums written €m Segmental breakdown €m

Reinsurance ERGO
H1 2018 24,313 Property-casualty Life and Health Germany
10,327 (41%) ( 3.9%) 4,658 (19%) ( 0.5%)

Foreign
exchange
518

Divestments/ TOTAL ERGO

–153 Property-casualty Germany
investments €25.2bn 2,035 (8%) ( 4.5%)

Organic
change
497

Reinsurance ERGO
H1 2019 25,175 Life and Health International
5,636 (22%) ( 8.9%) 2,519 (10%) ( –3.8%)

Half-year financial report as at 30 June 2019 27

Backup: Munich Re (Group)

Reconciliation of operating result with net result

Reconciliation of operating result with net result €m

H1 2019 Q2 2019
Operating result 2,444 1,569
Other non-operating result –326 –204
Currency result 85 27
Net finance costs –110 –55
Taxes on income –466 –344
Net result 1,626 993

Other non-operating result (€m) H1 2019 Q2 2019 Tax rates (%) H1 2019 Q2 2019
Goodwill impairments –1 0 Group 22.3 25.7
Restructuring expenses –47 –43 Reinsurance 22.5 26.9
Other –278 –162 ERGO 20.7 17.5
Half-year financial report as at 30 June 2019 28
Backup: Munich Re (Group)

Actual vs. analysts’ consensus

Operating result – Actual vs. analysts’ consensus1 €m Major developments in Q2 2019

Q2 2019 Consensus Delta Reinsurance Property-casualty
Combined ratio: 87.7% (consensus: 88.8%) – major-loss ratio:
Reinsurance Property-casualty 957 993 –36 4.1%, reserve releases basic losses: 7.3%; RoI: 2.8%
Reinsurance Life and Health 205 190 15
Reinsurance Life and Health
ERGO Life and Health Germany 215 129 86 Technical result, incl. fee income of €64m;
RoI: 4.9% (disposal gains from duration shortening in Canada)
ERGO Property-casualty Germany 134 86 48
ERGO International 58 67 –9 ERGO Life and Health Germany
Good RoI of 3.2% (incl. funding of ZZR and interest-rate
Operating result 1,569 1,463 106 hedging gains), higher shareholder profit participation

ERGO Property-casualty Germany

FX 27 Combined ratio: 86.2% (consensus: 94.3%);
Other –259 RoI: 1.4% (losses from equity derivatives)

Taxes –344 ERGO International

Combined ratio: 95.0% (consensus: 96.4%);
Net result 993 997 –4 RoI: 1.8% (includes disposal loss from ERGO Turkey)

1 Simple average of estimates the Munich Re Investor Relations team has gathered from analysts covering Munich Re, not taking into account any external data providers. Half-year financial report as at 30 June 2019 29
Backup: Reinsurance

Development of combined ratio

Combined ratio vs. basic losses (%)

Combined ratio
Basic loss ratio 160.9

101.9 97.1 103.9 102.0 100.7 105.1 97.9

92.5 93.9 88.6 87.7

55.3 51.1 55.1 54.4 54.1 55.6 53.2 55.7 55.3 50.4 54.8 50.1
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Nat cat vs. man-made (%)

Nat cat ratio 70.3
Man-made ratio

10.9 5.9 12.0 11.0 10.5 14.1 5.7

3.4 4.5 2.6 3.1
3.1 3.9 3.7 1.6 4.7 0.0 –1.1 2.3 2.0 3.8 4.0 0.9
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Half-year financial report as at 30 June 2019 30

Backup: Investments

Return on investment by asset class and segment

H1 2019

Regular Write-ups/ Disposal Extraord. Other ᴓ Market

%1 income -downs result derivative result inc./exp. RoI value (€m)
Afs fixed-income 2.3 0.0 0.9 0.0 0.0 3.2 127.723
Afs non-fixed-income 5.5 –1.9 2.9 0.0 0.0 6.5 17.130
Derivatives 7.2 0.0 0.0 –32.0 0.0 –25.8 2.056
Loans 2.8 0.0 0.3 0.0 0.0 3.1 65.525
Real estate 4.8 –1.1 2.2 0.0 0.0 5.9 10.679
Other2 3.3 0.7 –0.1 0.0 0.0 –0.3 16.048
Total 2.9 –0.2 0.9 –0.3 –0.3 3.0 239.161
Reinsurance 3.0 –0.2 0.9 –0.2 –0.4 3.1 90.055
ERGO 2.8 –0.1 0.9 –0.3 –0.2 3.0 149.106

Return on investment Average 3.0%

3.6% 3.4%
3.2% 3.1% 3.1% 2.9% 2.9%
3.1%

2.7% 2.7% 2.7%

2.3%
Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

1 Annualised. 2 Including management expenses. Half-year financial report as at 30 June 2019 31

Backup: Investments

Investment result Reinsurance

Reinsurance Life and Health (€m) Q2 2019 Return1 H1 2019 Return1 H1 2018 Return1
Regular income 199 2.8% 385 2.8% 376 2.9%
Write-ups/write-downs 1 0.0% 0 0.0% –26 –0.2%
Disposal gains/losses 152 2.2% 219 1.6% 198 1.5%
Derivatives2 –3 0.0% –8 –0.1% –8 –0.1%
Other income/expenses –8 –0.1% –16 –0.1% –30 –0.2%
Investment result 340 4.9% 580 4.2% 510 4.0%
Average market value 28,012 27,562 25,698

Reinsurance Property-casualty (€m) Q2 2019 Return1 H1 2019 Return1 H1 2018 Return1

Regular income 511 3.2% 951 3.0% 888 3.0%
Write-ups/write-downs –32 –0.2% –90 –0.3% –100 –0.3%
Disposal gains/losses 100 0.6% 184 0.6% 254 0.8%
Derivatives2 –54 –0.3% –64 –0.2% –29 –0.1%
Other income/expenses –80 –0.5% –152 –0.5% –113 –0.4%
Investment result 445 2.8% 830 2.7% 900 3.0%
Average market value 63,058 62,493 60,090
1 Return on quarterly weighted investments (market values) in % p.a. 2 Result from derivatives without regular income and other income/expenses. Half-year financial report as at 30 June 2019 32
Backup: Investments

Investment result ERGO

Life and Health Germany (€m) Q2 2019 Return1 H1 2019 Return1 H1 2018 Return1
Regular income 998 3.2% 1,853 3.0% 1,799 3.0%
Write-ups/write-downs –68 –0.2% –109 –0.2% –100 –0.2%
Disposal gains/losses 180 0.6% 589 1.0% 340 0.6%
Derivatives2 –14 0.0% –180 –0.3% –34 –0.1%
Other income/expenses –88 –0.3% –153 –0.2% –149 –0.2%
Investment result 1,008 3.2% 2,000 3.2% 1,857 3.1%
Average market value 126,064 123,876 120,722

Property-casualty Germany (€m) Q2 2019 Return1 H1 2019 Return1 H1 2018 Return1

Regular income 44 2.3% 81 2.2% 76 2.2%
Write-ups/write-downs –8 –0.4% –13 –0.3% –11 –0.3%
Disposal gains/losses 13 0.7% 55 1.5% 22 0.6%
Derivatives2 –15 –0.8% –40 –1.1% –1 0.0%
Other income/expenses –6 –0.3% –12 –0.3% –9 –0.3%
Investment result 27 1.4% 71 1.9% 77 2.2%
Average market value 7,597 7,429 7,060
1 Return on quarterly weighted investments (market values) in % p.a. 2 Result from derivatives without regular income and other income/expenses. Half-year financial report as at 30 June 2019 33
Backup: Investments

Investment result ERGO

International (€m) Q2 2019 Return1 H1 2019 Return1 H1 2018 Return1

Regular income 96 2.1% 187 2.1% 190 2.2%
Write-ups/write-downs 9 0.2% 30 0.3% –19 –0.2%
Disposal gains/losses –7 –0.2% –8 –0.1% 51 0.6%
Derivatives2 –10 –0.2% –37 –0.4% 2 0.0%
Other income/expenses –6 –0.1% –13 –0.1% –13 –0.1%
Investment result 81 1.8% 160 1.8% 211 2.4%
Average market value 18,073 17,802 17,369

1 Return on quarterly weighted investments (market values) in % p.a. 2 Result from derivatives without regular income and other income/expenses. Half-year financial report as at 30 June 2019 34
Backup: Investments

Investment portfolio
Fixed-interest securities and miscellaneous

Investment portfolio % Fixed-interest securities1 %

Miscellaneous Fixed-interest securities Structured products Governments/
7.5 (7.7) 53.9 (53.8) 3 (3) Semi-government
Corporates 63 (64)
TOTAL 18 (17) TOTAL
Banks €132bn
€245bn
2 (2)
Pfandbriefe/Covered bonds Cash/Other
Loans
14 (14) 1 (0)
27.4 (27.7)

Miscellaneous % Loans1 %
Other Deposits on Loans to policyholders/ Governments/
24 (22) reinsurance mortgage loans Semi-government
Derivatives2 40 (41) 12 (12) 41 (41)
7 (9) TOTAL TOTAL
Corporates
Investment funds3 €18bn €67bn
3 (2)
11 (10) Pfandbriefe/
Bank deposits Banks Covered bonds
18 (18) 1 (2) 42 (44 )

1 Approximation – not fully comparable with IFRS figures. Market values as at 30.6.2019 (31.12.2018).
2 Non-fixed derivatives. 3 Non-fixed property funds and non-fixed bond funds
Half-year financial report as at 30 June 2019 35
Backup: Investments

Fixed-income portfolio
Total

Fixed-income portfolio %
Bank bonds Governments/
2 (2) Semi-government
53 (53)
Structured products
2 (2)

Loans to policyholders/
Mortgage loans TOTAL
4 (4) €207bn

Cash/Other
5 (5)

Corporates
12 (12)

Pfandbriefe/
Covered bonds
22 (23)
Approximation – not fully comparable with IFRS figures. Market values as at 30.6.2019 (31.12.2018). Half-year financial report as at 30 June 2019 36
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Fixed-income portfolio
Total

Rating structure % Regional breakdown %

NR1 AAA Without With Total
5 (5) 42 (43) policyholder participation 30.6.2019 31.12.2018
Germany 4.6 23.0 27.6 28.2
BB
3 (3) TOTAL US 13.0 1.8 14.8 14.3
2.4 5.4 7.8 8.1
BBB €207.2bn France

12 (12) UK 3.0 2.1 5.0 4.9

Canada 4.0 0.6 4.6 4.5
A AA
13 (13) 25 (25) Netherlands 1.4 2.9 4.3 4.5
Supranationals 0.7 3.1 3.8 3.7
Maturity structure % Spain 1.0 2.1 3.1 2.8
Australia 2.5 0.5 2.9 2.8
n.a. 0–1 years
3 (3) 9 (10) Austria 0.5 2.1 2.6 2.5
Belgium 0.6 1.6 2.2 2.3
1–3 years
AVERAGE Ireland 0.8 1.4 2.2 2.1
>10 years MATURITY 13 (13)
Poland 1.3 0.5 1.8 1.7
34 (33) 9.7 years 3–5 years
Sweden 0.2 1.3 1.5 1.6
14 (13)
Italy 0.5 0.9 1.3 1.7
7–10 years 5–7 years Other 6.6 7.8 14.4 14.2
15 (15) 13 (13)
Total 43.1 56.9 100.0 100.0
Approximation – not fully comparable with IFRS figures. Market values as at 30.6.2019 (31.12.2018).
1 Mainly loans to policyholders, mortgage loans and bank deposits.
Half-year financial report as at 30 June 2019 37
Backup: Investments

Fixed-income portfolio
Governments/semi-government

Rating structure % Regional breakdown %

BB AAA Without With Total
2 (2) 43 (43) policyholder participation 30.6.2019 31.12.2018
BBB Germany 3.1 21.6 24.8 25.1
7 (7) TOTAL US 14.0 1.4 15.4 15.6
1.3 5.8 7.1 6.9
A €109.9bn Supranationals
16 (15) Canada 5.7 0.7 6.4 6.2
France 2.0 2.3 4.2 4.6
AA
33 (33) Spain 1.3 2.9 4.2 3.7
Belgium 1.0 2.9 3.9 3.9
Maturity structure % Australia 3.8 0.1 3.8 3.6
Austria 0.6 2.7 3.3 3.4
>10 years 0–1 years
44 (42) 7 (10) Poland 2.2 0.9 3.2 3.1
UK 2.8 0.0 2.8 2.7
1–3 years
AVERAGE Finland 0.3 1.8 2.1 2.2
MATURITY 12 (13)
Netherlands 0.6 1.3 1.9 2.2
11.0 years 3–5 years
Ireland 0.4 1.2 1.6 1.7
11 (10)
Italy 0.5 1.0 1.4 2.1
7–10 years 5–7 years Other 7.7 6.2 13.9 13.0
15 (15) 11 (10)
Total 47.2 52.8 100.0 100.0
Approximation – not fully comparable with IFRS figures. Market values as at 30.6.2019 (31.12.2018). Half-year financial report as at 30 June 2019 38
Backup: Investments

Fixed-income portfolio
Pfandbriefe/covered bonds

Rating structure % Regional breakdown %

NR AAA 30.6.2019 31.12.2018
Germany 36.5 37.7
1 (1) 74 (74) France 19.0 19.7
BBB UK 9.4 8.4
0 (1) TOTAL Netherlands 8.0 7.8
Sweden 6.0 6.0
A €46.4bn Norway 5.4 5.7
2 (4) Spain 1.9 2.0
Italy 1.1 1.0
AA Ireland 0.3 0.3
23 (21) Other 12.3 11.5

Maturity structure % Cover pools %

>10 years 0–1 years Mixed and other Mortgage
22 (25) 6 (7) 10 (10) 61 (61)
1–3 years
AVERAGE
MATURITY 13 (12) TOTAL

7.0 years 3–5 years €46.4bn

18 (18)
7–10 years 5–7 years Public
21 (19) 19 (19) 29 (29)
Approximation – not fully comparable with IFRS figures. Market values as at 30.6.2019 (31.12.2018). Half-year financial report as at 30 June 2019 39
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Fixed-income portfolio
Corporate bonds (excluding bank bonds)

Rating structure % Regional breakdown %

NR AAA 30.6.19 31.12.18
0 (1) 2 (2) Utilities 14.1 16.2
<BB Industrial goods and services 14.0 13.7
2 (2) TOTAL AA
Oil and gas 11.9 11.9
BB €25.5bn 4 (4)
12 (12) Financial services 9.6 9.0
BBB A Telecommunications 7.9 7.9
60 (60) 20 (20) Healthcare 7.7 7.3
Maturity structure % Technology 6.0 4.8
>10 years 0–1 years Food and beverages 4.0 3.7
24 (21) 10 (10) Media 3.9 4.1
AVERAGE Automobiles 3.2 3.0
7–10 years MATURITY 1–3 years
Personal and household goods 3.2 3.7
14 (13) 7.4 years 19 (19)
Retail 3.2 3.3
5–7 years 3–5 years Basic resources 3.1 2.7
14 (16) 20 (22) Other 8.3 8.7
Approximation – not fully comparable with IFRS figures. Market values as at 30.6.2019 (31.12.2018). Half-year financial report as at 30 June 2019 40
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Fixed-income portfolio
Bank bonds

Rating structure % Regional breakdown %

Total
NR AA Senior bonds Subordinated Loss-bearing 30.6.2019 31.12.2018
1 (0) 13 (12) US 35.1 6.4 0.4 41.9 43.4
Canada 8.3 1.5 0.0 9.8 5.4
<BB Ireland 9.6 0.0 0.0 9.6 8.6
0 (0) TOTAL Germany 4.3 0.6 4.6 9.6 11.8
UK 6.9 0.6 0.0 7.5 7.8
BB €3.6bn France 2.9 0.8 1.4 5.1 4.8
6 (5) Guernsey 2.7 0.0 0.0 2.7 2.6
Australia 2.3 0.0 0.0 2.3 1.1
BBB A Netherlands 1.5 0.1 0.0 1.6 1.4
34 (42) 46 (40) Other 8.2 1.5 0.1 9.8 13.1

Maturity structure % Investment category of bank bonds %

>10 years 0–1 years Loss-bearing1 Senior
2 (4) 30 (25) 7 (7) 82 (80)
AVERAGE
7–10 years 1–3 years TOTAL
MATURITY
6 (9) 2.8 years 29 (31) €3.6bn

5–7 years 3–5 years Subordinated2

7 (5) 26 (25) 11 (13)
1 Classified as Tier 1 and upper Tier 2 capital for Solvency purposes. 2 Classified as lower Tier 2 and Tier 3 capital for Solvency purposes.
Approximation – not fully comparable with IFRS figures. Market values as at 30.6.2019 (31.12.2018).
Half-year financial report as at 30 June 2019 41
Backup: Investments

Fixed-income portfolio
Structured products

Structured products portfolio (at market values): Breakdown by rating and region €m
Rating Region
AAA AA A BBB <BBB NR USA + RoW Europe Total Market-to-par
ABS Consumer-related ABS1 207 46 14 27 0 0 179 115 294 101%
Corporate-related ABS2 4 3 326 45 0 0 0 378 378 100%
Subprime HEL 1 0 0 0 0 0 1 0 1 96%
CDO/ Subprime-related 0 0 0 0 0 0 0 0 0 0%
CLN
Non-subprime-related 554 1,131 56 18 0 9 515 1,254 1,769 100%
MBS Agency 925 28 0 0 0 0 953 0 953 104%
Non-agency prime 14 27 1 0 0 0 1 41 42 100%
Non-agency other (not subprime) 95 33 2 0 0 0 24 106 130 99%
Commercial MBS 467 21 0 0 3 0 444 46 490 104%
Total 30.6.2019 2,266 1,289 399 90 3 9 2,117 1,940 4,057 101%
In % 56% 32% 10% 2% 0% 0% 52% 48% 100%
Total 31.12.2018 2,217 1,264 378 89 0 0 2,107 1,840 3,947 100%

1 Consumer loans, auto, credit cards, student loans. 2 Asset-backed CPs, business and corporate loans, commercial equipment.
Approximation – not fully comparable with IFRS figures. Market values as at 30.6.2019 (31.12.2018).
Half-year financial report as at 30 June 2019 42
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Sensitivities to interest rates, spreads and equity markets

Sensitivity to risk-free interest rates – Basis points –50 –25 +50 +100
Change in gross market value (€bn) +8.7 +4.3 –8.0 –15.4
Change in on-balance-sheet reserves, net (€bn)1 +2.2 +1.1 –2.0 –3.9
Change in off-balance-sheet reserves, net (€bn)1 +0.4 +0.2 –0.4 –0.7
P&L impact (€bn)1 +0.1 +0.1 –0.1 –0.2

Sensitivity to spreads2 (change in basis points) +50 +100

Change in gross market value (€bn) –5.9 –11.3
Change in on-balance-sheet reserves, net (€bn)1 –1.4 –2.7
Change in off-balance-sheet reserves, net (€bn)1 –0.3 –0.5
P&L impact (€bn)1 –0.1 –0.2

Sensitivity to equity and commodity markets3 –30% –10% +10% +30%

Change in gross market value (€bn) –5.5 –1.8 +1.8 +5.5
Change in on-balance-sheet reserves, net (€bn)1 –1.4 –0.6 +0.9 +2.8
Change in off-balance-sheet reserves, net (€bn)1 –0.9 –0.3 +0.3 +1.0
P&L impact (€bn)1 –1.4 –0.4 –0.0 –0.0
1 Rough calculation with limited reliability assuming unchanged portfolio as at 30.6.2019. After rough estimation of policyholder participation and deferred tax; linearity of relations cannot be
assumed. Approximation – not fully comparable with IFRS figures. 2 Sensitivities to changes of spreads are calculated for every category of fixed-interest securities, except government securities Half-year financial report as at 30 June 2019
with AAA ratings. 3 Worst-case scenario assumed, including commodities: impairment as soon as market value is below acquisition cost. Approximation – not fully comparable with IFRS figures.
43
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On- and off-balance-sheet reserves

€m 31.12.2017 31.12.2018 31.3.2019 30.6.2019  in Q2

Market value of investments 231,885 231,876 240,484 245,124 4,640
Total reserves 25,395 22,002 27,612 32,839 5,227
On-balance-sheet reserves
Fixed-interest securities 7,622 4,953 7,856 10,927 3,071
Non-fixed-interest securities 3,261 1,817 2,984 3,194 210
Other on-balance-sheet reserves1 189 207 215 213 –2
Subtotal 11,072 6,977 11,055 14,333 3,278
Off-balance-sheet reserves
Real estate2 2,744 4,769 4,781 4,822 41
Loans3 10,788 9,453 11,093 12,965 1,872
Associates 792 803 683 719 36
Subtotal 14,323 15,024 16,556 18,506 1,949
Reserve ratio 11.0% 9.5% 11.5% 13.4% 1.9%-pts.

1 Unrealised gains/losses from unconsolidated affiliated companies, valuation at equity and cash-flow hedging.
3 Excluding insurance-related loans.
2 Excluding reserves from owner-occupied property. Half-year financial report as at 30 June 2019 44
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On- and off-balance-sheet reserves

€m On-balance-sheet reserves Off-balance-sheet reserves1

Total reserves (gross) 14,333 18,506
Provision for deferred premium refunds –6,195 –11,426
Deferred tax –1,724 –2,206
Minority interests –6 0
Consolidation and currency effects –205 0
Shareholders' stake 6,204 4,874

1 Excluding reserves for owner-occupied property and insurance-related loans. Half-year financial report as at 30 June 2019 45
Backup: Shareholder information

Changes to shares in circulation

Acquisition of Retirement of Weighted average number of shares in circulation

Shares 31.12. own shares in own shares in 30.6.
(millions) 2018 H1 2019 H1 2019 2019 (millions)

Shares in
145.8 –1.9 – 143.9 154.1
circulation 148.7 144.7 144.2

Treasury
shares
3.7 1.9 –5.2 0.4

Total 149.5 – –5.2 144.3

2017 2018 H1 2019 Q2 2019

Half-year financial report as at 30 June 2019 46

Backup: Shareholder information

Financial calendar

2019
7 NOVEMBER Quarterly statement as at 30 September 2019

2020
Balance sheet media conference for 2019 financial statements
28 FEBRUARY Analysts' and Investors' call

18 MARCH Annual report (Group), Annual report (Company)

29 APRIL Annual General Meeting 2020

7 MAY Quarterly statement as at 31 March 2020

6 AUGUST Half-year financial report as at 30 June 2020

5 NOVEMBER Quarterly statement as at 30 September 2020

Half-year financial report as at 30 June 2019 47

Shareholder information

For information, please contact

Investor Relations Team

Christian Becker-Hussong Thorsten Dzuba Christine Franziszi
Head of Investor & Rating Agency Relations Tel.: +49 (89) 3891-8030 Tel.: +49 (89) 3891-3875
Tel.: +49 (89) 3891-3910 E-mail: tdzuba@munichre.com E-mail: cfranziszi@munichre.com
E-mail: cbecker-hussong@munichre.com

Ralf Kleinschroth Andreas Silberhorn (Rating agencies) Ingrid Grunwald (ESG)

Tel.: +49 (89) 3891-4559 Tel.: +49 (89) 3891-3366 Tel.: +49 (89) 3891-3517
E-mail: rkleinschroth@munichre.com E-mail: asilberhorn@munichre.com E-mail: igrunwald@munichre.com

Angelika Rings (ERGO)

Tel.: +49 (211) 4937-7483
E-mail: angelika.rings@ergo.de

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

Half-year financial report as at 30 June 2019 48

Disclaimer

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

Half-year financial report as at 30 June 2019 49