Presentation for the quarterly media conference: Christoph Jurecka, Chief Financial Officer, Member of the Board of Management

Quarterly statement as at 30 September 2020

5 November 2020

Christoph Jurecka

Image: Klaus Ohlenschläger / dpa Picture Alliance

Quarterly statement

as at 30 September 2020

1 2 3 4

Munich Re

ERGO

Reinsurance

Outlook

Quarterly statement as at 30 September 2020

5 November 2020

2

Munich Re

1

Image: Vertigo3d / Getty ImagesiStockphoto

Munich Re - Financial highlights Q3 2020

Munich Re posts a decent Q3 result considering high major losses

Munich Re

Net result

€199m (€999m) Reinsurance result of €63m

impacted by COVID-19 related claims and other major losses - strong ERGO result of €136m

Return on investment1

2.7% (2.8%)

Reinsurance: 3.7% - benefited from disposal gains

									Q3 2020 (9M 2020)
Technical result		Investment result		Net result
€m				€m				€m
		2,431				5,826	5,308			2,490
			606	2,150 1,691			865			999
538	87				199
Q3	Q3	9M	9M	Q3	Q3	9M	9M	Q3	Q3	9M	9M
2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020

ERGO: 2.1% - impacted by equity impairments and derivative losses

Shareholders' equity

€29.6bn (-3.1% vs. 31.12.)

Return on equity1: 3.6% (5.9%)

Solvency II ratio: 216%

Reinsurance

Life and Health: Technical result incl. fee income: €56m (€160m) - Negative COVID-19 impact of ~€100m in Q3

- net result of €86m (€153m)

Property-casualty: 112.2% (106.1%) - Major-loss ratio:

26.7% (21.0%); Reserve releases2: -4.0%(-4.0%) - net result of -€23m (€446m)

ERGO

L&H Germany: RoI: 2.2% (2.6%) - net result of €31m (€99m)

Property-casualty Germany: C/R: 90.9% (92.2%) - net result of €48m (€120m)

International: C/R: 92.5% (92.6%) - net result of €57m (€162m)

1 Annualised. 2 For prior-year basic losses.

Quarterly statement as at 30 September 2020

5 November 2020

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Munich Re - Capitalisation

Capital position

Equity					€m
Equity 31.12.2019	30,576			Change in Q3
Consolidated result	999	199
Changes
Dividend		-1,373	0
Unrealised gains/losses	1,158	372
Exchange rates		-931			-651
Share buy-backs		-359	0
Other		-429			-45
Equity 30.9.2020	29,641			-125

Unrealised gains/losses	Exchange rates
Fixed-interest securities	Devaluation of various currencies,
9M: €1,885m	Q3: €306m	mainly USD
Non-fixed-interest securities
9M: -€743m	Q3: €62m

Capitalisation			€bn
	0.3	0.3	0.3	0.3
0.3	3.8			5.0
3.9	3.7
3.7

13.2		12.6		15.1
12.0	11.9
26.5	30.6	29.1	29.8	29.6
2018	2019	31.3.2020	30.6.2020	30.9.2020

Debt leverage1 (%)

Senior and other debt

Subordinated debt

Equity

1 Strategic debt (senior, subordinated and other debt) divided by total capital (strategic debt + equity).

Quarterly statement as at 30 September 2020

5 November 2020

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Munich Re - Investments

Investment portfolio

Investment portfolio1

• Portfolio management in Q3

Land and buildings 4.9 (4.7)

Miscellaneous2 8.1 (8.1)

TOTAL

€252bn

Shares, equity funds and participating interests3 5.9 (7.1)

Loans

25.8 (26.1)

Fixed-interest securities 55.4 (53.9)

• Investments in longer term US and Australian government bonds as well as short-term bank bonds and ABS at the expense of covered bonds
• Slight expansion of equity exposure despite disposal of strategic equity investments
• Ongoing increase of infrastructure and private equity investments
• Drop in reinvestment yield to 1.3%

1 Fair values as at 30.9.2020 (31.12.2019). 2 Deposits retained on assumed reinsurance, deposits with banks, investment funds (excl. equities), derivatives	Quarterly statement as at 30 September 2020	5 November 2020	6
and investments in renewable energies and gold. 3 Net of hedges: 4.8 (6.4%).

Munich Re (Group) - Investments

Investment result

€m										Q3 2020	Return1	9M 2020	Return1		9M 2019	Return1
Regular income							1,536	2.4%		4,801	2.6%	5,133		2.8%
Write-ups/write-downs							-265	-0.4%	-1,832	-1.0%		-285	-0.2%
Disposal gains/losses							644	1.0%		2,210	1.2%	1,671		0.9%
Derivatives2							-65	-0.1%	629	0.3%		-208	-0.1%
Other income/expenses						-159	-0.3%	-500	-0.3%		-485	-0.3%
Investment result							1,691	2.7%		5,308	2.8%	5,826	3.2%
Total return									3.8%					4.4%				12.1%
3-month						Write-ups/		Disposal									Write-ups/		Disposal
reinvestment yield	Q3 2020		write-downs gains/losses Derivatives	9M 2020			write-downs	gains/losses	Derivatives
Q3 2020	1.3%		Fixed income		-7	321		26		Fixed income				-22	1,358		605
Q2 2020	1.6%		Equities		-207	318		-103	Equities				-1,671	551		78
	Commodities/Inflation		-2	0		22		Commodities/Inflation	39			0		38
Q1 2020	1.9%		Other		-50	5		-10	Other				-178	301		-91

1 Annualised return on quarterly weighted investments (market values) in %. 2 Result from derivatives without regular income and other income/expenses.

Quarterly statement as at 30 September 2020

5 November 2020

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ERGO

2

Image: dem10 / iStockphoto Getty Images

ERGO

ERGO

Gross premiums written	€m
9M 2019	13,373
Foreign exchange	-28
Divestments/investments	-103
Organic change	3
9M 2020		13,245

▪ L&H Germany1 (-€194m): Positive

Major result drivers								€m
		9M 2020	9M 2019		Q3 2020	Q3 2019	
Technical result	757	656	101	476	258	218
Non-technical result		-69	-107	38		-179	-104	-75
thereof investment result	2,835	3,388	-552	807	1,156	-350
Other		-307	-210	-97	-162	-35	-126
Net result		381	339	42		136	119	17
Technical result			Investment result

development in Health and growth through

new products in Life overcompensated by

ordinary attrition of back book and COVID-19

effects in Travel

▪ P-CGermany1 (+€138m): Organic growth in

almost all business lines, mainly driven by

fire/property, liability, motor and other

insurance

▪ International (-€73m): Stable premium

development adjusting for portfolio

streamlining and run-down in Belgium (Life)

Q3: Development driven by

• L&H Germany (+€225m): Dependency between technical and investment result leading to high intra-year volatility related to COVID-19
• P-CGermany (+€11m): Strong operative performance, low NatCat losses over- compensating minor additional COVID-19 impact
• International (-€18m): Ongoing good operational performance in P-C and Health, reduced attritional claims and lower large losses

• 9M: Higher impairments in volatile capital market environment due to COVID-19, partly compensated by hedging and realisations
• Q3: Higher impairments and lower derivatives result; prior year impacted by disposal gains due to portfolio streamlining; Return on investment of 2.1%

Other

• Q3: Lower FX result in Life and Health Germany

1 Life and Health Germany (L&H Germany); Property-casualty Germany (P-C Germany).

Quarterly statement as at 30 September 2020

5 November 2020

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ERGO

ERGO Property-casualty Germany

Combined ratio

% Gross premiums written in 9M 2020 (9M 2019)

€m

• Loss ratio ◼ Expense ratio

2018	96.0	62.5	33.4
2019	92.3	60.3	32.0
9M 2020	92.2	61.6	30.6
Q3 2020	90.9	61.9	29.0

97.9	98.1
	92.1	93.2	93.4	92.5	90.9
	86.2

Other	Motor
259 (224)	617 (593)

Marine 182 (165)

TOTAL	Fire/property
€2,943m
585 (542)
(€2,804m)

Legal protection 316 (318)

Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Personal accident	Liability
449 (458)	534 (505)
2018	2019	2019	2019	2019	2020	2020	2020

Quarterly statement as at 30 September 2020

5 November 2020

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ERGO

ERGO International

Combined ratio

% Gross premiums written in 9M 2020 (9M 2019)

€m

94.5	95.4	95.0	91.8	94.8	95.2
					90.1
Q4	Q1	Q2	Q3	Q4	Q1	Q2
2018	2019	2019	2019	2019	2020	2020

9M 2020

91.7 89.6 89.7 89.4 85.5 101.4

Poland Spain Austria Baltics Greece Legal protection

Property-casualty1,985 (2,087)

92.5							TOTAL
							€3,584m
							(€3,657m)
	Q3
2020
			P-C		9M	9M	Life
92.6	thereof:	2020		2019		thereof:
Poland	1,056		1,080		Austria
					Belgium
			Legal protection	497		476
			Greece	180		173		Health
			Baltics	145		144		thereof:
					Spain
Total	Austria	79		74
		Belgium

Life 470 (507)

Health 1,129 (1,062)

9M 9M

2020 2019

1. 266

1. 114

9M 9M

2020 2019

1. 615

1. 448

Quarterly statement as at 30 September 2020

5 November 2020

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Reinsurance

3

Image: John Lund Getty Images

Reinsurance

Reinsurance - Life and Health

Gross premiums written	€m
9M 2019	8,625
Foreign exchange	-33
Divestments/investments	0
Organic change	946
9M 2020		9,538

Major result drivers								€m
		9M 2020	9M 2019		Q3 2020	Q3 2019	
Technical result	31	322	-291	10	194	-184
Non-technical result	207	369	-162	110	103	7
thereof investment result	639	866	-227	239	279	-40
Other		-85	-75	-10	-34	-15	-19
Net result	153	617	-464	86	282	-196

• Organic growth mainly in Asia and Europe, but also some growth across North America
• Asia: Several new transactions and increases of shares/volumes under existing treaties
• Europe: Positive impact from longevity transactions concluded in Q2

Technical result incl. fee income of €56m (€160m)

• COVID-19-relatedclaims of ~€100m in Q2 and again inQ3, dominated by US mortality
• In North America: non-COVID-19-related claims higher than expected and some impact from lower interest rates on claims reserves …
• … largely offset by strong results in
  Europe and Asia as well as better-than- expected performance in Australia
• Ongoing pleasing fee income

Investment result

• 9M/Q3: Disposal gains on fixed income investments from ordinary portfolio turnover clearly exceed write-downs on equities from H1
• Q3: Positive one-off effect from disposal of strategic equity investments
• Q3: Return on investment: 3.2%

Other

• FX result of -€5m in 9M (9M 2019: €83m),
  thereof -€19m in Q3 (Q3 2019: €41m)

Quarterly statement as at 30 September 2020

5 November 2020

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Reinsurance

Reinsurance - Property-casualty

Gross premiums written	€m
9M 2019	16,920
Foreign exchange	-17
Divestments/investments	0
Organic change	1,576
9M 2020		18,479

• Organic growth across almost all lines driven by business expansion and rate increases in traditional reinsurance …
• … as well as in our Risk Solutions portfolio

Major result drivers								€m
		9M 2020	9M 2019		Q3 2020	Q3 2019	
Technical result		-182	1,453	-1,635	-399	87	-486
Non-technical result	762	341	421		334	306	28
thereof investment result	1,834	1,572	261	646	715	-69
Other		-115	-259	144		42	71	-29
Net result	466	1,535	-1,069	-23	464	-486
Technical result			Investment result

• COVID-19-relatedclaims of ~€2.1bn in ▪ 9M: Gains on fixed-income/ real estate disposals

9M (thereof ~€0.7bn in Q3), contingency	and derivatives clearly exceed write-downs on
business accounts for the largest share	equities
▪ Expense ratio improved due to cost	▪ Q3: Disposal gains on fixed income and strategic
reductions and premium growth	equity investments
▪ Underlying performance remains very	▪ Q3: Return on investment: 3.9%
strong - normalised combined ratio at	Other
~97% in Q3 and 9M
	▪ FX result of €170m in 9M (9M 2019: €251m),
	thereof -€20m in Q3 (Q3 2019: €137m)

Quarterly statement as at 30 September 2020

5 November 2020

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Reinsurance

Reinsurance - Property-casualty

Combined ratio

%

◼ Basic losses

◼ Major losses

◼ Expense ratio

111.6112.2

105.1

103.9

106.0

97.3

99.9

86.9

Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
2018	2019	2019	2019	2019	2020	2020	2020

2018	99.4	53.6		11.6	34.2
	100.2
2019	51.4		15.2	33.6
	106.1
9M 2020	54.8			21.0	30.3
	112.2
Q3 2020	55.6			26.7	29.9

		Major					Reserve	Normalised
		losses		Nat cat	Man-made	releases1	combined ratio2
9M 2020	21.0	5.1	15.9	-4.0	97.0
Q3 2020	26.7	8.3	18.4	-4.0	97.0
Ø Annual	~12.0	~8.0	~4.0	~-4.0
expectation

1 Basic losses prior years, already adjusted for directly corresponding sliding-scale and profit-commission effects.	Quarterly statement as at 30 September 2020	5 November 2020	15
2 Based on reserve releases of 4%-pts. Normalised combined ratio reflects a one-off shift between commissions and non-technical result of €29m in Q3 2020

(corresponding to -0.5%-pts. in Q3 and -0.2%-pts. in 9M).

Outlook

4

Image: Klaus Ohlenschläger / dpa Picture Alliance

Outlook 2020

Group

Gross premiums written

~€54bn

ERGO

Gross premiums written1

~17.5bn

Reinsurance

Gross premiums written

~€36bn

Net result

withdrawn

Net result1

~€530m

Net result

withdrawn

Return on investment1

~3%

Combined ratio
P-C Germany1	International1
~92%	~94%

Combined ratio	Technical result, incl. fee income
Property-casualty	Life and Health
withdrawn	withdrawn

1 Substantial risk of falling short of this guidance, subject to the further development of the COVID-19 pandemic.

Quarterly statement as at 30 September 2020

5 November 2020

17

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. Obvious fluctuations in

the incidence of major losses as well as pronounced volatility of the capital markets and exchange rates - as well as the special features of IFRS accounting make an accurate forecast of results impossible. Moreover, there is considerable uncertainty regarding the further development of the coronavirus pandemic. The Company assumes no liability to update these forward-lookingstatements or to make them conform

to future events or developments. Figures from Q1 2019 onwards are restated reflecting the new cost- allocation method.

Quarterly statement as at 30 September 2020

5 November 2020

18