Development of the claims reserve in the property-casualty segment1 2020 Prev. year €m
Balance at 31 Dec. previous year 57,809 –2,700 55,109 53,937 –2,776 51,161 Currency translation differences –3,014 187 –2,827 1,045 –67 979 Changes in consolidated group/Other –4 0 –4 –228 76 –152 Claims expenses
Total claims expenses 21,200 –733 20,467 17,750 –574 17,176 Unwinding of discount 33 –1 32 40 –1 39 Less payments
Total payments –17,176 614 –16,563 –14,735 642 –14,094 Balance at 31 Dec. financial year 58,848 –2,634 56,214 57,809 –2,700 55,109 1 Comprises the segments property-casualty reinsurance, ERGO Property-casualty Germany and the property-casualty section of the ERGO International segment.
€m Accident year Date ≤ 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total 31 Dec. 2010 52,015 31 Dec. 2011 51,373 16,847 31 Dec. 2012 50,174 16,950 13,845 31 Dec. 2013 49,777 16,688 13,604 13,739 31 Dec. 2014 48,890 16,305 13,423 13,935 13,646 31 Dec. 2015 47,804 16,176 13,228 13,905 13,673 12,927 31 Dec. 2016 47,257 15,725 13,194 13,629 13,667 12,977 13,791 31 Dec. 2017 46,964 15,703 13,094 13,560 13,462 12,780 13,642 16,696 31 Dec. 2018 46,130 15,427 12,847 13,277 13,211 12,572 13,689 16,710 16,979 31 Dec. 2019 44,974 15,169 12,627 13,129 13,029 12,429 13,515 16,598 17,800 17,936 31 Dec. 2020 44,265 15,019 12,440 12,773 12,821 12,318 13,174 16,523 18,155 18,421 21,022 196,932 Net run-off result 7,749 1,828 1,405 966 825 609 617 173 –1,177 –484 n/a 12,511 Change 2019 to 2020 708 150 187 356 208 111 341 74 –355 –484 n/a 1,295
The ultimate loss of an accident year comprises all payments made for that accident year up to the reporting date, plus the claims reserve at the reporting date. Given complete information regarding all losses incurred up to the end of the reporting period, the ultimate-loss status for each accident-year period would remain the same. In practice, however, the ultimate-loss status (based on estimates) is exposed to fluctuations that reflect the growth in knowledge about the claims cases. Changes in the consolidated group, especially new acquisitions or the composition of reportable segments, can also have an influence on the ultimate-loss status.
Breakdown of other technical provisions €m 31.12.2020 Prev. year Provision for premium refunds based on national regulations
5,379 4,788 Provision for profit commissions 623 611 Other 168 132 Total (gross) 22,478 21,011
Development of provision for deferred premium refunds €m 2020 Prev. year Status at 31 Dec. previous year 10,957 8,041 Changes in consolidated group 0 216 Change resulting from unrealised gains and losses on investments (recognised directly in equity)
829 2,915 Change resulting from other remeasurements (recognised in profit or loss)
To determine the portion of the valuation differences allocable to the provision for deferred premium refunds, rates of between 50% and 92.5% after tax were used.
Development of gross provisions €m 2020 Prev. year Balance at 31 Dec. previous year 8,172 7,925 Changes in consolidated group/Other –21 5 Savings premiums 473 510 Unrealised gains/losses on fund assets 41 1,044 Withdrawal for expenses and risk –34 –32 Withdrawal for benefits –676 –1,279 Balance at 31 Dec. financial year 7,955 8,172
Breakdown of other provisions €m 31.12.2020 Prev. year Provisions for post-employment benefits
Provisions for post-employment benefits and similar obligations Munich Re companies generally give pension commitments to their employees in the form of defined contribution plans or defined benefit plans. Special regional economic, legal and tax features are taken into account. The type and amount of the pension obligations are determined by the conditions of the respective pension plan. The pension commitments comprise obligations towards active members or retired members with vested benefits, and current pension payments. Defined benefit plans are funded internally through provisions for post-employment benefits, and externally through funds or insurance contracts concluded to cover the benefit obligations.
Expenses for defined contribution plans in the year under review totalled €65m (68m), and expenses for contributions to state plans amounted to €114m (111m).
The present value of obligations under defined benefit pension plans amounts to €7,742m (7,067m), and the plan assets to be deducted total €4,067m (3,746m). Defined benefit plans comprise the following main plans: Munich Reinsurance Company’s pension obligations account for €1,927m (1,677m) of the present value of obligations under defined benefit pension plans and €2,174m (1,908m) of plan assets. The obligations include disability and old-age pensions, and pensions for surviving dependants. The amount of the pensions generally depends on salary and length of service. The defined benefits granted up to 31 December 2007 are financed through a fund. New members on or after 1 January 2008 receive pension commitments in the form of defined contribution plans financed by means of insurance contracts securing the obligations under pension schemes. The fund and insurance contracts have been grouped in a contractual trust agreement (CTA).
ERGO Group’s pension obligations account for €4,193m (3,784m) of the present value of obligations under defined benefit pension plans and €553m (501m) of plan assets. The obligations include disability and old-age pensions, and pensions for surviving dependants. The amount of the pensions generally depends on salary and length of service. The commitments are generally funded through pension provisions. New members receive pension commitments in the form of defined contribution plans financed by means of intra-Group insurance contracts securing the obligations under pension schemes. There are also medical-care benefit obligations.
The present value of medical-care benefit obligations amounted to €363m (324m) at the end of the reporting period.
% 31.12.2020 Prev. year Active members 49 49 Deferred members 17 17 Pensioners 34 34 Total 100 100
In the eurozone, the actuarial interest rate was 0.20% (0.75%) as at 31 December 2020. The actuarial losses from changes in financial assumptions amounting to €576m (1,098m) primarily arose from the reduction in the actuarial interest rate.
Development of the fair value of plan assets for defined benefit plans €m 2020 Prev. year Balance at 31 Dec. previous year 3,746 3,301 Currency translation differences –88 45 Changes in consolidated group –1 –1 Interest income 50 80 Return excluding interest income 386 348 Contributions by the employer 71 66 Contributions by plan participants 1 1 Payments –80 –83 Payments from plan settlements –1 –11 Transfer of assets –15 0 Other –2 –1 Balance at 31 Dec. financial year 4,067 3,746
% 31.12.2020 Prev. year Quoted market price in an active market
% 31.12.2020 Prev. year No quoted market price in an active market
Cash or cash equivalents 1 0 Real estate 0 1 Fixed-interest securities 0 0 Non-fixed-interest securities 2 3
Funded status of defined benefit plans €m 31.12.2020 Prev. year Obligations funded through provisions
Development of the provision for defined benefit plans €m 2020 Prev. year Balance at 31 Dec. previous year 3,748 2,992 Currency translation differences –26 8 Changes in consolidated group 0 –1 Expenses 198 200 Payments –84 –80 Payments from plan settlements –1 0 Capital transfer to plan assets –72 –67 Transfer of assets 0 0 Transfer to other receivables 22 42 Actuarial gains/losses recognised in equity
Other 36 57 Balance at 31 Dec. financial year 4,121 3,748
The actual return on plan assets amounted to €436m (428m), and the actual gains on reimbursements to €36m (53m).
Contractual period to maturity of pension obligations €m 31.12.2020 Prev. year Up to one year 171 167 Over one year and up to five years 761 762 Over five years and up to ten years 1,061 1,076 Over ten years and up to twenty years 2,439 2,514 Over twenty years 5,022 5,519 Total 9,455 10,038
The weighted average contractual period to maturity of our pension obligations is 21 (20) years.
Miscellaneous provisions €m Prev. year Additions Withdrawals Reversal Other changes 31.12.2020 Restructuring 361 56 –82 –39 0 296 Commissions 193 2,094 –2,075 –7 –4 201 Multi-year variable compensation 152 65 –39 –79 –4 95 Early retirement benefits/semi-retirement 149 32 –22 0 –8 152 Salary obligations and other remuneration for desk and field staff
The amounts payable on primary insurance business mainly contain liabilities towards policyholders resulting from accumulated participation in surplus, premium deposits and primary insurance contracts with nonsignificant risk transfer.
For more information on the interest paid for liabilities from leases in the 2020 financial year, please refer to (36) Other operating result. See (29) Liabilities from financing activities for information on cash outflows for leases in 2020.
Of the amounts due to banks, €63m (78m) is attributable to bank borrowing by Group companies acquired by Munich Re under its infrastructure investment strategy. The fair value of the debts owed to credit institutions at the end of the reporting period amounted to €1,028m (567m).
The miscellaneous liabilities contain liabilities of €6,827m (5,166m) resulting from reinsurance treaties with nonsignificant risk transfer, derivative financial instruments with a negative fair value of €808m (604m), and negative fair values totalling €2,519m (1,122m) for insurance-linked derivatives and hedging derivatives of variable annuities. The miscellaneous liabilities also include €25m (26m) for social security and €19m (32m) for interest and rent.
Maturity analysis of future cash flows from other liabilities €m Non-derivative liabilities Derivative liabilities 31.12.2020 Prev. year 31.12.2020 Prev. year Up to one year 11,912 9,183 435 470 Over one year and up to two years 2,417 257 –17 7 Over two years and up to three years 347 2,626 26 8 Over three years and up to four years 1,187 274 8 36 Over four years and up to five years 854 298 62 30 Over five years and up to ten years 1,477 1,867 602 359 Over ten years 346 356 1,941 665 Total 18,540 14,861 3,056 1,575
Given that the majority of other liabilities have a period to maturity of less than one year, the fair values largely correspond to the carrying amounts. The miscellaneous liabilities include liabilities of €6,827m (5,166m) resulting from reinsurance treaties with non-significant risk transfer. These usually have longer periods to maturity to match the cover and run-off periods of the underlying risks. Their fair value amounted to €7,609m (5,166m). We allocate these to Level 3 of the fair value hierarchy, as their measurement is primarily based on biometric and lapse rates and historical event data.
Balance at 31 Decmber financial year 1,022 557 5,320 4,136 402 374 6,743 5,068
Ceded premiums written –2,550 –2,650 Change in unearned premiums – Ceded share
Premiums from long-term insurance business, especially in life primary insurance, are recognised in full as earned premiums and income when they become due. Under gross premiums written, only those parts of the premium from unit-linked life business are included that are used to cover the risks and associated costs.
Of the gross premiums written from short-term insurance business, the portions attributable to periods after the end of the reporting period are recognised as unearned premiums; see (20) Unearned premiums. Over the duration of the contracts, unearned premiums are reversed in accordance with the reduction in risk.
In addition to premiums, Munich Re receives revenues within the meaning of IFRS 15, Revenue from Contracts with Customers, which essentially derive from technical engineering and inspection services, investment management services, and from services in connection with the generation of electricity from renewable energy sources and with the provision of insurance-related software. The income from these services is largely recognised for the period in question. The volume of this revenue under IFRS 15 is around 1% of gross premiums written.
Provision for future policy benefits –331 –774 Provision for outstanding claims –5,174 –3,441 Provision for premium refunds –1,681 –1,876
Other technical result –129 –125 Gross expenses for claims and benefits
Provision for future policy benefits 500 432 Provision for outstanding claims 93 –99 Provision for premium refunds 0 0
In reinsurance, COVID-19-related losses amounted to €3,436m, of which €370m was attributable to life and health reinsurance and slightly over €3bn to propertycasualty reinsurance. At ERGO, the negative impact arising from COVID-19 totalled €64m.
Operating expenses €m 2020 Prev. year Gross Acquisition costs, profit commission and reinsurance commission paid
Investments in affiliated companies –49 10 Investments in associates and joint ventures
Loans 2,240 2,070 Other securities available for sale Fixed-interest 4,281 4,214 Non-fixed-interest 62 1,475 Other securities at fair value through profit or loss
The result for land and buildings includes rental income of €563m (513m). The expenses for the management of investments include running costs and expenses for repair and maintenance of property totalling €64m (103m). We earned interest income of €1,708m (1,857m) on loans. Other securities available for sale produced regular income of €3,407m (3,696m), while derivatives generated €128m (146m). Interest expenses on non-derivative investments amounted to €15m (11m), administrative expenses to €385m (363m), and other expenses to €148m (126m).
Other operating income mainly comprises income of €634m (684m) from services rendered, interest income of €79m (109m), income of €187m (84m) from the release/reduction of miscellaneous provisions and provisions for bad and doubtful debts, and income of €32m (34m) from owner-occupied property, some of which is also leased out.
Other operating expenses include expenses of €612m (672m) for services rendered and interest charges of €116m (142m), thereof €8m (7m) from leases. In addition, they mainly include other impairment losses of €43m (108m), as well as other tax of €124m (138m) and expenses of €16m (15m) for owner-occupied property, some of which is also leased out.
The other operating result also includes a large share of the result from reinsurance treaties with non-significant risk transfer totalling €137m (115m). A total of €136m (114m) derives from the life and health reinsurance segment.
This item shows the corporation tax and municipal trade earnings tax paid by the German consolidated companies (including solidarity surcharge) and the comparable taxes on earnings paid by the foreign consolidated companies in the Group. The determination of taxes on income includes the calculation of deferred taxes.
The following table shows the reconciliation between the expected taxes on income and the tax on income actually shown. The expected tax expenses are calculated by multiplying the consolidated result before taxes on income (after “other tax”) by the Group tax rate. The applicable Group tax rate amounts to 33%. This takes into account corporation tax including solidarity surcharge, and trade tax (GewSt). The municipal trade-tax multipliers range from 240% to 490%.
Group tax rate in % 33 33 Derived taxes on income –489 –1,053 Tax effect of: Tax rate differences 31 300 Tax-free income –82 258 Non-deductible expenses –121 –181 Valuation allowances for deferred taxes/loss carry-forwards
Tax for prior years 394 273 Trade tax adjustments 32 –1 Other –89 –85
The effective tax burden is the ratio between the Taxes on income shown and the Result before taxes on income (after “other tax”). In the 2020 financial year, the tax burden was 18.2% (previous year: 15.1%).
Munich Re’s reporting is based on various legal regulations governing risks it is exposed to as a result of its business operations: In the Notes to the financial statements, risks from insurance contracts must be reported in accordance with IFRS 4 and risks from financial instruments in accordance with IFRS 7. Further disclosures on risks are required in the risk report in the combined management report on the basis of Section 315 (2) no. 1 of the German Commercial Code (HGB) and German Accounting Standard no. 20 (DRS 20) for management reports.
Our main market risk exposure with regard to our technical provisions is interest-rate risk. A distinction must be made between risks of changes in interest rates on the one hand and interest-rate guarantee risks on the other. Risks of changes in interest rates would result from the discounting of the provision for future policy benefits and of parts of the provision for outstanding claims. In accordance with accounting valuation rules, the discount rate is fixed at contract commencement and will generally not be adjusted during the term of the contract. To this extent, the accounting valuation of these technical provisions does not depend directly on the level of the market interest rates. Economically, however, an interest-rate risk derives in principle from the need to earn a return on the investments covering the provision that is commensurate with the discount rate used in measuring the provision.
€m 31.12.2020 Prev. year Without discount rate 4,298 3,907 Discount rate ≤ 2.0% 1,195 1,055 2.0% < discount rate ≤ 3.0% 2,948 2,587 3.0% < discount rate ≤ 4.0% 4,055 4,362 4.0% < discount rate ≤ 5.0% 2,866 3,138 5.0% < discount rate ≤ 6.0% 1,462 1,573 6.0% < discount rate ≤ 7.0% 94 97 7.0% < discount rate ≤ 8.0% 423 476 Discount rate > 8.0% 230 247 Covered by deposits retained on assumed reinsurance
In life primary insurance, an implicit or explicit interestrate guarantee is granted for the majority of contracts over their whole duration, based on a fixed interest rate applying at the time the contract is concluded. This exposes the insurance to an interest-guarantee risk. The discount rate used to calculate the provision for future policy benefits is identical with the guaranteed interest rate for the majority of contracts in our portfolios. An appropriate minimum return needs to be earned in the long term from the investment result (possibly also with assistance from the technical result) for the contractually guaranteed benefits. Given that the investments, as a rule, have a shorter duration than the insurance commitments, there is a reinvestment risk. As regards premiums yet to be received, the investment of these amounts involves a certain amount of risk. We counter these risks using our asset-liability management.
The current sustained period of low interest rates is a strain for life primary insurers whose portfolio includes classical guaranteed products. Our life primary insurers address the risks arising from such a phase of low interest rates by pursuing an investment strategy that is geared to the long term and also comprises derivative financial instruments. Furthermore, they take account of these special capital market conditions in their asset-liability management. The additional interest reserve that has already been built up is another tool for ensuring that the interest liabilities assumed are met during low-interestrate periods, and it has a risk-mitigating effect.
Life Health Total €m 31.12.2020 Prev. year 31.12.2020 Prev. year 31.12.2020 Prev. year Without discount rate 4,205 4,231 1,753 1,624 5,959 5,854 Discount rate ≤ 2.0% 7,252 6,805 2,304 2,142 9,556 8,947 2.0% < discount rate ≤ 3.0% 21,517 21,563 16,260 14,246 37,777 35,809 3.0% < discount rate ≤ 4.0% 30,109 30,989 15,144 14,612 45,253 45,601 4.0% < discount rate ≤ 5.0% 827 889 3,615 4,963 4,442 5,852 Discount rate > 5.0% 2 2 0 0 2 2 Total 63,912 64,478 39,076 37,587 102,988 102,066
For the unit-linked life insurance contracts in our portfolio, the investments are held for the benefit of life insurance policyholders who bear the investment risk, meaning that there is no direct market risk. Appropriate product design ensures that the necessary premium portions for payment of a guaranteed minimum benefit on occurrence of death are based on the current fund assets.
At the balance sheet date, this results in the expected future technical payment balances (including variable annuities) shown in the following table according to duration bands. As only the technical payment flows are considered, inflows from investment income and investments that become free are not included in the quantifications.
With these numerical estimates, it should be borne in mind that this forward-looking data may involve considerable uncertainty.
The degree of exposure to premium risks differs according to class of business and also between primary insurance and reinsurance. On the basis of the loss ratios and combined ratios of past years shown in the following table, conclusions can be drawn about the historical volatilities in the different classes of business and about possible interdependencies. The differences in volatility are due equally to fluctuations in claims expenditure and fluctuations in the respective market-price level for the covers granted.
Premiums, loss ratios and combined ratios by class of business 2020 2019 2018 2017 2016 Gross premiums written in €m Reinsurance
Liability 4,473 3,703 3,384 3,013 2,911 Accident 306 416 372 393 316 Motor 5,268 5,291 5,367 3,978 3,943 Marine, aviation, space 1,899 1,617 1,388 1,268 1,308 Fire 5,962 5,064 4,761 4,308 4,375 Engineering 1,565 1,453 1,315 1,311 1,438 Credit and surety 849 787 657 634 641 Other classes of business 4,292 3,760 3,192 2,938 2,895
Reinsurance Liability 87.6 64.8 71.3 84.8 73.2 Accident 76.8 68.0 10.4 58.0 74.2 Motor 67.8 67.6 71.4 77.0 72.3 Marine, aviation, space 55.4 80.6 40.8 50.3 56.7 Fire 63.3 73.6 69.9 109.5 59.7 Engineering 44.5 40.6 48.5 60.1 48.3 Credit and surety 69.1 20.7 46.0 59.7 71.1 Other classes of business 105.8 71.6 69.2 71.0 55.1
ERGO 59.4 58.6 58.7 59.8 59.7 Combined ratio in % Reinsurance
In the pricing of risks assumed in the accident, fire and marine lines of business, and also in sections of engineering reinsurance and ERGO, there is a high degree of sensitivity regarding the underlying assumptions about natural catastrophes. The following table therefore shows the combined ratios for property-casualty reinsurance including and excluding natural catastrophe losses.
Excluding natural catastrophes 1 In 2012, our segment reporting was modified and no longer has a consolidation column. The figures for the previous year have been adjusted accordingly. 2 The figure for 2011 is not adjusted for relief of 1.4 percentage points from economic risk transfer to the capital markets.
Major losses, by which we mean individual losses exceeding €10m, are of particular relevance for the volatility of property-casualty business in reinsurance. The analysis below shows that the volatility of the individual years in this loss category is mainly attributable to the respective intensity of natural catastrophe losses. As a rule, the other accumulation risks exhibit a distinctly less volatile pattern, although the coronavirus pandemic led to significantly higher major-loss expenditure of €3,066m in the financial year.
Further information on risks from large and accumulation losses can be found in the combined management report in the section on business performance, and in the risk report.
The provision for outstanding claims is subject to a reserve risk, i.e. the risk that actual claims settlement may be less than or exceed the amount reserved.
For Munich Re, liquidity risks could arise if the cash outflow for insurance claims payments and the costs related to the business were to exceed the cash inflow from premiums and investments. The following table shows that in the past calendar years the liquidity situation in underwriting has always been positive. Besides this, we also have extensive, sufficiently liquid investments available to fulfil our liquidity obligations.
€m 2020 2019 2018 2017 2016 Premiums received 31,361 28,857 27,130 24,293 23,786 Claims payments for financial year –5,321 –5,091 –5,901 –5,360 –5,882 Claims payments for previous years –12,007 –9,846 –8,873 –6,675 –8,545 Costs –9,667 –9,511 –9,234 –8,093 –7,719 Balance 4,366 4,408 3,122 4,165 1,639
Information on the remuneration of Board members and transactions with these persons can be found in the remuneration report in the combined management report, and under (45) Remuneration report. 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.
Mid-term incentive plans In the financial years from 2009 to 2019, Munich Reinsurance Company set up mid-term incentive plans, each with a term of three years. Senior management in Munich are eligible for participation in these cash-settled remuneration plans. The participants receive performance share units (PSUs). In the fourth year after plan commencement, participants are entitled to a bonus payment dependent on the achievement of value-based performance targets and the increase in total shareholder return (TSR).
Long-term incentive plans Since 1 January 2020, the companies pertaining to the reinsurance field of business have set up long-term incentive plans. This remuneration component for senior management replaces the long-term remuneration plans previously in place in the respective companies, including the Munich Reinsurance Company Mid-Term Incentive Plan. Plans that are still active will end in accordance with the applicable plan conditions, or have been superseded. The standardised remuneration scheme behind these longterm incentive plans largely corresponds with that of the multi-year bonus of the members of the Board of Management, which is described in the remuneration report in the combined management report.
The members of Munich Reinsurance Company’s Board of Management received remuneration totalling €22.8m (23.8m); this includes compensation in the amount of €3.4m (3.3m) paid to a member of the Board by an affiliated company for services performed there. The total remuneration of Munich Reinsurance Company’s Supervisory Board amounted to €3.1m (3.2m); included in this figure is €0.1m (0.2m) for membership of supervisory boards at other Group companies.
All other disclosures on remuneration for Board members, the structure of the remuneration system, and the share ownership of the members of the Board of Management can be found in the remuneration report in the combined management report.
Breakdown of number of staff 31.12.2020 Prev. year Reinsurance 12,659 12,362 ERGO 26,983 27,300 Total 39,642 39,662 47 Auditor’s fees
For services rendered to the parent and consolidated subsidiaries by the Group auditor (Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft), the following fees were recognised as an expense in the financial year:
Other services essentially relate to quality assurance support in connection with the introduction of regulatory requirements or of new accounting standards, as well as process automation and data analytics; each service is based on solutions and concepts produced by us.
Munich Re is a member of the German Nuclear Reactor Insurance Association (DKVG) and the Pharma Reinsurance Community. If another member of these pools is not able to meet their payment obligations, we may be held liable for a proportional share of their obligations. However, we consider the risk of such a liability arising to be remote.
Besides this, Munich Re has entered into various other financial obligations amounting to €836m (765m) for work and service contracts and €2,911m (2,845m) for investment obligations, of which €12m (13m) is from our investments in joint ventures. There were loan commitments amounting to €1,847m (1,720m) at the end of the reporting period. Many of these loan commitments, totalling €1,282m (849m), can be drawn down within one year; the other €356m (509m) between one and two years. These figures represent undiscounted nominal amounts. There are other financial commitments amounting to €8m (9m).
Our subsidiary Munich American Reassurance Company reported a negative earned surplus in its local financial statements as at 31 December 2020 (Statutory Accounting Principles). For this reason, the company can only pay dividends or transfer capital to the parent company with the approval of the competent US regulatory authority.
Munich Re as lessee Please see (15) Other assets and (28) Other liabilities for information on rights of use and lease liabilities.
Future minimum lease payments under operating leases €m 31.12.2020 Prev. year Up to one year 591 341 Over one year and up to five years 872 1,040 Over five years 627 765 Total 2,090 2,145
Minimum lease payments up to one year 1 0 0 1 0 0 Minimum lease payments of over one year and up to five years
Minimum lease payments of over five years 70 56 14 70 56 14 Total minimum lease payments 72 57 16 73 57 16 Unguaranteed residual values 41 31 10 41 32 10 Total 114 88 26 114 88 26
Munich Re Group Annual Report 2020 51 Events after the balance sheet date
The USA, especially the state of Texas, was affected by an extreme cold spell in February, which led to substantial frost damage in particular. As there is still a very high degree of uncertainty at this stage, precise claims forecasts are not yet possible. In consideration of the great uncertainty, Munich Re currently expects claims expenditure in the mid triple-digit million euro range.
There were no diluting effects to be disclosed for the calculation of earnings per share either in the financial year or in the previous 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 2020 Prev. year Consolidated result attributable to Munich Reinsurance Company equity holders €m 1,211 2,724 Weighted average number of outstanding shares 140,285,225 143,638,536 Earnings per share € 8.63 18.97
The retrospective adjustment of the previous year’s figures did not result in a change to the earnings per share in the previous year (see Changes in accounting policies and other adjustments).
DKV Deutsche Krankenversicherung Aktiengesellschaft, Cologne 100.0000 DKV Pflegedienste & Residenzen GmbH, Cologne 100.0000 DKV Seguros y Reaseguros S.A. Española, Saragossa 100.0000 DMS QIAIF Platform ICAV (FIVE LABS Subfonds), Dublin 100.0000 DWS Concept SICAV (Subfonds Institutional Fixed Income, Inhaber-Anteile I4D), Luxembourg 100.0000 DWS Concept SICAV (Subfonds Institutional Fixed Income, Inhaber-Anteile I6D o.N.), Luxembourg 100.0000 DWS Concept SICAV (Subfonds Institutional Fixed Income, Inhaber-Anteile I7D o.N.), Luxembourg 100.0000 DWS Concept SICAV (Subfonds Institutional Fixed Income, Inhaber-Anteile I8D o.N.), Luxembourg 100.0000 E&S Claims Management Inc., Reston, Virginia 100.0000 EIG Co., Wilmington, Delaware 100.0000 ERGO ASIGURARI DE VIATA S.A., Bucharest 100.0000 ERGO ASIGURARI S.A., Bucharest 100.0000 ERGO Austria International AG, Vienna 100.0000 ERGO Beratung und Vertrieb AG, Düsseldorf 100.0000 ERGO Deutschland AG, Düsseldorf 100.0000 ERGO Digital Ventures AG, Düsseldorf 100.0000 ERGO DIREKT Versicherung AG, Fürth 100.0000 ERGO Elfte Beteiligungsgesellschaft mbH, Düsseldorf 100.0000 ERGO Fund I LP, Dover, Delaware1 100.0000 ERGO Generales Seguros y Reaseguros S.A., Madrid 100.0000 ERGO Group AG, Düsseldorf 100.0000 ERGO Grubu Holding A.Ş., Istanbul 100.0000 ERGO Grundstücksverwaltung GbR, Düsseldorf1 100.0000 ERGO Insurance Company Single Member S.A., Athens 100.0000 ERGO Insurance N.V., Brussels 100.0000 ERGO Insurance Pte. Ltd., Singapore 100.0000 ERGO Insurance SE, Tallinn 100.0000 ERGO International Aktiengesellschaft, Düsseldorf 100.0000 ERGO International Services GmbH, Düsseldorf 100.0000 ERGO Invest SIA, Riga 100.0000 ERGO Krankenversicherung AG, Fürth 100.0000 ERGO Lebensversicherung Aktiengesellschaft, Hamburg 100.0000 ERGO Life Insurance SE, Vilnius 100.0000 ERGO Life S.A., Grevenmacher 100.0000 ERGO Neunte Beteiligungsgesellschaft mbH, Düsseldorf 100.0000 ERGO Partners N.V., Brussels 100.0000 ERGO Pensionsfonds Aktiengesellschaft, Düsseldorf 100.0000 ERGO Pensionskasse AG, Düsseldorf 100.0000 ERGO pojišt’ovna, a.s., Prague 100.0000 ERGO Private Capital Dritte GmbH & Co. KG, Düsseldorf 100.0000 ERGO Private Capital Gesundheit GmbH, Düsseldorf 100.0000 ERGO Private Capital Komposit GmbH & Co. KG, Düsseldorf 100.0000 ERGO Private Capital Leben GmbH & Co. KG, Düsseldorf 100.0000 ERGO Private Capital Vierte GmbH & Co. KG, Düsseldorf 100.0000 ERGO Private Capital Zweite GmbH & Co. KG, Düsseldorf 100.0000 ERGO Reiseversicherung AG, Munich 100.0000 ERGO Sechzehnte Beteiligungs-AG, Munich 100.0000 ERGO Technology & Services Management AG, Düsseldorf 100.0000 ERGO Versicherung Aktiengesellschaft, Düsseldorf 100.0000 ERGO Versicherung Aktiengesellschaft, Vienna 100.0000 ERGO Vida Seguros y Reaseguros S.A., Saragossa 100.0000 ERGO Vorsorge Lebensversicherung AG, Düsseldorf 100.0000 ERV Evropská pojišt’ovna, a.s., Prague 90.0000
Imofloresmira – Investimentos Imobiliarios S.A., Lisbon 100.0000 ITERGO Informationstechnologie GmbH, Düsseldorf 100.0000 ITERGO Service GmbH, Düsseldorf 100.0000 JSC “ERV Travel Insurance”, Moscow 100.0000 K & P Pflegezentrum Uelzen IMMAC Renditefonds GmbH & Co. KG, Düsseldorf 84.8445 KA Köln.Assekuranz Agentur GmbH, Cologne 100.0000 Kapdom-Invest GmbH, Moscow 100.0000 KS SPV 23 Limited, London 100.0000 LEGIAL AG, Munich 100.0000 Lietuva Demetra GmbH, Munich 100.0000 Lloyds Modern Corporation, Dallas, Texas 100.0000 Longial GmbH, Düsseldorf 100.0000 Lynt Farm Solar Limited, London 100.0000 MAGAZ FOTOVOLTAICA S.L.U., Alcobendas 100.0000 Mandaat B.V., Druten 100.0000 Marina Salud S.A., Alicante 65.0000 Marina Sp.z.o.o., Sopot 100.0000 MEAG Anglo Celtic Fund, Munich4 100.0000 MEAG ATLAS, Munich4 100.0000 MEAG Benedict, Munich4 100.0000 MEAG Cash Management GmbH, Munich 100.0000 MEAG EDK Quantum, Munich4 100.0000 MEAG EDL CurryGov, Munich4 100.0000 MEAG EDS AGIL, Munich4 100.0000 MEAG ERGO Belgium Equities, Munich4 100.0000 MEAG ESUS 1, Munich4 100.0000 MEAG EUR Global 1, Munich4 100.0000 MEAG Euro 1, Munich4 100.0000 MEAG Euro 2, Munich4 100.0000 MEAG EURO-FONDS, Munich4 100.0000 MEAG European Prime Opportunities, Munich4 56.7903 MEAG Eurostar, Munich4 100.0000 MEAG EURO-Yield, Munich4 100.0000 MEAG FlexConcept – Basis, Luxembourg4 100.0000 MEAG FlexConcept – Eurobond, Luxembourg4 100.0000 MEAG FlexConcept – Wachstum, Luxembourg4 100.0000 MEAG GBP Global-STAR, Munich4 100.0000 MEAG German Prime Opportunities (GPO), Munich4 100.0000 MEAG HBG 1, Munich4 100.0000 MEAG HM Sach Rent 1, Munich4 100.0000 MEAG HMR 1, Munich4 100.0000 MEAG HMR 2, Munich4 100.0000 MEAG Hyperion Fund, Munich4 100.0000 MEAG IREN, Munich4 100.0000 MEAG Janus, Munich4 100.0000 MEAG Kapital 2, Munich4 100.0000 MEAG Kapital 5, Munich4 100.0000 MEAG Kubus 1, Munich4 100.0000 MEAG Lambda EUR EM Local, Grünwald4 100.0000 MEAG Lambda EUR, Grünwald4 100.0000 MEAG Lambda GBP, Grünwald4 100.0000 MEAG Lambda USD, Grünwald4 100.0000 MEAG Multi Life, Munich4 100.0000 MEAG Multi Sach 1, Munich4 100.0000 MEAG MUNICH ERGO AssetManagement GmbH, Munich 100.0000 MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH, Munich 100.0000 MEAG Munich Re Placement, Grünwald4 100.0000 MEAG New York Corporation, Dover, Delaware 100.0000 MEAG PEGASUS, Munich4 100.0000 MEAG Pension Invest, Munich4 100.0000
MEAG Pensionskasse Nord, Munich4 100.0000 MEAG Pensionskasse West, Munich4 100.0000 MEAG PREMIUM, Munich4 100.0000 MEAG Prof III Beteiligungsgesellschaft mbH, Munich 100.0000 MEAG Property Fund I, Munich4 100.0000 MEAG Property Fund III, Munich4 100.0000 MEAG RenditePlus, Munich4 100.0000 MEAG REVO, Munich4 100.0000 MEAG US Fonds, Munich4 100.0000 MEAG Venus, Munich4 100.0000 MEAG Vidas Rent 3, Munich4 100.0000 MEAG VISION, Munich4 100.0000 MEAG VLA, Munich4 100.0000 MedNet Holding GmbH, Munich 100.0000 Merkur Grundstücks- und Beteiligungs-Gesellschaft mit beschränkter Haftung, Düsseldorf 100.0000 Meshify Inc., Dover, Delaware 100.0000 MFI Munich Finance and Investment Holding Ltd., Ta’ Xbiex 100.0000 MFI Munich Finance and Investment Ltd., Ta’ Xbiex 100.0000 Midland-Guardian Co., Amelia, Ohio 100.0000 Midwest Enterprises Inc., Tallahassee, Florida 100.0000 MR Bazos LP, Dover, Delaware 100.0000 MR Beteiligungen 1. GmbH, Munich3 100.0000 MR Beteiligungen 2. EUR AG & Co. KG, Grünwald2 100.0000 MR Beteiligungen 2. GmbH, Munich 100.0000 MR Beteiligungen 3. EUR AG & Co. KG, Grünwald2 100.0000 MR Beteiligungen 17. GmbH, Munich 100.0000 MR Beteiligungen 18. GmbH & Co. 2. Real Estate KG, Grünwald2 100.0000 MR Beteiligungen 18. GmbH & Co. 3. Real Estate KG, Grünwald2 100.0000 MR Beteiligungen 18. GmbH & Co. 4. Real Estate KG, Grünwald2 100.0000 MR Beteiligungen 18. GmbH & Co. Immobilien KG, Grünwald2 100.0000 MR Beteiligungen 18. GmbH & Co. Real Estate KG, Grünwald2 100.0000 MR Beteiligungen 19. GmbH, Munich 100.0000 MR Beteiligungen EUR AG & Co. KG, Grünwald2 100.0000 MR Beteiligungen GBP AG & Co. KG, Grünwald2 100.0000 MR Beteiligungen UK AG & Co. KG, Grünwald2 100.0000 MR Beteiligungen USD AG & Co. KG, Grünwald2 100.0000 MR Debt Finance GmbH, Munich 100.0000 MR Electra LP, Dover, Delaware 100.0000 MR ERGO Beteiligungen GmbH, Grünwald 100.0000 MR Gotham LP, Dover, Delaware 100.0000 MR Infrastructure Investment GmbH, Munich3 100.0000 MR Investment Inc., Dover, Delaware 100.0000 MR Jordan LP, Dover, Delaware 100.0000 MR Olivia LP, Dover, Delaware 100.0000 MR RENT UK Investment Limited, London 100.0000 MR RENT-Investment GmbH, Munich3 100.0000 MR Solar GmbH & Co. KG, Düsseldorf 100.0000 MR SOLAR SAS DER WELIVIT SOLAR ITALIA S.r.l., Bolzano 100.0000 MRSG UK Services Limited, London 100.0000 Munich American Life Reinsurance Company, Norcross, Georgia 100.0000 Munich American Reassurance Company, Norcross, Georgia 100.0000 Munich Health Alpha GmbH, Munich3 100.0000 Munich Health Daman Holding Ltd., Abu Dhabi 51.0000 Munich Health Holding AG, Munich3 100.0000
UAB Vasaros Brizas, Vilnius 100.0000 UAB VL Investment Vilnius 1, Vilnius 100.0000 UAB VL Investment Vilnius 2, Vilnius 100.0000 UAB VL Investment Vilnius 3, Vilnius 100.0000 UAB VL Investment Vilnius 4, Vilnius 100.0000 UAB VL Investment Vilnius 5, Vilnius 100.0000 UAB VL Investment Vilnius 6, Vilnius 100.0000 UAB VL Investment Vilnius 7, Vilnius 100.0000 UAB VL Investment Vilnius 8, Vilnius 100.0000 UAB VL Investment Vilnius 9, Vilnius 100.0000 UAB VL Investment Vilnius 10, Vilnius 100.0000 UAB VL Investment Vilnius, Vilnius 100.0000 UK Wind Holdings Ltd., London 100.0000 Unión Médica La Fuencisla S.A., Compañía de Seguros, Saragossa 100.0000 US PROPERTIES VA GmbH & Co. KG i. L., Düsseldorf4 46.0939 VHDK Beteiligungsgesellschaft mbH, Düsseldorf 100.0000 VICTORIA Asien Immobilienbeteiligungs GmbH & Co. KG, Munich 100.0000 VICTORIA Italy Property GmbH, Düsseldorf 100.0000 Victoria Lebensversicherung Aktiengesellschaft, Düsseldorf 100.0000 Victoria US Property Investment GmbH, Düsseldorf 100.0000 VICTORIA Vierte Beteiligungsgesellschaft mbH, Düsseldorf 100.0000 Victoria Vierter Bauabschnitt GmbH & Co. KG, Düsseldorf 100.0000 Vorsorge Service GmbH, Düsseldorf 100.0000 welivit GmbH, Düsseldorf 100.0000 welivit Solarfonds GmbH & Co. KG, Düsseldorf 100.0000 welivit Solarfonds S.a.s. di welivit Solar Italia S.r.l., Bolzano 100.0000 WFB Stockholm Management AB, Stockholm 100.0000 Willow Series Holdings LLC Series C, Wilmington, Delaware 100.0000 Wind Farm Jenasen AB, Hässleholm 100.0000 Wind Farms Götaland Svealand AB, Hässleholm 100.0000 Windpark MR-B GmbH & Co. KG, Bremen2 100.0000 Windpark MR-D GmbH & Co. KG, Bremen2 100.0000 Windpark MR-N GmbH & Co. KG, Bremen2 100.0000 Windpark MR-S GmbH & Co. KG, Bremen2 100.0000 Windpark MR-T GmbH & Co. KG, Bremen2 100.0000 wse Solarpark Spanien 1 GmbH & Co. KG, Düsseldorf 75.1243
Caracuel Solar Diecisiete S.L., Valencia 100.0000 Caracuel Solar Diez S.L., Valencia 100.0000 Caracuel Solar Doce S.L., Valencia 100.0000 Caracuel Solar Dos S.L., Valencia 100.0000 Caracuel Solar Nueve S.L., Valencia 100.0000 Caracuel Solar Ocho S.L., Valencia 100.0000 Caracuel Solar Once S.L., Valencia 100.0000 Caracuel Solar Quince S.L., Valencia 100.0000 Caracuel Solar Seis S.L., Valencia 100.0000 Caracuel Solar Siete S.L., Valencia 100.0000 Caracuel Solar Trece S.L., Valencia 100.0000 Caracuel Solar Tres S.L., Valencia 100.0000 Caracuel Solar Uno S.L., Valencia 100.0000 Centrum Pomocy Osobom Poszkodowanym Sp.z.o.o., Gdańsk 100.0000 Copper Leaf Research, Eaton Rapids, Michigan 100.0000 Cotatrillo 100010 S.L., Valencia 100.0000 D.A.S. Prawo i Finanse Sp.z.o.o., Warsaw 100.0000 D.A.S., Tomasz Niedzinski Kancelaria Prawna Spolka komandytowa, Warsaw 95.0000 DAS Incasso Arnhem B.V., Elst 100.0000 DAS Legal Protection Inc., Toronto, Ontario 100.0000 DAS Legal Services B.V., Amsterdam 100.0000 DAS Lex Assistance S.L., L’Hospitalet de Llobregat 100.0000 DEAX Õigusbüroo OÜ, Tallinn 100.0000 Digital Partners Claims Administrators Inc., Columbus, Ohio 100.0000 DKV Beteiligungs- und Vermögensverwaltungs GmbH & Co. KG, Cologne 100.0000 DKV Erste Beteiligungsgesellschaft mbH, Cologne 100.0000 DKV Servicios S.A., Saragossa 100.0000 DKV-Residenz am Tibusplatz gGmbH, Münster 100.0000 DKV-Residenz in der Contrescarpe GmbH, Bremen 100.0000 DRA Debt Recovery Agency B.V., The Hague 100.0000 Economic Data Resources B.V., The Hague 100.0000 ERGO (China) Management Company Limited, Beijing 100.0000 ERGO Alpha GmbH, Düsseldorf 100.0000 ERGO Digital IT GmbH, Berlin 100.0000 ERGO Direkt AG, Fürth 100.0000 ERGO Fund Golden Aging, Brussels4 100.0000 ERGO Gourmet GmbH, Düsseldorf 100.0000 ERGO Infrastructure Investment Gesundheit GmbH, Düsseldorf 100.0000 ERGO Infrastructure Investment Komposit GmbH, Düsseldorf 100.0000 ERGO Infrastructure Investment Leben GmbH, Düsseldorf 100.0000 ERGO Infrastructure Investment Pensionskasse GmbH, Düsseldorf 100.0000 ERGO Infrastructure Investment Victoria Leben GmbH, Düsseldorf 100.0000 ERGO Innovation Solutions GmbH, Düsseldorf 100.0000 ERGO Leben Asien Verwaltungs GmbH, Munich 100.0000 ERGO Mobility Solutions GmbH, Düsseldorf 100.0000 ERGO Private Capital GmbH, Düsseldorf 100.0000 ERGO Private Capital Vorsorge GmbH, Düsseldorf 100.0000 ERGO PRO S.r.l., Verona 100.0000 ERGO Pro, spol.s.r.o., Prague 100.0000 ERGO Rechtsschutz Leistungs-GmbH, Munich 100.0000 ERGO Travel Insurance Services Ltd., London 100.0000 ERGO UK SPECIALTY LIMITED, London 100.0000 ERGO Versicherungs- und Finanzierungs-Vermittlung GmbH, Hamburg 100.0000 ERGO Vorsorgemanagement GmbH, Vienna 100.0000
PRORENDITA VIER Verwaltungsgesellschaft mbH, Düsseldorf 100.0000 PRORENDITA ZWEI Verwaltungsgesellschaft mbH i. L., Düsseldorf 100.0000 Reaseguradora de las Américas S.A., Havana 100.0000 SAINT LEON ENERGIE S.A.R.L., Saargemünd 100.0000 Schloss Hohenkammer GmbH, Hohenkammer 100.0000 Schrömbgens & Stephan GmbH Versicherungsmakler, Düsseldorf 100.0000 Smart Thinking Consulting (Beijing) Co. Ltd., Beijing 100.0000 Solarfonds Göttelborn 2 GmbH & Co. KG, Düsseldorf4 34.4234 Sopockie Towarzystwo Doradcze Sp.z.o.o., Sopot 100.0000 Stichting Aandelen Beheer D.A.S. Holding, Amsterdam 100.0000 Sustainable Finance Risk Consulting GmbH, Munich 100.0000 TAS Touristik Assekuranz-Service GmbH, Frankfurt am Main 100.0000 Tellus Demetra LLC, Wilmington, Delaware 100.0000 TIERdirekt GmbH, Munich 75.0000 Tillobesta 180018 S.L., Valencia 100.0000 TPA Vertriebs- und Marketing GmbH, Hamburg 80.1000 Triple IP B.V. in liquidatie, Utrecht 100.0000 US PROPERTIES VA Verwaltungs-GmbH, Düsseldorf 100.0000 Verwaltungsgesellschaft “PORT ELISABETH” mbH, Bramstedt 100.0000 Verwaltungsgesellschaft “PORT LOUIS” mbH, Bramstedt 100.0000 Verwaltungsgesellschaft “PORT MOUTON” mbH, Bramstedt 100.0000 Verwaltungsgesellschaft “PORT RUSSEL” mbH, Bramstedt 100.0000 Verwaltungsgesellschaft “PORT STEWART” mbH, Bramstedt 100.0000 VICTORIA Immobilien Management GmbH i. L., Munich 100.0000 VICTORIA Immobilien-Fonds GmbH, Düsseldorf 100.0000 VICTORIA US Property Zwei GmbH i. L., Munich 100.0000 Victoria Vierter Bauabschnitt Management GmbH, Düsseldorf 100.0000 Viwis GmbH, Munich 100.0000 VV-Consulting Gesellschaft für Risikoanalyse, Vorsorgeberatung und Versicherungsvermittlung GmbH, Vienna 100.0000 welivit New Energy GmbH, Düsseldorf 100.0000 welivit Solar España GmbH, Düsseldorf 100.0000 welivit Solar Italia s.r.l., Bolzano 100.0000 Windpark Langengrassau Infrastruktur GbR, Bremen1 83.3300 WNE Solarfonds Süddeutschland 2 GmbH & Co. KG, Düsseldorf 100.0000 Wohnungsgesellschaft Brela mbH, Hamburg 100.0000 WP Kladrum/Dargelütz GbR, Bremen1 55.0000 Zacobu 110011 S.L., Valencia 100.0000 Zacuba 6006 S.L., Valencia 100.0000 Zacubacon 150015 S.L., Valencia 100.0000 Zafacesbe 120012 S.L., Valencia 100.0000 Zapacubi 8008 S.L., Valencia 100.0000 Zarzucolumbu 100010 S.L., Valencia 100.0000 Zetaza 4004 S.L., Valencia 100.0000 Zicobucar 140014 S.L., Valencia 100.0000 Zucaelo 130013 S.L., Valencia 100.0000 Zucampobi 3003 S.L., Valencia 100.0000 Zucarrobiso 2002 S.L., Valencia 100.0000 Zucobaco 7007 S.L., Valencia 100.0000 Zulazor 3003 S.L., Valencia 100.0000 Zumbicobi 5005 S.L., Valencia 100.0000
Zumcasba 1001 S.L., Valencia 100.0000 Zuncabu 4004 S.L., Valencia 100.0000 Zuncolubo 9009 S.L., Valencia 100.0000
Associated and joint ventures accounted for using the equity method 1818 Acquisition LLC, Dover, Delaware 20.6400 Arcapark SAS, Rueil Malmaison5 15.1000 Astoria Power Partners Holding LLC, Dover, Delaware 20.0000 Bazos CIV LP, Wilmington, Delaware7 100.0000 Consorcio Internacional de Aseguradores de Crédito S.A., Madrid5 15.0353 D.A.S. Difesa Automobilistica Sinistri, S.p.A. di Assicurazione, Verona 49.9920 EGM Wind SAS, Paris 40.0000 ERGO China Life Insurance Co., Ltd., Jinan, Shandong Province 50.0000 Europai Utazasi Biztosito Rt, Budapest 26.0000 Europäische Reiseversicherungs-Aktiengesellschaft, Vienna 25.0100 GHGH Holdings Inc., Surrey, British Columbia 40.0000 Global Aerospace Underwriting Managers Ltd., London7 51.0000 HDFC ERGO General Insurance Company Ltd., Mumbai 48.4555 Infra Foch Topco SAS, Puteaux5 10.7900 Invesco MEAG US Immobilien Fonds IV B, Luxembourg 37.1670 KarstadtQuelle Finanz Service GmbH i. L., Düsseldorf 50.0000 King Price Financial Services (Pty) Ltd, Pretoria5 15.0000 Marchwood Power Limited, Southampton 50.0000 MEAG Pacific Star Holdings Ltd. i. L., Hong Kong 50.0000 MEDICLIN Aktiengesellschaft, Offenburg 35.0042 National Health Insurance Company – Daman – PJSC, Abu Dhabi 20.0000 Next Insurance Inc., Wilmington, Delaware 36.4373 Poolbeg Investments Limited, London 37.5000 RP Vilbeler Fondsgesellschaft mbH i. L., Frankfurt am Main 40.0000 Sana Kliniken AG, Munich 22.4904 SAS Le Point du Jour, Paris 50.0000 SNIC Insurance B.S.C. (c), Manama 22.5000 SR Texas Wind Holdings 1 LLC, Dover, Delaware 49.0000 STEAG Fernwärme GmbH, Essen 49.0000 Storebrand Helseforsikring AS, Oslo 50.0000 Super Home Inc., Wilmington, Delaware5 17.3800 Suramericana S.A., Medellin5 18.8672 Taunus Holding B.V., Rotterdam 23.1913 Thaisri Insurance Public Company Limited, Bangkok 40.2576 T-Solar Global Operating Assets S.L., Madrid 37.0000 Vier Gas Investments S.à r.l., Luxembourg 43.7516
Shareholdings exceeding 5% of the voting rights in large companies as defined in Section 271(1) of the German Commercial Code (HGB) Admiral Group plc, Cardiff (equity: €47,146k; result for year: €323,614k) 10.1450 Extremus Versicherungs-Aktiengesellschaft, Cologne (equity: €64,100k; result for year: €42k) 16.0000 Protektor Lebensversicherungs-AG, Berlin (equity: €7,851k; result for year: €7k) 10.7631 Saudi Enaya Cooperative Insurance Company, Jeddah (equity: €32,539k; result for year: -€24,778k) 15.0000 Wataniya Insurance Company, Jeddah (equity: €56,264k; result for year: €4,304k) 10.0000
3 This fully consolidated German subsidiary intends to fulfil the conditions required in Section 264(3) of the German Commercial Code (HGB) and, in the 2020 financial year, to avail itself of the relevant provision exempting it from preparing annual financial statements.
Report on the audit of the consolidated financial statements and of the combined management report
Pursuant to Section 322(3) sentence 1 of the Commercial Code (HGB), we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements or of the combined management report.
Key audit matters in the audit of the consolidated financial statements Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements for the financial year from 1 January 2020 to 31 December 2020. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon; we do not provide a separate opinion on these matters.
Below, we describe what we consider to be the key audit matters:
Reasons for the designation as a key audit matter The provision for outstanding claims in property-casualty business concerns the segments Property-casualty reinsurance, ERGO Property-casualty Germany, and ERGO International. This provision includes, among other things, the partial loss provision for known and unknown claims; it is calculated on the basis of an empirical value and by using actuarial techniques and statistical methods. In this context, past experience is used as a basis for making assumptions about premiums and ultimate loss ratios, as well as the time frames, factors and speed of claims settlement. Management determines the amount of the provision for outstanding claims based on the results of the actuarial techniques and additional information regarding the uncertainties associated with the calculations. The assessment of major losses is regarded separately in calculating the provision for outstanding claims.
Determining the provision for outstanding claims is subject to uncertainty and judgement, as the provision is largely based on estimates and assumptions. Uncertainties in estimation arise in particular from the occurrence, amount, and speed of settlement of large claims; long-term claims development and special loss scenarios (including thirdparty liability, particularly asbestos and environmental liability claims), and losses in connection with the Covid-19 pandemic. With regard to the estimation of the provision in the context of the Covid-19 pandemic, there is uncertainty as to whether the Company is affected by losses based on contractual agreements and particularly owing to, in most cases, insufficient empirical data for such losses. We have therefore designated the measurement of the provision for outstanding claims as a key audit matter. In addition, the provision for outstanding claims in property-casualty business is a material liability item in the consolidated balance sheet.
Auditor’s response As part of our audit, we gained an understanding of the process of determining the provision for outstanding claims in property-casualty business. We also tested the effectiveness of the controls implemented for ensuring the completeness and accuracy of the recognition and measurement of claims.
We applied mathematical and statistical methods to generate our own loss projections for certain segments based on risk considerations. We first calculated a best estimate and defined an appropriate range based on statistical probabilities, and then compared these with the Company’s calculations.
In addition, we compared the reserve level at the end of the reporting period with the previous year’s level, and verified adjustments made to the actuarial estimate. In this context, we analysed the documentation of the underlying calculations or qualitative rationale.
As part of substantive audit procedures, we verified the calculation of the provisions for major losses on the basis of selecting specific items, taking into account the information and data available at the end of the reporting period. In the case of losses in connection with the Covid19 pandemic, we assessed whether the Company is affected by losses based on contractual agreements, and also assessed the measurement of the provisions.
We engaged our own specialists with knowledge of actuarial science in our audit.
Reference to related disclosures The information on the accounting and measurement policies used are disclosed in the section Equity and liabilities – C Gross technical provisions in the Notes to the consolidated financial statements. In addition, the use of estimates and assumptions is explained in the section Recognition and measurement, Use of judgements and estimates in recognition and measurement. Moreover, there is further information on the line items in section (22) Provision for outstanding claims. Risk information can be found in the section (40) Disclosures on risks from property-casualty insurance business in the Notes to the consolidated financial statements, and in the section Risk report in the Combined management report.
Measurement of the provision for future policy benefits, the provision for outstanding claims, and deferred acquisition costs in life and health business
The provision for outstanding claims in life and health reinsurance is determined on the basis of information from the cedants and/or on the basis of actuarial techniques that require estimates and assumptions.
Auditor’s response As part of our audit, we gained an understanding of the processes of determining the provision for future policy benefits, the provisions for outstanding claims, and the deferred acquisition costs. We also tested the effectiveness of the controls implemented within the processes.
In addition, we methodically verified the actuarial techniques used to derive the key assumptions that are utilised to determine the provision for future policy benefits. We also analysed the discount rates used.
For the purpose of assessing the quality of estimates, we compared the results expected by the Company for the individual business units with the actual results and assessed them against market developments.
We performed our own calculation of the provision for future policy benefits on the basis of a risk-based sample of sub-portfolios and tariffs, and compared our results with those of the Company.
Reference to related disclosures The information on the accounting and measurement policies used are disclosed in the section Equity and liabilities – C Gross technical provisions in the Notes to the consolidated financial statements. In addition, the use of estimates and assumptions is explained in the section Recognition and measurement, Use of judgements and estimates in recognition and measurement. Moreover, there is further information on the line items in section (13) Deferred acquisition costs and (21) Provision for future policy benefits. Risk information can be found in section (39) Disclosures on risks from life and health insurance business in the Notes to the consolidated financial statements, and in the section Risk report in the Combined management report.
In addition, we performed our own fair value calculations for some derivatives on a sample basis and compared the fair values with those determined by the Company.
Moreover, we verified the fair value measurements of alternative direct investments on the basis of a sample, and assessed the calculation parameters used in consideration of the investment-specific circumstances. We compared the fair values of sub-portfolios of indirectly held real estate investments and of investments in private equity funds with external information. In the case of directly held real estate investments, we verified the measurements made on the basis of samples.
Our audit of the fair value measurements of the unlisted investments also included investments from issuers in sectors and countries heavily affected by the Covid-19 pandemic, as well as infrastructure and private equity investments. We analysed these investments as to whether impairment losses had been recognised in the case of impairment.
Reference to related disclosures The information on the accounting and valuation policies used are disclosed in the section Assets – B Investments in the Notes to the consolidated financial statements. In addition, the use of estimates and assumptions is explained in the section Recognition and measurement, Use of judgements and estimates in recognition and measurement. Moreover, further information on the individual instruments can be found in the section Notes to the consolidated balance sheet – Assets. Information about market risk and credit risk can be found in the section Risk report in the Combined management report.
Our opinions on the consolidated financial statements and on the combined management report do not cover the other information, and consequently we do not express an opinion or any other form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read the other information and, in so doing, to consider whether the other information
− is materially inconsistent with the consolidated financial statements, with the combined management report, or our knowledge obtained in the audit, or
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of management and the Supervisory Board for the consolidated financial statements and the combined management report Management is responsible for the preparation of the consolidated financial statements that comply, in all material respects, with IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e(1) of the Commercial Code (HGB) and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position and financial performance of the Group. In addition, management is responsible for such internal control as they have determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Furthermore, management is responsible for the preparation of the combined management report that, as a whole, provides an appropriate view of the Group’s position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. In addition, management is responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a combined management report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the combined management report.
Auditor’s responsibilities for the audit of the consolidated financial statements and of the combined management report Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the combined management report as a whole provides an appropriate view of the Group’s position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue an auditor’s report that includes our opinions on the consolidated financial statements and on the combined management report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Section 317 of the Commercial Code (HGB) and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and this combined management report.
We also provide those charged with governance with a statement that we have complied with the relevant independence requirements, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, related safeguards.
Assurance report in accordance with Section 317(3)(b) of the Commercial Code (HGB) on the electronic reproduction of the consolidated financial statements and the combined management report prepared for publication purposes
Basis for the reasonable assurance opinion We conducted our assurance work on the reproduction of the consolidated financial statements and the combined management report contained in the above-mentioned electronic file in accordance with Section 317(3)(b) of the Commercial Code (HGB) and the Exposure Draft of IDW Assurance Standard: Assurance in Accordance with Section 317(3)(b) of the Commercial Code (HGB) on the Electronic Reproduction of Financial Statements and Management Reports Prepared for Publication Purposes (ED IDW AsS 410). Accordingly, our responsibilities are further described below in the “Group auditor’s responsibilities for assurance work regarding the ESEF documents” section. Our audit firm has applied IDW Standard on Quality Management 1: Requirements for Quality Management in the Audit Firm (IDW QS 1).
− Evaluate whether the ESEF documents enable XHTML reproduction with content equivalent to the audited consolidated financial statements and to the audited combined management report.
We declare that the opinions expressed in this auditor’s report are consistent with the additional report to the Audit Committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).
The assurance engagement performed by Ernst & Young (EY) relates exclusively to the German version of the nonfinancial statement 2020 of Münchener RückversicherungsGesellschaft Aktiengesellschaft in München. The following text is a translation of the original German Independent Assurance Report.
The legal representatives of the Company are responsible for the preparation of the non-financial statement in accordance with Sections 315c in conjunction with 289c to 289e of the HGB.
We are independent from the Company in accordance with the provisions under German commercial law and professional requirements, and we have fulfilled our other professional responsibilities in accordance with these requirements.
Our audit firm applies the national statutory regulations and professional pronouncements for quality control, in particular the by-laws regulating the rights and duties of Wirtschaftsprüfer and vereidigte Buchprüfer in the exercise of their profession [Berufssatzung für Wirtschaftsprüfer und vereidigte Buchprüfer] as well as the IDW Standard on Quality Control 1: Requirements for Quality Control in audit firms [IDW Qualitätssicherungsstandard 1: Anforderungen an die Qualitätssicherung in der Wirtschaftsprüferpraxis (IDW QS 1)].
Our responsibility is to express a limited assurance conclusion on the non-financial statement based on the assurance engagement we have performed.
Within the scope of our assurance engagement, which was conducted between September 2020 and March 2021, we performed amongst others the following assurance and other procedures: − Inquiries of employees regarding the selection of topics for the non-financial statement, the risk assessment and the concepts of Munich Re for the topics that have been identified as material
− Identification of likely risks of material misstatement in the non-financial statement
− Inspection of relevant documentation of the systems and processes for compiling, aggregating and validating data
− Inquiries and inspection of documents on a sample basis relating to the collection and reporting of selected data
− Evaluation of the presentation of disclosures in the nonfinancial statement
Based on our assurance procedures performed and assurance evidence obtained, nothing has come to our attention that causes us to believe that the non-financial statement of Munich Re for the period from 1 January 2020 to 31 December 2020 has not been prepared, in all material respects, in accordance with Sections 315c in conjunction with 289c to 289e of the HGB.
We make express reference to the fact that we do not update the assurance report to reflect events or circumstances arising after it was issued unless required to do so by law. It is the sole responsibility of anyone taking note of the result of our assurance engagement summarised in this assurance report to decide whether and in what way this result is useful or suitable for their purposes and to supplement, verify or update it by means of their own review procedures.
Dr. Kagermeier Welz Wirtschaftsprüfer Wirtschaftsprüfer (German Public Auditor) (German Public Auditor)
Service for investors and analysts Christian Becker-Hussong Tel: +49 89 38 91-39 10 ir@munichre.com
25 February 2021 Balance sheet media conference for 2020 consolidated financial statements (preliminary figures)
Important dates 2022 23 February 2022 Balance sheet media conference for 2021 consolidated financial statements (preliminary figures)
17 March 2022 Publication of the Group Annual Report 2021 28 April 2022 Annual General Meeting 10 May 2022 Quarterly Statement as at 31 March 2022 9 August 2022 Half-Year Financial Report as at 30 June 2022 8 November 2022 Quarterly Statement as at 30 September 2022