Members of the Supervisory Board were again invited to participate in an internal information event in 2020 as part of their specific further training. Almost all members used the opportunity to learn more about innovation, the IFRS 9 and IFRS 17 accounting standards, and the Munich Re equity story from the perspective of an investor. The Company also provided the members of the Supervisory Board with electronic training material for self-study. Before they took up their appointments, new members of the Supervisory Board also received specially compiled informational material to prepare for their new role.
Further to the annual information event, members of the Supervisory Board were invited to participate in additional information sessions concerning action required regarding the remuneration system for the members of the Board of Management owing to the introduction of ARUG II and the revised German Corporate Governance Code. These events also met with great interest.
ERGO International AG2 (Chair) ERGO Technology & Services Management AG2 (Chair)
Reinsurance Committee Dr. Torsten Jeworrek (Chair) Dr. Thomas Blunck Stefan Golling (from 1.1.2021) Dr. Doris Höpke Dr. Achim Kassow (from 1.5.2020) Hermann Pohlchristoph (until 30.4.2020) Dr. Peter Röder (until 31.12.2020) Chief Financial Officer for the reinsurance field of business2
Subcommittees of the Board of Management Committees Both the Group Committee and the Reinsurance Committee have set up subcommittees. The Group Committee has set up the Group Risk Committee; the Reinsurance Committee has set up the Global Underwriting and Risk Committee as well as the Board Committee IT Investments. These subcommittees also include senior executives from Munich Reinsurance Company and the Group who do not have voting rights.
Munich Re Group Annual Report 2020 women on the Board of Management. In addition, the Personnel Committee represents the Company in matters concerning the members of the Board of Management, and is responsible for personnel matters involving members of the Board of Management, unless these are issues that are the responsibility of the full Supervisory Board or the Remuneration Committee. This Committee approves loan transactions between the Company and members of the Board of Management and their related parties. The Personnel Committee also decides whether to approve sideline activities of members of the Board of Management, particularly mandates in supervisory boards or similar committees.
After in-depth deliberations by the Board of Management, the Audit Committee prepares the annual discussion of the risk strategy by the Supervisory Board, and discusses any changes to or deviations from the risk strategy with the Board of Management during the year.
Moreover, in accordance with legislation and the objectives concerning composition of the Supervisory Board, at least 30% of seats on the Supervisory Board of Munich Reinsurance Company must be filled by women, and at least 30% by men.
The average age of the members of the Board of Manage- ment at the end of the 2020 financial year was 54; the youngest Board member was 45, and the oldest was 60. The age limit for membership of the Board of Management is 67; members of the Board of Management must leave the Board no later than the end of the calendar year in which they turn 67. The requirements for age limits are thus met.
The competence profile also includes other personal qualities of Supervisory Board members, such as entrepreneurial and international experience, having sufficient availability to devote to the role, a strong commitment to corporate governance, commitment to the sustainable, long-term value-creating orientation of the Company and its business policy for shareholders, a solution-oriented approach, strategic expertise and the competence to effect change. Members of the Supervisory Board must have no relevant (major and not only temporary) conflicts of interest.
Munich Reinsurance Company (information reported on the basis of German accountancy rules) 105 Market environment and major factors of influence 105 Business performance 105 Financial position 109 Statement on Corporate Governance for the 2020 financial year pursuant to Section 289f and Section 315d of the German Commercial Code (HGB) 110 Further information 111
In ERGO, we combine Munich Re’s primary insurance activities. Some 69% of gross premiums written by ERGO derive from Germany, and 31% from international business – mainly from central and eastern European countries. ERGO also operates in Asian markets, particularly in India and China.
As reinsurers, we write our business in direct collaboration with primary insurers, but also via brokers and within the framework of strategic partnerships. In addition to traditional reinsurance business, we participate in insurance pools, public-private partnerships, business in specialist niche segments, and also as a primary insurer. We also offer our clients a wide range of special products, customised insurance solutions and services, which we manage from within our reinsurance organisation. Our clients thus have direct access to the expertise, innovative strength and capacity of a leading global risk carrier. Thanks to our capital management know-how, we are a sought-after partner for products geared to our clients’ balance-sheet, solvency and rating-capital requirements, as well as their risk models.
The three major US-based subsidiaries are Munich Reinsurance America, Inc., The Hartford Steam Boiler Inspection and Insurance Company (HSB), and American Modern Insurance Group, Inc. (American Modern). Munich Reinsurance America, Inc. writes property-casualty reinsurance business and niche primary insurance business. The primary insurers HSB and American Modern specialise in products for which client proximity and – like in reinsurance – risk understanding are paramount. Moreover, we pooled the activities of various specialty insurers in commercial primary insurance business in the North American market within Munich Re Specialty Insurance (MRSI) to better tap into the business potential in this market segment. The market presence is also supported by Munich Re Specialty Group, a leading provider of marine insurance and insurance solutions for the energy industry.
Pension contribution > Retirement > Insured event > Premature termination 1 For the variable remuneration, the share shown presupposes 100% performance evaluation. 2 In light of the fact that the peer group is very small – with just seven companies (main competitors) – and comprises both primary and reinsurance companies, there are no further performance hurdles or thresholds. Moreover, to ensure sound and effective risk management, members of the Board of Management should not be encouraged to take excessive risks in an endeavour to achieve higher bonuses. The bonus amount must adequately reflect the performance of Munich Re shares compared with that of the peer group.
Munich Re Group Annual Report 2020 incentive for members of the Board of Management to engage in excessive risk-taking in order to achieve higher bonuses.
External consultants Munich Re does not engage external consultants to draft or implement remuneration systems for the Board of Management.
Reduced occupational pension on early retirement Members who joined the Board of Management before 2017 are entitled to a reduced occupational pension on early retirement if the contract of employment is terminated as a result of non-extension or revocation of their appointment without the Board members having given cause for this through a gross violation of their duties or having requested it. This applies where the Board members have already passed the age of 50, have been in the employment of the Company for more than ten years when the contract terminates, and have had their appointment to the Board of Management extended at least once.
Benefit: − In the case of defined contribution plans: Annuity based on the policy reserve or payment of the policy reserve as a lump sum at the date the insured event occurs.
Pay ratios In the reporting year, the target overall direct remuneration of the Chairman of the Board of Management was 39 (37) times the average target overall direct remuneration of all Company employees (excluding the Board of Management). The average target overall direct remuneration of all members of the Board of Management was 24 (22) times the average target overall direct remuneration of all employees (excluding the Board of Management).
Amounts payable for variable remuneration of the individual Board members in the event of 100% performance evaluation as per DRS 17 (revised 2010), corridor 0–200%1
Multi-year variable remuneration Multi-year bonus 2019 594,236 752,500 Multi-year bonus 2020 787,500 0 1,575,000 787,500 0 1,575,000
Other2 573,750 573,750 573,750 411,188 Total 2,846,375 1,721,375 3,971,375 2,128,484 2,276,919 1,151,919 3,401,919 2,181,532 Pension expenses 574,356 574,356 574,356 548,842 Total remuneration 2,846,375 1,721,375 3,971,375 2,128,484 2,851,275 1,726,275 3,976,275 2,730,374
Other3 382,500 382,500 382,500 Total 1,928,536 1,178,536 2,678,536 - 731,851 373,518 1,090,185 2,198,370 Pension expenses 182,750 182,750 182,750 548,574 Total remuneration 1,928,536 1,178,536 2,678,536 - 914,601 556,268 1,272,935 2,746,944
Multi-year variable remuneration Multi-year bonus 2019 297,500 297,500 Multi-year bonus 2020 350,000 0 700,000 350,000 0 700,000 0
In case of changes in the Supervisory Board and/or its committees, the remuneration was paid on a pro-rata basis, rounded up to the next full month.
Currency markets likewise experienced sharp fluctuations. For example, the US dollar ranged between €0.87 and €0.94 in March. At the end of December, the US dollar, the Canadian dollar and the British pound were all much lower against the euro compared with the end of 2019. On average, the year-on-year value of the euro in 2020 was somewhat higher against the US dollar, the Canadian dollar and the pound sterling. Further information on exchange rates can be found in the section Currency translation in the Notes to the consolidated financial statements.
Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft was hired to perform a limited assurance engagement on the combined non-financial statement. Any references to information outside the Group management report constitute outside information and are not part of the combined non-financial statement; they are not covered by the audit.
For us as risk carriers, risk management constitutes a key element of responsible and sustainable corporate governance. In addition to financial risks, we also include non-financial risks in the areas of environment, society and governance (ESG risks) in our internal risk management process.
Our established data protection and information security processes demonstrated their effectiveness even during the global shift of operations from offices to homes.
We have taken on a pioneering role in the market by consistently offering new insurance products. With our Munich Re Warranty Partner label, we have been offering manufacturers of photovoltaic modules 25 years of performance guarantee insurance coverage since 2009, and took a leading role in this area in 2020 as well. This coverage releases our policyholders, at least partially, from having to reserve capital against any potential guarantee claims, thus freeing up resources to be used instead for
R&D, for example. As a result, our policyholders’ major clients are insured against their companies’ filing for insolvency due to a guarantee claim. This leads to better financing terms and conditions not only for our policyholders, but for their clients as well. We also offer performance coverage for stationary battery storage, thus enabling the battery manufacturers to provide their customers with long-term insured performance guarantees. The insurance covers repair and exchange costs for system components (e.g. battery modules) above a given threshold. Another of our insurance products in the renewable energy sector is Wind Energy Yield Cover for the availability and performance of wind turbines, and the amount of wind. We also insure general contractors for offshore wind parks. Such contractors usually issue broad, multi-year guarantees to operators for the wind farm’s proper construction, material quality, long-term stability and functionality, amounting to up to 50% of the total project volume. Without our coverage, this risk would be too great for the contractor, and the projects could not be realised. Our product range also includes performance guarantee insurance for fuel cells and life-cycle industries, particularly recycling, and for biomass facilities.
Munich Re Group Annual Report 2020 natural disaster and promote sustainable economic growth, especially in developing countries and emerging markets, which are being hit particularly hard by climate change, due to the often overwhelming challenges of trying to prevent the losses. We support cooperation between governments and the private sector, also known as public-private partnerships, which are a key option for mitigating the effects of natural catastrophes and contributing to a quicker recovery – especially in lowincome countries. Since 2016, we have also been members at Board level of the Steering Committee of the Insurance Development Forum (IDF), and actively participate in working groups to develop pilot projects to insure against natural catastrophes in developing countries and emerging markets.
Our investment policy is based on three pillars: systematic integration of ESG criteria, key investment areas (e.g. renewable energy or green bonds), and specific exclusion criteria defined in our mandatory guidelines and orientation aids.
Given our aim of constantly improving our understanding of sustainability in investment, we apply MSCI ESG research and MSCI ESG ratings. With its high degree of global coverage of the most important asset classes, MSCI provides support in determining a sustainable investment portfolio and selecting sustainable individual investments. Our internal objective of investing at least 80% of our assets on the basis of recognised sustainability standards is still being taken into full account. As in previous years, this target – in terms of the €220bn (216bn) in investments that are relevant for calculating the sustainability ratio – was exceeded by far. We calculate this figure by applying a series of sustainability criteria for each asset class.
Our value-based management is characterised by the following aspects: − Risk capital, i.e. the capital required to cover the risks, is the basis of our value- and risk-based management. The capital requirement corresponds to the solvency capital requirement under Solvency II, as determined on the basis of our certified internal risk model. Information on the internal model is provided in the risk report, in the section Risks depicted in the internal model.
Information on events after the balance sheet date can be found in the Notes to the consolidated financial statements, (51) Events after the balance sheet date.
Loans 51,944 52,507 12,778 12,147 64,722 64,654 Other securities available for sale 155,389 151,558 17,293 14,370 155,389 151,558
Thereof: Fixed-interest 138,404 132,120 14,426 10,738 138,404 132,120 Thereof: Non-fixed-interest 16,985 19,438 2,866 3,632 16,985 19,438
Other securities at fair value through profit or loss 2,927 2,781 0 0 2,927 2,781 Thereof: Derivatives 2,339 2,099 0 0 2,339 2,099
Reinsurance treaty renewals in 2020 saw prices rise in regions affected by natural catastrophes. In other markets and lines of business, prices remained stable or increased
At €849m (787m), credit and bond reinsurance saw significant year-on-year growth in premium volume. Whilst traditional credit business posted a moderate rise, growth was mainly attributable to profitable new business in specialty and niche segments.
The market environment in direct industrial insurance is very attractive. The renewals in the North American market were marked by price increases. We were therefore able to substantially increase premium income in our direct facultative and corporate business, which was newly established in mid-2019, to €1,199m (906m). The result was gratifying.
Gross premiums written decreased marginally overall, chiefly owing to the sale of companies outside Germany as part of portfolio optimisation and negative currency effects. Adjusted for the sales and for currency effects, gross premiums written in the ERGO International segment would have increased by 2.3% year on year. The segment’s total premium income was also slightly down on the previous year.
Munich Re’s subordinated liabilities amounted to €5,047m (see the section Subordinated liabilities in the Notes to the consolidated financial statements). Of this sum, €4,883m were recognised as at the reporting date as eligible own funds pursuant to Solvency II. Under the supervisory regulations of Solvency II, subordinated liabilities are recognised as own funds provided that they are available at all times to cover losses on a going-concern basis.
Through active capital management, we strive to ensure that Munich Re’s capital satisfies all applicable standards. In addition to the capital requirements determined using our internal risk model, more far-reaching requirements by regulatory authorities, rating agencies and our key insurance markets must be met. The Solvency II ratio is a fundamental measure of Munich Re’s capital strength. Further information on this ratio can be found in the risk report. We aim to ensure that our financial strength is such that it enables us to take advantage of profitable opportunities for growth, is not significantly affected by normal fluctuations in capital market conditions, and remains at a reasonable level even in the wake of major loss events or substantial falls in the stock markets. At the same time, we also define an appropriate level of Group own funds as one which does not lastingly exceed that which is required. Excess capital is returned to our shareholders via dividends and share buy-backs. In practice, capital repatriation comes up against limits because German commercial law (the German Commercial Code; HGB) forces our parent, Munich Reinsurance Company, to maintain the claims equalisation provision in local GAAP accounting at a level that exceeds the economic requirements. This restricts the revenue reserves and profit distribution possibilities, but stabilises results in years with high claims expenditure. As at 31 December 2020, Munich Reinsurance Company’s claims equalisation provision totalled €10.0bn. Additional information can be found under Munich Reinsurance Company (information reported on the basis of German accountancy rules).
The powers of the members of the Board of Management are defined in Sections 71 and 76–94 of the Stock Corporation Act (AktG). The Board of Management has the following powers to issue and buy back shares: − The Annual General Meeting of 29 April 2020 authorised the Board of Management to buy back, with the consent of the Supervisory Board, shares until 28 April 2023 up to a total amount of 10% of the share capital at the time of the resolution, pursuant to Section 71(1) no. 8 of the Stock Corporation Act. The shares acquired plus other own shares in the possession of the Company, or attributable to the Company pursuant to Sections 71d and 71e of the Stock Corporation Act may at no time amount to more than 10% of the share capital. In accordance with the provisions of the authorisation, the shares may be acquired in various ways. The Board of Management is authorised to use shares thus acquired for all legally permissible purposes, in particular those specified in the authorisation, whilst excluding subscription rights. Among other things, the Board of Management is empowered under Section 71(1) no. 8 of the Stock Corporation Act to retire the shares without requiring further approval from the Annual General Meeting.
Quantitative risk monitoring based on indicators is carried out both centrally and within units. We monitor risks that cannot be expressed directly as an amount either centrally or in our units, depending on their materiality and allocation. The risk management system is regularly audited by Group Audit.
→ Group 31.12.2020 Prev. year Change €m €m €m % Property-casualty 9,413 8,833 580 6.6 Life and health 6,996 6,359 637 10.0 Market 10,730 10,080 650 6.4 Credit 5,210 4,206 1,004 23.9 Operational risk 1,186 1,051 135 12.8 Other1 779 670 109 16.3 Subtotal 34,314 31,199 3,115 10.0 Diversification effect –11,737 –10,681 –1,056 –9.9 Tax –3,396 –2,987 –409 –13.7 Total 19,180 17,531 1,649 9.4 1 Capital requirements for other financial sectors, e.g. institutions for occupational retirement provision.
In addition to traditional retrocession, we use alternative risk transfer for natural catastrophe risks in particular. Under this process, underwriting risks are transferred to the capital markets via special purpose vehicles.
The macroeconomic and industry environment of Munich Reinsurance Company essentially corresponds to that of the Group. Please see the section Macroeconomic and industry environment for more detailed information.
Combined ratio % 79.9 77.8 Underwriting result before claims equalisation provision and similar provisions €m
Company equity holders 1,211 2,724 –1,513 –55.5 V. Non-controlling interests 100 117 –17 –14.4 29,994 30,576 –582 –1.9 B. Subordinated liabilities (19) 5,047 3,839 1,208 31.5 C. Gross technical provisions I. Unearned premiums (20) 10,964 10,518 446 4.2 II. Provision for future policy benefits (21) 112,928 112,302 626 0.6 III. Provision for outstanding claims (22) 72,475 70,875 1,600 2.3 IV. Other technical provisions (23) 22,478 21,011 1,467 7.0 218,846 214,706 4,139 1.9 D. Gross technical provisions for unit-linked life insurance (24) 7,955 8,172 –216 –2.6 E. Other provisions (25) 5,438 5,291 147 2.8 F. Liabilities I. Bonds and notes issued (26) 272 297 –24 –8.2 II. Deposits retained on ceded business (27) 1,261 1,028 233 22.7 III. Current tax liabilities 1,823 1,913 –91 –4.7 IV. Other liabilities (28) 24,895 19,643 5,251 26.7 28,251 22,882 5,369 23.5 G. Deferred tax liabilities (14) 2,293 1,908 385 20.2 H. Liabilities related to non-current assets held for sale (16) 123 179 –57 –31.7 Total equity and liabilities 297,946 287,553 10,393 3.6
In November 2020, the Board of Management and Supervisory Board of Munich Reinsurance Company published an updated Declaration of Conformity with the German Corporate Governance Code in accordance with Section 161 of the German Stock Corporation Act (AktG), and made this Declaration permanently available to shareholders on the internet at www.munichre.com/cg-en.
Government bonds Germany 7,349 6,609 740 11 11 0 Rest of EU 28,341 29,922 –1,581 83 91 –8 USA 18,582 17,524 1,058 0 0 0 Other 25,491 21,326 4,165 38 40 –2 Corporate debt securities 47,971 46,898 1,073 1,131 1,092 39 Other 9,087 8,213 874 320 394 –74
From the Group’s perspective, financial assets with a higher credit risk – i.e. rated BB or lower, and measured at amortised cost under IAS 39 – were immaterial.
− IFRS 3 (rev. 5/2020), Business Combinations, References to the Conceptual Framework
To sponsor unconsolidated structured entities Munich Re provides structuring and consultancy services for clients within the context of the foundation and structuring of thirdparty securitisation vehicles. As at 31 December 2020, Munich Re did not have any interests in these structured entities.
Adjusted net expenses for claims and benefits –16,860 –13,701 –2,209 –2,025 –2,063 –2,107 Loss ratio % 74.7 66.6 61.9 60.3 62.7 63.7 Combined ratio % 105.6 100.2 92.4 92.3 92.7 94.3 1 Information on the combined ratio is provided in the combined management report under Tools of corporate management and strategic financial objectives. 2 Property-casualty business and short-term health business (excluding health insurance conducted like life insurance).
The main addition in the reporting year was the high-rise office building at 330 Madison Avenue in New York City. We recognised an impairment loss of €24m owing to the market upheavals triggered by the pandemic on the New York property market. The disposals relate in particular to residential and commercial property in Munich.
Inverse CMS floaters Theoretical price Swap curve Issuer-specific spreads Volatility matrix and skews
Other Pricing method Parameters Pricing model Real estate Theoretical market price Interest-rate curve
Acquisitions –95 198 1,430 2,666 Disposals –93 –65 –813 –1,097 Transfer to Level 3 0 0 2 4 Transfer out of Level 3 0 0 –1 –2,626 Changes in the fair value of derivatives –43 6 –43 6 Carrying amount at 31 Dec. financial year 981 455 7,749 6,537 Gains (losses) recognised in the consolidated income statement that are attributable to investments shown at the end of the financial year 775 75 695 162
We modified our investment policy already in spring 2020 in response to the current coronavirus pandemic. We used derivative financial instruments to economically hedge our equity holdings. Due to the low-interest-rate policy pursued by central banks, we posted an increase in extraordinary gains on interest-rate derivatives.
Deferred acquisition costs €m 31.12.2020 Prev. year Gross 9,617 9,664 Ceded share –498 –393 Net 9,119 9,272
In our segment reporting, we disclose how the non-current assets held for sale are allocated between the segments. Transactions between the disposal group and the Group’s continuing operations continued to be fully eliminated. The assets and liabilities of the disposal group and non-current assets held for sale are shown in the following table: Non-current assets and disposal groups held for sale €m 31.12.2020 Prev. year Assets Land and buildings, including buildings on third-party land
Munich Re Group Annual Report 2020 21 Provision for future policy benefits
The claims expenses for the financial year show payments made for the financial year and expenses for posting the claims reserve in that year. The provisions set up for claims from previous years are regularly updated using best estimates based on exposure and claims information and past claims experience. The respective change is shown under Claims expenses for previous years. The increase in the provisions for outstanding claims resulted from the increase in the IBNR reserve for COVID-19-related losses.
The pension obligations of Munich Reinsurance America, Inc. account for €746m (749m) of the present value of obligations under defined benefit plans, and €576m (562m) of plan assets. The obligations include pensions for employees and surviving dependants. The amount of the pensions generally depends on includable compensation and length of service. The plan is financed through a fund and pension provisions. The plan was closed to new members effective 1 January 2006 and to all remaining members effective 31 December 2011. With effect from 1 January 2012, all members now receive pension commitments in the form of defined contribution plans. There are also retiree medical-care benefit obligations.
There was an effect of €15m (17m) resulting from the asset ceiling on overfunded defined benefit plans.
Breakdown of expenses booked in the financial year €m 2020 Prev. year Net interest cost 27 41 Service cost 169 160 Other 1 –1 Total 198 200
The provisions for restructuring mainly concern €212m (246m) for the “ERGO Strategy Programme” and €70m (107m) for the comprehensive restructuring of the sales organisations of the ERGO Group. ERGO also posted further restructuring provisions of €1m (1m) for the discontinuation of new business and the winding up of the sales organisation in Belgium. The provision for multi-year variable remuneration includes components for multi-year performance and for the incentive plans. The Miscellaneous provisions comprise a large number of different items. The provisions for restructuring, early-retirement benefits/semiretirement, anniversary benefits, multi-year performance and incentive plans are mainly long term, whereas the provisions for commissions, salary obligations and other remuneration for desk and field staff, and miscellaneous are essentially short term.
Administrative expenses –2,841 –3,132 Change in deferred acquisition costs and contingent commissions, amortisation and impairment losses on acquired insurance portfolios 159 8 Gross operating expenses –13,379 –13,616
Other non-operating result, currency result and net finance costs €m 2020 Prev. year Other non-operating result –83 –91 Currency result –200 73 Net finance costs –223 –222
Additions 0 27,872 0 Number of rights (for 100% achievement of objectives) on 31 December 2018 31,268 27,872 0 Number of rights (for 100% achievement of objectives) on 1 January 2019 31,268 27,872 0
The members of the Supervisory Board and Board of Management did not receive any cash advances or loans in the year under review. For their service as employees of the Group, Supervisory Board members received remuneration in the amount of €1.2m (1.5m). The Board members hold insurance policies with companies belonging to Munich Re, and have small MEAG fund holdings. There were no other significant transactions between Board members and Munich Re.
Umspannwerk Hellberge GmbH & Co. KG, Zossen (equity: €0k; result for year: -€132k) 6.9000 welivit TOP SOLAR GmbH & Co. KG, Düsseldorf (equity: €80k; result for year: €48k) 0.0000 Zeguro Inc., Wilmington, Delaware (equity: -€37k; result for year: -€2,804k) 4.1300 1 Munich Reinsurance Company or one of its consolidated subsidiaries is a fully liable partner in this company.
− the accompanying consolidated financial statements comply, in all material respects, with the IFRSs as adopted by the EU, and the additional requirements of German commercial law pursuant to Section 315e(1) of the German Commercial Code [Handelsgesetzbuch, HGB] and, in compliance with these requirements, give a true and fair view of the assets, liabilities and financial
For the purpose of assessing the quality of estimates, we analysed the actual development of the previous year’s provision for outstanding claims based on the run-off results.
In the case of losses in connection with the Covid-19 pandemic – and particularly in life reinsurance in the United States – we assessed whether the Company is affected by the losses based on contractual agreements, and also assessed the measurement of the provisions.
Dr. Ott Dr. Kagermeier Wirtschaftsprüfer Wirtschaftsprüfer (German Public Auditor) (German Public Auditor)
We have performed a limited assurance engagement on the non-financial statement of Münchener RückversicherungsGesellschaft Aktiengesellschaft in München according to Section 289b of the German Commercial Code (HGB), which is combined with the non-financial statement of the group (hereafter Munich Re) according to Section 315b of the HGB, consisting of the section “combined non-financial statement” as well as the section “Group” in the combined management report being incorporated by reference, for the reporting period from 1 January 2020 to 31 December 2020 (hereafter “non-financial statement”).