Munich Re Group Changing Gear gg
Munich Re Group Changing Gear gg
Munich Re Group Changing Gear gg
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Backup: <strong>Group</strong><br />
Risk trading<br />
Active use of capital markets<br />
Portfolio optimisation<br />
(e.g. placement of peak risks)<br />
Source of additional capacity when retro<br />
market is exhausted<br />
Diversification of capacity<br />
Capacity for new risks<br />
Risk trading solutions<br />
Managing our own risks Managing our clients’ risks<br />
Risk warehousing<br />
<strong>Re</strong>tain risks, e.g. basis, timing risk<br />
Investment in ILS (active investor in the<br />
primary and secondary market)<br />
Utilisation of free capacity<br />
"Stockpiling" of favourable capacity<br />
Backup: <strong>Group</strong><br />
Risk trading<br />
Gaining momentum<br />
For<br />
clients<br />
For<br />
<strong>Munich</strong><br />
<strong>Re</strong>’s<br />
bbook k<br />
Transaction Closing Volume Perils<br />
covered<br />
MIDORI Ltd. 10/2008 US$ 260m Earthquake<br />
Japan<br />
Muteki Ltd. 05/2008 US$ 300m<br />
Earthquake<br />
Japan<br />
Lakeside <strong>Re</strong> 12/2006 US$ 190m Earthquake<br />
California<br />
Queen Street Ltd. 03/3008 €170m Windstorm<br />
Europe<br />
Nathan Ltd. 02/2008 US$ 100m Extreme<br />
mortality<br />
Carillon Ltd. Series 2 05/2007 US$ 150m Hurricane<br />
US<br />
Carillon Ltd. Series 1 06/2006 US$ 85m<br />
H i Hurricane<br />
US<br />
Aiolos Ltd. 11/2005 €110m Windstorm<br />
Europe<br />
Consulting and project management<br />
<strong>Re</strong>structuring and selling<br />
<strong>Munich</strong> <strong>Re</strong> <strong>Group</strong><br />
Structuring and placement support<br />
Risk fronting and transformation<br />
Interim capacity provider to avoid shortfalls<br />
Pooling Solutions (offering to whole markets)<br />
Extension of "buy and hold" strategy<br />
Combine and restructure risks<br />
(e.g. via certificate)<br />
Stripping of opaque covers<br />
Sell at favourable terms and conditions<br />
Generation of risk-based<br />
and fee income<br />
<strong>Munich</strong> <strong>Re</strong> is active investor in<br />
secondary d market k t<br />
Improvement of own risk/return<br />
profile and cost efficiency<br />
Establishment of placement entity<br />
licensed in EU and Switzerland<br />
Offering one-stop shopping to<br />
clients as sponsors and ILS<br />
investors<br />
<strong>Munich</strong> <strong>Re</strong>’s Risk Trading Unit is a recognised player in the ILS market<br />
<strong>Munich</strong> <strong>Re</strong> <strong>Group</strong> – October 2008<br />
22<br />
<strong>Munich</strong> <strong>Re</strong> <strong>Group</strong> – October 2008<br />
23
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