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 />
Capital position<br />
Summary of economic capital disclosure<br />
Capital position<br />
€bn<br />
Available<br />
financial resources<br />
34 34.3 3<br />
<strong>Munich</strong> <strong>Re</strong> <strong>Group</strong><br />
31.12.07 31.12.06<br />
34 34.3 3 (30 (30.9) 9)<br />
Economic risk capital1 16.5<br />
16.5 (18.4)<br />
Economic capital buffer 12.9 4.9 17.8 (12.5)<br />
Economic capital buffer after<br />
finalised share buy-back y and 11.4 4.9 16.3 (10.8) ( )<br />
dividends 2<br />
1 Based on requirements of internal risk model (175% of VaR 99.5%).<br />
Strong economic capitalisation increased<br />
throughout 2007 despite share buy-back programme<br />
2 Announced share buy-back of €2.0bn in 2007/2008, thereof €0.4bn in January 2008; €1.1bn dividend paid in April 2008.<br />
Backup: <strong>Group</strong><br />
Segment<br />
overview<br />
Hybrid capital<br />
Technical provisions<br />
Net case reserves and IBNR add up to €41.3bn as at 31 December 2007<br />
<strong>Re</strong>insurance<br />
property-casualty<br />
Primary insurance<br />
life and health<br />
5%<br />
€2,177m<br />
<strong>Re</strong>insurance<br />
life and health<br />
8%<br />
€3,338m<br />
Others<br />
5%<br />
Engineering<br />
6%<br />
Marine, aviation,<br />
Space<br />
7%<br />
Accident<br />
9%<br />
Percentages do not add up to 100% due to rounding.<br />
€41.3bn<br />
€31.2bn<br />
Primary insurance<br />
property-casualty<br />
11%<br />
€4,626m<br />
<strong>Re</strong>insurance<br />
property-casualty<br />
75%<br />
€31,203m<br />
Liability<br />
33%<br />
Motor<br />
22%<br />
Fire<br />
17%<br />
75% of total<br />
<strong>Munich</strong> <strong>Re</strong><br />
<strong>Group</strong> reserves<br />
located in p-c<br />
reinsurance<br />
Historically, risk<br />
margin has been<br />
~3%–5% of<br />
carried reserves<br />
<strong>Munich</strong> <strong>Re</strong> <strong>Group</strong> – October 2008<br />
26<br />
<strong>Munich</strong> <strong>Re</strong> <strong>Group</strong> – October 2008<br />
27
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