Munich Re

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Munich Re Group
Münchener Rückversicherungs-Gesellschaft AG
Aktiengesellschaft (FWBMUV2)
Industry Financial services
Founded April 19, 1880; 136 years ago (1880-04-19)
Headquarters Munich, Germany
Area served
Worldwide
Key people
Nikolaus von Bomhard (CEO and Chairman of the executive board), Bernd Pischetsrieder (Chairman of the supervisory board)
Products Reinsurance, primary insurance, asset management
Revenue 50.4 billion (2015)[1]
€4,819 million (2015)[1]
Total assets €276.5 billion (2015)[1]
Total equity €30.8 billion (2015)[1]
Number of employees
43,554 (2015)[1]
Website munichre.com

Munich Re Group or Munich Reinsurance Company (German: Münchener Rück; Münchener Rückversicherungs-Gesellschaft) is a reinsurance company based in Munich, Germany. It is one of the world’s leading reinsurers.[2] ERGO, a Munich Re subsidiary, is the Group’s primary insurance arm. Munich Re's shares are listed on all German stock exchanges and on the Xetra electronic trading system. Munich Re is included in the DAX index at the Frankfurt Stock Exchange, the Euro Stoxx 50, and other indices.

History[edit]

Main building with courtyard on Königinstraße

In 1880, Carl von Thieme, a native of Erfurt, whose father was the director of Thuringia, founded Münchener Rückversicherungs-Gesellschaft together with Wilhelm von Finck (co-owner of the Merck Finck & Co bank) and Theodor von Cramer-Klett. This was followed by the founding of Allianz Versicherungs-Gesellschaft in 1890. Carl von Thieme was head of Munich Re until 1921, and Wilhelm von Finck served as Chairman of the supervisory board until 1924. Munich Re became renowned after the San Francisco earthquake of 1906 as the only insurer that remained solvent after paying out all the claims.

In 2015 the company's equity amounted to €31.0 billion. The group’s premium income for the year (gross premiums written) was €50.4 billion, with its consolidated result amounting to €3,122 million.[1]

In February 2010, U.S. investor Warren Buffett became Munich Re's largest single shareholder of the company.[3] As of December 2015 he reduced his holdings to less than 3 percent.[4]

Structure[edit]

MunichRe Courtyards

Besides its reinsurance business, the Munich Re Group also transacts primary insurance business through the ERGO Group, and, since 1999, asset management through MEAG (MUNICH ERGO AssetManagement GmbH).

Reinsurance[edit]

Munich Re has clients (insurance companies) worldwide. It assumes part of the risk covered by these insurance companies, as well as providing comprehensive advice on insurance business. In addition to its Munich head office, Munich Re has more than 50 Business Units around the world. Munich Re provides reinsurance cover for life, health, casualty, transport, aviation, space, fire and engineering business. In 2015, gross premiums written in the reinsurance segment amounted to around €28.2bn.[1]

Primary insurance: ERGO Group[edit]

Walking Man by Jonathan Borofsky in front of the business premises on Munich´s Leopoldstraße

Munich Re’s primary insurance operations are mainly concentrated in the ERGO Insurance Group. ERGO writes all types of life and health insurance and most types of property and casualty insurance. Outside Germany, ERGO is present in more than 30 countries around the world, servicing around 35 million clients. Members of the ERGO Group include the insurance subsidiaries D.A.S., DKV and Europäische Reiseversicherung AG, and the IT service provider ITERGO. With a gross premium written of about €16.5bn in 2015, ERGO is Germany’s second-largest primary insurance group following Allianz AG.[1]

Asset management[edit]

Founded in 1999, MEAG MUNICH ERGO AssetManagement GmbH manages the assets of Munich Re, ERGO, and external clients. Their purpose is to manage and increase investments of Munich Re and ERGO and third parties. MEAG manages Munich Re’s global investments amounting to €227bn.[5]

Munich Health[edit]

Until the end of 2009 this segment of the company was under reinsurance and primary insurance however since the beginning of 2010 it is the company's fourth major division. It oversees all of the group's health reinsurance, health primary insurance business as well as managed care services business abroad (outside of Germany).

Munich Health Reinsurance coupled with MedNet, managed care services arm of Munich Health,[6] have been distinguished by MENA Insurance Award, MENAIR, as “Most Innovative Reinsurer for the year 2015" and "TPA of the year 2015".[7]

Ownership[edit]

Free float is stated to be nearly 100%, with around 200,000 shareholders (February 2016).[8]

Shareholder profile:[8]

Most shareholders are located in Germany (around 37.2%), followed by North America (26.1%), other European countries (23.2%), UK (12.9%), other countries (0.6%).[8]

Subsidiaries[edit]

Key figures[edit]

Accounts prepared according to IFRS.

Key figures Munich Re[1]
Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gross premiums written (€bn) 38.2 37.4 37.3 37.8 41.4 45.5 49.5 52 51.1 48.8 50.4
Operating result (€m) 4,156 5,877 5,573 3,834 4,721 3,978 1,180 5,350 4,409 4,027 4,819
Taxes on income (€m) 1,014 1,648 801 1,372 1,264 692 -552 866 -108 312 -476
Consolidated result (€m) 2,751 3,519 3,923 1,579 2,564 2,422 712 3,211 3,342 3,171 3,122
Investments (€bn) 177.2 176.9 176.2 174.9 182.2 193.1 201.7 213.8 209.5 218.9 215.1
Technical provisions (€bn) 154.0 153.9 152.4 157.2 163.9 171.1 181.2 186.1 187.7 198.4 198.5
Equity (€bn) 24.3 26.3 25.3 21.1 22.3 23.0 23.3 27.4 26.2 30.3 31.0
Return on equity (%) 12.5 14.1 15.3 7.0 11.8 10.4 3.3 12.6 12.5 11.3 10.0
Number of employees as of 31. December 37,953 37,210 38,634 44,209 47,249 46,915 47,206 45,437 44,665 43,316 43,554

Munich Re Foundation[edit]

The Munich Re Foundation is a charitable organisation, which was founded by Munich Re; the foundation started its work on 7 April 2005.

The foundation is equipped with a capital of €50 million and works predominantly in newly industrializing and developing countries. The main topics of the foundation are:

The prime concern of the foundation is to develop solutions for people at risk. The knowledge of Munich Re's experts should therefore be translated into action. Hence, the working motto of the foundation is ‘Munich Re Foundation – from knowledge to action’. The main activities of the foundation concentrate on four fields: knowledge accumulation and implementation, clarification and sensitisation, networking of experts as well as direct help and support of local projects.

The foundation works with local, national as well as international partners. The majority of projects fit within a global framework. Since adaptation to climate and environmental change is much more difficult for poorer countries, the focus of the foundation is primarily on people in the developing world.

References[edit]

  1. ^ a b c d e f g h i "Munich Re Annual Report 2015". 
  2. ^ Aglionby, John (3 May 2009). "Munich Re pilots Jakarta flood policy". Financial Times. Retrieved 2009-05-09. 
  3. ^ "Warren Buffett now Munich Re's biggest shareholder". Finanz Nachrichten. AFX News. 12 February 2010. Retrieved 17 November 2011. 
  4. ^ http://www.munichre.com/en/ir/publications/notifications/notifications-2015/index.html
  5. ^ http://www.munichre.com/en/media-relations/publications/press-releases/2015/2015-03-11-press-release/index.html
  6. ^ http://mednet-mea.com/company_profile#.VPoTEPmUeSo
  7. ^ http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20150216233937.  Missing or empty |title= (help)[dead link]
  8. ^ a b c "Shareholder Profile". Munich Re. Retrieved 17 March 2016. 

External links[edit]