Munich Re

Munich Re Group
Münchener Rückversicherungs-Gesellschaft AG
Aktiengesellschaft (FWB: MUV2)
Industry Financial services
Founded 19 April 1880
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 €48.8 billion (2014)[1]
€4,028 million (2014)[1]
Total assets €273 billion (2014)[1]
Total equity €30.3 billion (2014)[1]
Number of employees
 43,316 (2014)[1]
Website munichre.com

Munich Re Group (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

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 2014 the company's equity amounted to €30.3 billion. The group’s premium income for the year (gross premiums written) was €48.8 billion, with its consolidated result amounting to €3,171 million.[1]

In February 2010, U.S. investor Warren Buffett became Munich Re's largest single shareholder with 11.2 percent of the company.[3] As of February 2015 with he holds 11.6 percent of the company.

Structure

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

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 2014, gross premiums written in the reinsurance segment amounted to around €26.8bn.[1]

Primary insurance: ERGO Group

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 €16.7bn in 2014, ERGO is Germany’s second-largest primary insurance group following Allianz AG.[1]

Asset management

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. [4]

Munich Health

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,[5] have been distinguished by MENA Insurance Award, MENAIR, as “Most Innovative Reinsurer for the year 2015" and "TPA of the year 2015".[6]

Ownership

11.6% of the share capital are attributable to Warren E. Buffett and are held by several companies of his group (Berkshire Hathaway Inc., OBH Inc., National Indemnity Co.). According to the notification dated 15.10.2010 the investment serves the purpose of making trading profits and not of implementing strategic objectives.

Free float is stated to be nearly 90%, with around 178,000 shareholders (February 2015).[7]

Shareholder profile:[7]

Most shareholders are located in North America (around 34.5%), followed by Germany (34%), other European countries (19.7%), UK (10.3%), other countries (1.5%).[7]

Subsidiaries

Key figures

Accounts prepared according to IFRS.

Key figures Munich Re[1]
Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Gross premiums written (€bn) 38.2 37.4 37.3 37.8 41.4 45.5 49.5 52 51.1 48.8
Operating result (€m) 4,156 5,877 5,573 3,834 4,721 3,978 1,180 5,350 4,409 4,028
Taxes on income (€m) 1,014 1,648 801 1,372 1,264 692 -552 866 -108 312
Consolidated result (€bn) 2.751 3.519 3.923 1.579 2.564 2.422 712 3.211 3.342 3.171
Investments (€bn) 177.2 176.9 176.2 174.9 182.2 193.1 201.7 213.8 209.5 218.9
Technical provisions (€bn) 154.0 153.9 152.4 157.2 163.9 171.1 181.2 186.1 187.7 198.4
Equity (€bn) 24.3 26.3 25.3 21.1 22.3 23.0 23.3 27.4 26.2 30.3
Return on equity (%) 12.5 14.1 15.3 7.0 11.8 10.4 3.3 12.6 12.5 11.3
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

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 "Annual Report 2014" (PDF). Munich Re. Retrieved 10 April 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/media-relations/publications/press-releases/2015/2015-03-11-press-release/index.html
  5. ↑ http://mednet-mea.com/company_profile#.VPoTEPmUeSo
  6. ↑ http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20150216233937
  7. ↑ 7.0 7.1 7.2 "Shareholder Profile". Munich Re. Retrieved 10 April 2015.

External links