Munich Re2016年年度報告.pdf

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1、WE PROGRESS AS ONEGroup Annual Report 2016Munich ReKey figures(IFRS)1 For 2013,2014,2015 and 2016,this contains treasury shares earmarked for retirement.2 Including those apportionable to minority interests and policyholders.3 Previous years figures adjusted owing to IAS 8;see“Changes in accounting

2、policies and other adjustments”.4 Excluding health insurance conducted like life insurance.Key figures(IFRS)Munich Re at a glance(XLS,45 KB)Key figures(IFRS)Reinsurance(XLS,43 KB)Key figures(IFRS)ERGO(XLS,41 KB)Key figures(IFRS)Munich Health(XLS,42 KB)Munich Health 2016 2015 2014 2013 2012Gross prem

3、iums written bn 5.0 5.6 5.3 6.6 6.7Investments (incl.insurance-related investments)bn 4.7 4.1 3.9 3.6 4.2Net technical provisions bn 3.2 2.8 2.5 2.2 2.2Combined ratio4%98.5 99.9 98.8 98.3 100.2ERGO 2016 2015 2014 2013 2012Gross premiums written bn 16.0 16.5 16.7 16.7 17.1Investments (incl.insurance-

4、related investments)bn 135.4 131.0 135.5 126.7 124.9Net technical provisions bn 133.6 130.3 132.4 125.1 122.8Combined ratio property-casualty Germany%97.0 97.9 95.3 96.7 98.0Combined ratio International%99.0 104.7 97.3 98.7 99.8Reinsurance 2016 2015 2014 2013 2012Gross premiums written bn 27.8 28.2

5、26.8 27.8 28.2Investments (incl.insurance-related investments)bn 88.9 89.2 88.0 79.2 83.8Net technical provisions bn 65.5 65.4 63.5 60.5 61.1Major losses(net)m 1,542 1,046 1,162 1,689 1,799Natural catastrophe losses m 929 149 538 764 1,284Combined ratio property-casualty%95.7 89.7 92.7 92.1 91.0Muni

6、ch Re at a glance 2016 2015 2014 2013 2012Gross premiums written bn 48.9 50.4 48.8 51.1 52.0Net earned premiums bn 47.1 48.3 47.4 49.2 50.5Net expenses for claims and benefits bn 38.5 38.7 39.7 39.9 41.0Net operating expenses bn 12.3 12.4 12.0 12.4 12.6Operating result m 4,025 4,819 4,027 4,398 5,34

7、9Taxes on income m 760 476 312 108 878Consolidated result m 2,581 3,122 3,170 3,333 3,204Attributable to non-controlling interests m 1 15 18 29 16Earnings per share 16.13 18.73 18.31 18.45 17.94Dividend per share 8.60 8.25 7.75 7.25 7.00Dividend payout m 1,338 1,329 1,293 1,254 1,255Share price at 3

8、1 December 179.65 184.55 165.75 160.15 136.00Munich Res market capitalisation at 31 December1 bn 28.9 30.8 28.7 28.7 24.4Carrying amount per share 200.86 188.40 178.13 146.15 152.34Investments bn 219.4 215.1 218.9 202.2 213.8Insurance-related investments bn 9.6 9.2 8.5 7.3 Equity bn 31.8 31.0 30.3 2

9、6.2 27.4Return on equity%8.1 10.0 11.3 12.5 12.5Off-balance-sheet unrealised gains and losses2 bn 17.3 16.0 17.4 8.7 11.0Net technical provisions bn 202.2 198.5 198.4 187.7 186.1Balance sheet total3 bn 267.8 268.9 265.6 254.3 258.4Staff at 31 December 43,428 43,554 43,316 44,665 45,4371Munich Re Gro

10、up Annual Report 2016Munich Re at a glanceKey figures Inside front coverQuarterly figures Inside back coverImportant dates Back coverLetter to shareholders 003Corporate governance 007Report of the Supervisory Board 009Corporate governance report 014Combined management report 021Group 023Macroeconomi

11、c and industry environment 045Important tools of corporate management 046Business performance 048Financial position 061Risk report 066Opportunities report 075Prospects 078Munich Reinsurance Company(Information reported on the basis of German accountancy rules)083 Consolidated financial statements an

12、d notes 091Consolidated balance sheet 094Consolidated income statement 096Statement of recognised income and expense 097Group statement of changes in equity 098Consolidated cash flow statement 100Notes 101 Auditors report 178 Responsibility statement 179 Imprint/Service 180More detailed lists of con

13、tents are provided on the pagesseparating the individual sections.Due to rounding,there may be minor deviations in summations and in the calculation of percentages in the present report.This document is a translation of the original German version and is intended to be used for informational purpose

14、s only.While every effort has been made to ensure the accuracy and completeness of the translation,please note that the German original is binding.123ContentsGroup Annual Report 2016Munich Re Group Annual Report 20163To our shareholdersLike any shareholder,you must ask yourself from time to time:hav

15、e I invested my money in the right company?The quality of a company becomes evident not in boom years,but when things become more difficult.Munich Re has been experiencing a challenging period for some time now due to continuing low-interest-rate policies,and the consequential intensive competition

16、on the reinsurance markets.Since 2012,these two effects alone have had an overall negative impact of over 1bn on our profits.Nevertheless,Munich Re has posted rather good results in recent years,without having to veer away from its path of sustainable development.The same is true for 2016.A profit o

17、f 2.6bn is pleasing,and falls within the upper half of the profit guidance of 2.32.8bn we forecast at the start of the year.This result allows us to propose an increase in the dividend to 8.60 per share.Munich Re is adhering to its shareholder-friendly and sustainable dividend policy.We are confiden

18、t that we will be able to sustain this higher level in the future.On the one hand,this confidence rests on the strength of our balance sheet.The solvency ratio is above average at 267%,and our investments show valuation reserves of 28bn.We continue to take a conservative approach when measuring our

19、assets and liabilities,particularly the loss reserves that are so important for us.As before,the settlement of claims and Dr.Nikolaus von BomhardChairman of Munich ReinsuranceCompanys Board of ManagementTo our shareholders4Munich Re Group Annual Report 2016 regular restructuring of investments shoul

20、d generate profits over time.In these challenging and uncertain times,we do not have unrealistically high financial targets that require us to erode our financial substance.You can be sure of that.On the other hand,our confidence is also based on changes that we have already introduced which will ha

21、ve a positive impact on the consolidated result in the future.First,I would like to mention our initiatives in the areas of innovation and digitalisation.In recent years,we have built up a potent innovation infrastructure,and established many partnerships with promising start-ups.Our pipeline is ove

22、rflowing with new insurance products and innovative services.The digitalisation of important processes within our business is progressing well.In this year,and in the coming years,we will continue to work hard to develop as many of these innovations as possible to the point where they make a visible

23、 contribution to the Groups profits.At ERGO,we have also introduced changes that promise significantly higher earnings potential in the future.We expect that as from 2021 primary insurance will provide an annual contribution to profits of 600m.To make this possible,we introduced the ERGO Strategy Pr

24、ogramme last year.From the shareholders perspective,we are investing around 1bn,in particular in infrastructure that is fit for the future.ERGO will have modern and more flexible IT systems,which will allow the opportunities offered by digitalisation to be utilised for the benefit of our clients.The

25、 Strategy Programme will also ensure a more efficient settlement of life insurance business,while accelerating development of new,attractive retirement provision products for our customers.These measures will be accompanied by a significant cost-cutting programme.We reorganised our health business w

26、ith effect from 1 February 2017.The reinsurance units of Munich Health were allocated to the Life Reinsurance division,and responsibility for health primary insurance business was transferred to ERGO.Munich Health had been doing well recently,and its contribution to the consolidated profit of around

27、 140m for 2016 beat expectations.However,in recent years Munich Health has not been able to develop dynamically profitable growth.But the 5To our shareholdersMunich Re Group Annual Report 2016crucial point for the decision to integrate the Munich Health units into our two largest fields of business

28、was due to the changing demand from our clients.They are increasingly less likely to ask for separate reinsurance and primary insurance solutions,and seek a cross-divisional and integrated approach to life and health business.At the same time,digitalisation and the associated potential offered by da

29、ta analysis opens up new possibilities for both fields,and these can be better exploited by being combined under one roof.Munich Re is also a company in transition.Digitalisation is shifting client and customer demand,and enabling a comprehensive reorganisation of our business.Innovative business mo

30、dels and partnerships that would previously not have been taken into consideration are now being set up.All this has the effect of changing our company.My successor as Chairman of the Board of Management,Joachim Wenning,will continue to drive this process forwards.Thanks to our strong balance sheet,

31、we are able to operate from a position of strength in difficult times such as we are currently experiencing.Thanks to the huge pool of expertise offered by our staff,we have the creative potential to set today the foundation of tomorrows profits.So ask yourself again:have I invested my money in the

32、right company?In my opinion,the answer is:yes,you certainly have!With my warmest regards,Nikolaus von Bomhard71Corporate GovernanceCorporate governanceCorporate governanceContents8Report of the Supervisory Board 009Corporate governance report 014Corporate legal structure 014Annual General Meeting 01

33、4 Board of Management 014Collaboration between Board of Management and Supervisory Board 015Supervisory Board 015Share trading and shares held by Board members 016Governing bodies of Munich Re 016Munich Re Group Annual Report 20169Corporate governanceReport of the Supervisory BoardLadies and gentlem

34、en,In the financial year 2016,the Supervisory Board fulfilled all the tasks and duties incumbent upon it by law and under the Articles of Association and its rules of procedure.All members of the Supervisory Board and of the committees attended more than half of the respective meetings.We monitored

35、the Board of Management in its conduct of the business,and gave advice on all matters of importance for the Group.No inspection measures in accordance with Section 111(2)sentence 1 of the German Stock Corporation Act(AktG)were required at any time.Collaboration between Supervisory Board and Board of

36、 Management The Board of Management involved the Supervisory Board in all important business transactions and decisions of fundamental significance for the Group.During meetings,we held in-depth discussions with the Board of Management about the information provided to us.Cooperation with the Board

37、of Management was characterised in every regard by and responsible action aimed at promoting the successful development of Munich Re.The Board of Management satisfied its reporting obligations towards the Supervisory Board in all respects,both verbally and in writing.Outside of Supervisory Board mee

38、tings,the Board of Management informed us promptly about important events in the Group,for example ERGOs Strategy Programme and modified structure.The shareholder representatives and the employee representatives met regularly with the Chairman of the Board of Management for separate discussions in p

39、reparation for the meetings.Between meetings,I held regular discussions with Nikolaus von Bomhard,Chairman of the Board of Management,about individual questions of strategic development and risk management,as well as about Munich Res current business situation.Also between meetings,the Chairman of t

40、he Audit Committee,Henning Kagermann,remained in close contact with Jrg Schneider,the member of the Board of Management responsible for Group reporting.Focal points of the meetings of the full Supervisory BoardThere were six meetings of the Supervisory Board in the year under review.We regularly hel

41、d in-depth discussions with the Board of Management about business performance and current topics,with a special focus on strategic considerations of the Board of Management with respect to the individual fields of business.The Board of Management reported regularly on Munich Res investments,address

42、ing the development of the global economy and financial markets in detail,and their impact on the Groups assets and earnings.The Board also supplied us with frequent updates on the objectives and implementation of the ERGO Strategy Programme.Moreover,we took advantage of the opportunity to confer on

43、 matters involving the Board of Management even in the Boards absence.We also dealt with the following topics in the individual meetings in 2016:The meeting on 15 March focused on the Company and Group financial statements for 2015,the combined management report,and the motions for resolution by the

44、 2016 Annual General Meeting.Furthermore,we conferred and took decisions regarding the extension of two appointments to the Board of Management,the appointment of the new Chairman of the Board of Management,and established the personal objectives for the Board members variable remuneration for 2016.

45、We were also updated on the Group-wide compliance management system.The meeting on 26 April dealt with matters involving the Board of Management,specifically the evaluation of the individual Board members annual performance for 2015 and their multi-year performance for 20132015.On 27 April,directly

46、prior to the Annual General Meeting,we heard the Board of Managements report on the present status of business performance in 2016.We also used the meeting to make last-minute preparations for the Annual General Meeting.Bernd PischetsriederChairman of the Supervisory BoardMunich Re Group Annual Repo

47、rt 2016Corporate governanceReport of the Supervisory Board10On 12 July,we discussed the reinsurance groups result situation in a persistently challenging market environment.Moreover,we considered the new regulations concerning the market abuse regime and adopted guidelines for handling inside inform

48、ation in the Supervisory Boards area of responsibility.Beyond this,we were briefed on the 2015 compensation report in accordance with the German Remuneration Regulation for Insurance Companies(VersVergV).On 18 October,we discussed corporate governance issues including the results of the annual effic

49、iency review,the adoption of amendments to the Audit Committees rules of procedure to accommodate the requirements of the German Audit Reform Act(AReG),and the resolution regarding the annual Declaration of Conformity.We also took a decision regarding the extension of an appointment to the Board of

50、Management,and the Board of Management reported on Munich Healths business performance.After a comprehensive discussion,on 6 December we decided on remuneration for the Board of Management as from 2017.We also made decisions on changes to Board of Management contracts and guidelines on fringe benefi

51、ts.We looked into the Groups risk strategy in the course of the report on Munich Res risk situation by the Group Chief Risk Officer.The Board reported on Group planning for 2017 to 2019.In this context,we adopted changes to the rules of procedure and distribution of responsibilities for the Board of

52、 Management.The Board also presented us with the Group human resources report 2015/2016 and detailed the focal points of human resources work and workforce planning within the Group.There was also a report on Munich Res investment management.Work of the committeesThere are five Supervisory Board com

53、mittees.These are assigned certain matters for resolution and also prepare the topics which are to be addressed and decided upon by the full Supervisory Board.At each Supervisory Board meeting,information about the work of the committees was provided to the full Board by the respective Chairs of the

54、 committees.Details of the tasks of the committees and their composition can be found in the Statement of Corporate Governance at members of the Supervisory Board and membership of the Supervisory Board Committees can be seen on page 17 f.and at Personnel Committee held five meetings in the period u

55、nder review.It essentially prepared the resolutions on matters involving the Board of Management already mentioned in the report on the work of the full Supervisory Board.It also dealt with seats held by members of the Board of Management on supervisory,advisory and similar boards,and with Group-wid

56、e succession planning,especially with respect to Board-level appointments.At its four meetings in 2016,the Standing Committee dealt with the preparation of the respective Supervisory Board meetings and topics of corporate governance.In addition,the Standing Committee carried out a review of the effi

57、ciency of the Supervisory Boards work in 2016,and determined that,overall,the reporting by the Board of Management and the work of the Supervisory Board was efficient and appropriate.Regular reports by the Chairman of the Board of Management covered changes to the shareholder structure and the statu

58、s of the share buy-back programme.The Committee also received the annual report on expenses for donations and sponsoring.The Audit Committee met six times in 2016,and two of these meetings were attended by the external auditors.At the meetings attended by the auditors,the Committee discussed the Com

59、pany and Group financial statements,the combined management report,the auditors report and the Board of Managements proposal Munich Re Group Annual Report 201611Corporate governanceReport of the Supervisory Boardfor the appropriation of the net retained profits for the financial year 2015.The Audit

60、Committee also considered the 2016 Quarterly Statements,which it reviewed in conjunction with the auditor.The Committee heard regular reports on the current status of the Solvency II implementation project,and discussed in these meetings both initial and quarterly reporting to the Supervisory Author

61、ity.Other key tasks of the Committee consisted in monitoring the Groups risk situation and risk management on an ongoing basis,and developing a risk strategy.In addition to quarterly written reports,the Committee also obtained detailed verbal information from the Group Chief Risk Officer on several

62、occasions,and heard reports from the head of the actuarial function.Further issues discussed regularly were the internal control system and compliance topics.The Head of Group Audit informed the members of the Committee in full about the outcome of the audits for 2015 and the audit planning for 2016

63、.The Committee received regular updates on the current status of individual compliance issues and the progress of audits.In the absence of the Board of Management,the members of the Committee took advantage of the opportunity to confer amongst themselves or with the Head of Group Audit,the Group Chi

64、ef Compliance Officer,the Group Chief Risk Officer and the external auditors.Furthermore,the Audit Committee reviewed and monitored the auditors independence.The Committee passed guidelines on the awarding of service contracts to the auditor and conducted the approval process required under these gu

65、idelines.The Audit Committee regularly calls for reports on the auditors new activities beyond the auditing of the annual financial statements and on the utilisation of the statutory limit for awarding such contracts.Following a resolution by the full Supervisory Board,the Chair of the Committee com

66、missioned KPMG with the audit for the 2016 financial year,and also commissioned the auditors review of the Half-Year Financial Report 2016.The Nomination Committee met three times in 2016 and discussed suitable candidates for election to the Supervisory Board.In proposing nominations,the Committee t

67、ook account of the objectives set by the Supervisory Board for composition of the Committee and the set of criteria,which it updated in the year under review.There was no need to convene the Conference Committee in 2016.Corporate governance and Declaration of ConformityThe Supervisory Board pays clo

68、se attention to good corporate governance.Together with the Board of Management,we therefore published the mandatory annual Declaration of Conformity pursuant to Section 161 of the German Stock Corporation Act(AktG)in November 2016.We again complied with all recommendations of the German Corporate G

69、overnance Code,and will continue to do so in future.We confirmed the assessment that all 20 members of the Supervisory Board are to be regarded as independent and that they do not have any relevant conflicts of interests.Details of this can be found in the Corporate Governance Report on page 15 f.Mu

70、nich Re offered the members of the Supervisory Board an internal information event in 2016.Nearly all took advantage of the opportunity to brief themselves on the objectives and tasks of the Capital Partners and Digital Partners units.Changes in the Board of Management Once Nikolaus von Bomhard had

71、expressed his wish to retire after the 2017 Annual General Meeting,the Personnel Committee and the plenary sessions of the Supervisory Board intensively explored the question of his successor.On 15 March 2016,having discussed the conceivable alternatives in depth,the Supervisory Board appointed Joac

72、him Wenning to be Nikolaus von Bomhards successor as Chairman of the Board of Management of Munich Re with effect from 27 April 2017.Joachim Wenning has been responsible for worldwide life reinsurance business on the Board of Management since the beginning of 2009;he has also been responsible for Hu

73、man Resources since 1 October 2013 and has served as Labour Relations Director since that Munich Re Group Annual Report 2016Corporate governanceReport of the Supervisory Board12time.With effect from 27 April 2017,in addition to his role as Chairman of the Board of Management,Joachim Wenning will als

74、o assume responsibility for the units currently reporting to Nikolaus von Bomhard.We are confident that,under the leadership of Joachim Wenning,the Board of Management is excellently equipped to meet the business challenges of the present and the future.Changes on the Supervisory BoardWith effect fr

75、om the end of the 2016 Annual General Meeting,Clement B.Booth was elected to the Supervisory Board as successor to Anton van Rossum.Ann-Kristin Achleitner was elected to the Audit Committee as successor to Anton van Rossum with effect from the end of the 2016 Annual General Meeting.Wolfgang Mayrhube

76、r retired from the Supervisory Board with effect from 31 December 2016.Renata Jungo Brngger was appointed to the Supervisory Board by an order of the Amtsgericht(Local Court)of Munich dated 3 January 2017.The Supervisory Board will propose to the 2017 Annual General Meeting of shareholders that Rena

77、ta Jungo Brngger be elected to the Supervisory Board for the remainder of Wolfgang Mayrhubers term of office.Dieter Spethmann passed away on 1 February 2016.He had been a member of the Supervisory Board of Munich Re from 1976 to 1998,and was its Chairman between 1978 and 1996.Dieter Spethmann made a

78、 major contribution to Munich Res transition into a diversified financial services provider.We have a great deal to thank him for,and mourn the loss of an exceptional man.Further information on corporate governance in general is available in the joint report of the Board of Management and Supervisor

79、y Board on page 14 ff.Company and Group financial statements for 2016 and Solvency II reporting KPMG Bayerische Treuhandgesellschaft Aktiengesellschaft Wirtschaftsprfungs-gesellschaft Steuerberatungsgesellschaft duly audited the Company and Group financial statements and the combined management repo

80、rt as at 31 December 2016,and issued them with an unqualified auditors opinion.The respective reports and the Board of Managements proposal for appropriation of the net retained profits were subsequently submitted directly to the members of the Supervisory Board.At its meeting on 6 February 2017,the

81、 Audit Committee had the opportunity to confer in detail about the preliminary year-end figures as at 31 December 2016.On 13 March 2016,it prepared the Supervisory Boards resolution on the adoption of the Company financial statements and the approval of the Group financial statements.To this end,the

82、 Audit Committee examined in advance the Company and Group financial statements,the combined management report and the Board of Managements proposal for appropriation of the net retained profits.It discussed these at length with the auditor present at the meeting,and gave detailed consideration to t

83、he auditors reports.The Chair of the Audit Committee briefed the full Supervisory Board about the outcome of its consultations at the balance sheet meeting.In its March meeting,the Audit Committee discussed the preliminary key figures under Solvency II reporting and the Solvency II ratio in particul

84、ar and reported on this in the plenary session.The full Supervisory Board also reviewed the Company and Group financial statements and the combined management report,and the proposal of the Board of Management for appropriation of the net retained profits.On the basis of this examination and having

85、heard the auditors report,the Supervisory Board raised no objections to the outcome of the external audit.It approved the Company and Group financial statements on 14 March 2017.The financial statements were thus adopted.Having carefully weighed all relevant aspects,the Supervisory Board followed th

86、e proposal of the Board of Management for appropriation of the net retained profits.Munich Re Group Annual Report 201613Corporate governanceReport of the Supervisory BoardWords of thanks to the Board of Management and employeesThe Supervisory Board wishes to thank all members of the Board of Managem

87、ent and staff worldwide.With their work and commitment,they have once again contributed to another gratifying result for Munich Re.Munich,14 March 2017For the Supervisory BoardBernd Pischetsrieder ChairmanCorporate governance report1 Corporate governance stands for a form of responsible company mana

88、gement and control geared to long-term creation of value.The German Corporate Governance Code contains the main legal rules to be observed by listed German companies.In addition,it includes recommendations and proposals based on nationally and internationally recognised standards of good and respons

89、ible management.We apply the highest standards to our operations and activities and therefore comply with all the recommendations and proposals of the German Corporate Governance Code.By adopting international guidelines such as the UN Global Compact,the Principles for Responsible Investment for the

90、 investments we make and the Principles for Sustainable Insurance for our core business,we further demonstrate our commitment to corporate responsibility.Efficient practices on the Board of Management and Supervisory Board,good collaboration between these bodies and with the Groups staff,an organisa

91、tional structure that fits the purpose of the Group and efficient processes for conducting business are core elements of good corporate governance.They help to secure the confidence of investors,clients,employees and the general public in our corporate activities.More information on corporate govern

92、ance can be found on our website at can also find the combined Statement on Corporate Governance in accordance with Sections 289a and 315(5)of the German Commercial Code(HGB),and the Declaration of Conformity by the Board of Management and Supervisory Board with the German Corporate Governance Code

93、in accordance with Section 161 of the German Stock Corporation Act(AktG).The remuneration report can be found on page 29 ff.of the combined management report.Corporate legal structureMnchener Rckversicherungs-Gesellschaft Aktien-gesellschaft in Mnchen(Munich Reinsurance Company)has three governing b

94、odies:the Annual General Meeting,the Board of Management and the Supervisory Board.Their functions and powers are defined by law,the Articles of Association,the Co-determination Agreement applicable to Munich Reinsurance Company,and by rules of procedure and internal guidelines.Employee co-determina

95、tion on the Supervisory Board is governed by the Co-determination Agreement concluded pursuant to the German Act on the Co-Determination of Employees in Cross-Border Mergers(MgVG).There,the principle of parity co-determination on the Supervisory Board has been strengthened by taking into account sta

96、ff employed in the rest of Europe.The supervisory requirements for(re)insurance companies,especially the German Insurance Supervision Act(VAG)and the European supervisory regulations(Solvency II implementing rules)are placing additional demands on corporate governance.They include specific rules on

97、various issues such as business organisation or the qualifications and remuneration of members of the Board of Management,Supervisory Board members and other individuals.Annual General MeetingThe Annual General Meeting regularly reaches a resolution on the appropriation of profits and approving the

98、actions of the Board of Management and Supervisory Board.Besides this,the Annual General Meeting elects the shareholder representatives on the Supervisory Board and,in particular,votes on changes to the Articles of Association and on individual capital measures.Certain corporate contracts also requi

99、re the approval of the Annual General Meeting to become effective.The principle of“one share,one vote”applies at the Companys Annual General Meeting.With the aim of making it easier for shareholders to take part and exercise their voting rights,the Company provides the option of online participation

100、 at the Annual General Meeting,and a postal vote(also electronically).Board of ManagementPursuant to Article 16 of the Articles of Association,the Board of Management consists of at least two members;beyond this,the number of members is determined by the Supervisory Board.When appointing the Board o

101、f Management,the Supervisory Board pays due regard to diversity.In 2016,the Board of Management of Munich Reinsurance Company had ten members,two of whom were women.The Board of Management is responsible for managing the Company,in particular for setting the Companys objectives and determining strat

102、egy.In doing so,it is obliged to safeguard Company interests and endeavour to achieve a sustainable long-term increase in the Companys value.The Board of Management is responsible for effecting adequate risk management and risk control in the Company.It must ensure that statutory requirements and in

103、ternal Company guidelines are abided by,and works to achieve their compliance by Group companies(compliance).ComplianceThe Group Compliance Division(GComp)of Munich Reinsurance Company reports directly to the Chairman of the Board of Management.GComp manages the compliance activities of Munich Re(Gr

104、oup)through Group-wide terms of reference,monitoring their 1 In accordance with Section 3.10 of the German Corporate Governance Code.Munich Re Group Annual Report 2016Corporate governanceCorporate governance report14Objectives of the Supervisory Board for its composition,diversity,independence and c

105、ompetences In accordance with Section 5.4.1(2)of the German Corporate Governance Code,the Supervisory Board has set itself the following objectives for its composition:The main criteria for selecting future members of the Supervisory Board are professional knowledge,personal abilities and experience

106、(especially of an international nature),independence,commitment to sustained corporate profitability,and enterprise of the nominated persons.The Supervisory Board should have at least sixteen independent members within the meaning of Section 5.4.2 of the German Corporate Governance Code,including at

107、 least eight shareholder representatives.No members of the Supervisory Board should have any relevant conflicts of interest.In selecting candidates for membership,the Supervisory Board should pay due regard to diversity,especially in terms of age,internationality and gender.The objective of having a

108、t least 30%of the seats on the Supervisory Board to be filled by women by the start of the following term of office continues to apply.With a 45%representation of women since 3 January 2017,up from 40%at the end of 2016,the Supervisory Boards objective has already been surpassed at this juncture.Fut

109、ure nominations of candidates for election to the Supervisory Board should also take into account that,as a rule,at the time of election no candidate should already have been on the Supervisory Board for a continuous period of more than ten years.Normally,Supervisory Board members should not serve o

110、n the Board for a continuous period of more than twelve years.In addition,the Supervisory Boards rules of procedure provide for a recommended age limit of 70 for candidates.The aforementioned objectives apply to the Supervisory Board as a whole.Shareholder and employee represent-atives will each con

111、tribute towards meeting these objectives.The Supervisory Board is of the opinion that all 20 of its members are to be regarded as independent within the meaning of Section 5.4.2 of the German Corporate Governance Code.The Supervisory Board is not aware of any business or personal relationship betwee

112、n a member and the Company,its governing bodies,a controlling shareholder or an entity affiliated with such a shareholder,as a result of which a major and not only temporary conflict of interest could arise.The Supervisory Board assumes that the employee representatives on the Supervisory Board elec

113、ted in accordance with the Act on the Co-Determination of Employees in Cross-Border Mergers and the Co-Determination Agreement are independent as a matter of principle.implementation on the basis of the compliance management system(CMS).The CMS is the methodical framework for the structured implemen

114、tation of early warning,risk control,consulting and supervision functions,as well as for the monitoring of background legal conditions.At the instigation of the Board of Management,another channel has been established to complement the external independent ombudsman and thus strengthen compliance wi

115、thin Munich Re:the compliance whistle-blowing portal.Employees and third parties can use this portal to anonymously report activities that may cause reputational damage,suspected criminal behaviour such as bribery and corruption,and contraventions of antitrust,insider trading and data protection law

116、s,and other violations of applicable legislation.More detailed information can be found at between Board of Management and Supervisory BoardThe Board of Management and the Supervisory Board cooperate closely for the benefit of the Company.The Board of Management coordinates the Companys strategic ap

117、proach with the Supervisory Board and discusses the current state of strategy implementation with it at regular intervals.The Board of Management reports regularly and as needed to the Supervisory Board about all questions relevant to the Company.Beyond this,the Board of Management reports to the Au

118、dit Committee on specific topics falling within the latters scope of responsibility.The Supervisory Board has defined the Board of Managements information and reporting requirements in detail.Specific types of transactions,such as certain investments and divestments pursuant to Article 4 of the Arti

119、cles of Association,require the Supervisory Boards consent.The Supervisory Boards approval is also required for sideline activities assumed by members of the Board of Management,and for important transactions involving members of the Board of Management or persons or undertakings closely associated

120、with them.Supervisory BoardIn compliance with Munich Reinsurance Companys Articles of Association,the Supervisory Board has 20 members.Half are representatives of the shareholders,elected by the Annual General Meeting.The other half are elected representatives of the Groups employees in the European

121、 Economic Area.The Supervisory Board monitors the Board of Management and gives counsel where appropriate,but it is not authorised to take management action in place of the Board of Management.In accordance with a special rule applicable to(re)insurance companies,the Supervisory Board also appoints

122、the external auditor for the Company and Group financial statements and for the Half-Year Financial Report.Munich Re Group Annual Report 201615Corporate governanceCorporate governance reportGoverning bodies of Munich ReBoard of ManagementDr.jur.Nikolaus von Bomhard(until 26 April 2017)Chairman of th

123、e Board of ManagementChairman of the Group CommitteeGroup Development1Group InvestmentsGroup CommunicationsGroup ComplianceGroup AuditGroup Human Resources Dr.oec.publ.Joachim WenningLabour Relations Director(until 26 April 2017)Life(until 31 January 2017)Human Resources(until 26 April 2017)From 27

124、April 2017Chairman of the Board of ManagementChairman of the Group CommitteeGroup Development1Group InvestmentsGroup CommunicationsGroup ComplianceGroup AuditGroup Human Resources Giuseppina AlboEurope and Latin America Dr.rer.pol.Ludger ArnoldussenGermany,Asia Pacific and AfricaCentral Procurement

125、ServicesDr.rer.pol.Thomas BlunckLife and Health(since 1 February 2017)Capital PartnersDigital PartnersSpecial and Financial Risks(until 31 January 2017)Reinsurance InvestmentsDr.jur.Doris Hpke Labour Relations Director(from 27 April 2017)Health(until 31 January 2017)Special and Financial Risks(from

126、1 February 2017)Human Resources(from 27 April 2017)Dr.rer.nat.Torsten JeworrekChairman of the Reinsurance CommitteeReinsurance DevelopmentCorporate UnderwritingClaims Accounting,Controlling and Central Reserving for ReinsuranceInformation TechnologyGeo Risks Research/Corporate Climate CentreThe Supe

127、rvisory Boards Nomination Committee selects candidates for the shareholder representatives based on a defined set of criteria.Besides the objectives mentioned,these criteria include a good overall understanding of the Companys business model,sufficient time availability and special professional skil

128、ls.Consequently,it must be ensured that the Supervisory Board as a whole possesses adequate knowledge,skills and experience with regard to markets,business processes,competitors,and the requirements of reinsurance,primary insurance,international health and investment,besides having an adequate knowl

129、edge of risk management,accounting,controlling and internal auditing,asset liability management,legal and regulatory affairs,compliance and tax matters.The set of criteria also includes other personal qualities of the Supervisory Board members,such as a strong commitment to corporate governance and

130、to a sustainable corporate strategy and business policy geared to creating long-term value for shareholders,strategic and problem-solving skills,and competence in dealing with change.Additional requirements will be defined on a case-by-case basis for specific tasks to be handled by the Supervisory B

131、oard.The European Electoral Board,which is responsible for the election of the employee representatives,also uses a corresponding set of criteria.In addition,the specific rules for co-determination apply.The Supervisory Board is of the opinion that its composition meets the defined criteria.Share tr

132、ading and shares held by Board membersThe Company has to be notified promptly of the acquisition or sale of Company shares(or financial instruments based on these)by members of the Board of Management and Supervisory Board and by specified persons closely related to or connected with them.This notif

133、ication must take place for acquisition and sales transactions totalling 5,000 or more in a single calendar year.Munich Reinsurance Company publishes information of this kind on its website without undue delay.1 Including responsibility for environmental,social and governance(ESG)issues.Munich Re Gr

134、oup Annual Report 2016Corporate governanceCorporate governance report16Christian FuhrmannMember since 22 April 2009,last re-elected 30 April 2014Head of Divisional Unit,Munich Reinsurance CompanyProf.Dr.rer.nat.Dr.h.c.Ursula GatherMember since 30 April 2014Rector of TU Dortmund UniversityProf.Dr.rer

135、.nat.Peter GrussMember since 22 April 2009,last re-elected 30 April 2014President and CEO of OIST Graduate University,JapanGerd HuslerMember since 30 April 2014Chairman of the Supervisory Board of BayernLB Dr.iur.Anne HorstmannMember since 30 April 2014Employee of ERGO Group AGIna HosenfelderMember

136、since 30 April 2014Employee of ERGO Group AGDeputy Chair of the Union Council of the Neue-Assekuranz-Gewerkschaft(NAG)Renata Jungo BrnggerMember since 3 January 2017 Member of the Board of Management of Daimler AGProf.Dr.rer.nat.Dr.Ing.E.h.Henning KagermannMember since 22 July 1999,last re-elected 3

137、0 April 2014President of acatech German Academy of Science and EngineeringWolfgang MayrhuberMember from 13 December 2002 until 31 December 2016Chairman of the Supervisory Board of Deutsche Lufthansa AGBeate MenschMember since 30 April 2014Trades Union Secretary,ver.di,HessenUlrich PlottkeMember sinc

138、e 30 April 2014Employee of ERGO Group AGAnton van RossumMember from 22 April 2009 until 27 April 2016Chairman of the Supervisory Board of Royal Vopak NV,NetherlandsAndrs Ruiz FegerMember since 22 April 2009,last re-elected 30 April 2014Employee of Munich Re,Sucursal en Espaa,SpainDr.rer.pol.Markus R

139、iePrimary Insurance/ERGOThird Party Asset ManagementDr.rer.pol.Peter RderGlobal Clients and North AmericaDr.jur.Jrg SchneiderChief Financial OfficerFinancial and Regulatory ReportingGroup ControllingCorporate Finance M&AIntegrated Risk ManagementGroup LegalGroup TaxationInvestor and Rating Agency Re

140、lationsSupervisory BoardDr.jur.Hans-Jrgen SchinzlerHonorary ChairmanFormer Chairman of the Supervisory BoardDr.Ing.E.h.Dipl.Ing.Bernd Pischetsrieder ChairmanMember since 17 April 2002,last re-elected 30 April 2014Former Chairman of the Board of Management of Volkswagen AGMarco Nrenberg Deputy Chairm

141、anMember since 22 April 2009,last re-elected 30 April 2014Employee of ERGO Group AGProf.Dr.oec.Dr.iur.Ann-Kristin AchleitnerMember since 3 January 2013,last re-elected 30 April 2014Scientific Co-Director of the Center for Entrepreneurial and Financial Studies(CEFS)at the Technical University of Muni

142、chClement B.BoothMember since 27 April 2016Member of the Board of Directors of Hyperion Insurance Group,United KingdomFrank FassinMember since 22 April 2009,last re-elected 30 April 2014Regional Section Head Financial Services,ver.di North Rhine-WestphaliaDr.jur.Benita Ferrero-WaldnerMember since 12

143、 February 2010,last re-elected 30 April 2014President of the Euroamrica Foundation,SpainPartner in the law firm of Cremades&Calvo Sotelo,SpainMunich Re Group Annual Report 201617Corporate governanceCorporate governance reportGabriele Sinz-ToporzysekMember since 30 April 2014Employee of ERGO Beratung

144、 und Vertrieb AGDr.phil.Ron SommerMember since 5 November 1998,last re-elected 30 April 2014Chairman of the Supervisory Board of MTS OJSC,RussiaAngelika WirtzMember since 30 April 2014Employee of Munich Reinsurance CompanyMembership of the Supervisory Board committeesStanding CommitteeDr.Ing.E.h.Dip

145、l.Ing.Bernd Pischetsrieder ChairGerd Husler(since 1 January 2017)Prof.Dr.rer.nat.Dr.Ing.E.h.Henning KagermannWolfgang Mayrhuber(until 31 December 2016)Marco NrenbergAndrs Ruiz FegerPersonnel CommitteeDr.Ing.E.h.Dipl.Ing.Bernd Pischetsrieder ChairProf.Dr.rer.nat.Dr.Ing.E.h.Henning Kagermann (since 1

146、January 2017)Wolfgang Mayrhuber(until 31 December 2016)Angelika WirtzAudit CommitteeProf.Dr.rer.nat.Dr.Ing.E.h.Henning Kagermann ChairProf.Dr.oec.Dr.iur.Ann-Kristin Achleitner(since 27 April 2016)Christian Fuhrmann Dr.iur.Anne HorstmannDr.Ing.E.h.Dipl.Ing.Bernd PischetsriederAnton van Rossum(until 2

147、7 April 2016)Nomination CommitteeDr.Ing.E.h.Dipl.Ing.Bernd Pischetsrieder ChairProf.Dr.oec.Dr.iur.Ann-Kristin Achleitner Prof.Dr.rer.nat.Dr.Ing.E.h.Henning KagermannConference CommitteeDr.Ing.E.h.Dipl.Ing.Bernd Pischetsrieder ChairProf.Dr.rer.nat.Dr.Ing.E.h.Henning KagermannMarco NrenbergAngelika Wi

148、rtzMunich Re Group Annual Report 2016Corporate governanceCorporate governance report18Other seats held by Board membersBoard of Management1Seats held on supervisory boards of other German companiesMembership of comparable bodies of German and foreign business enterprisesDr.jur.Nikolaus von Bomhard(C

149、hairman)ERGO Group AG2(Chair)Munich Health Holding AG2(Chair)Deutsche Post AGGiuseppina AlboIFG Companies,USADr.rer.pol.Ludger ArnoldussenDr.rer.pol.Thomas BlunckGlobal Aerospace Underwriting Managers Ltd.(GAUM),United Kingdom(Chair)New Reinsurance Company Ltd.,Switzerland2(Chair)Munich Re Digital P

150、artners Ltd.,United Kingdom2(Chair)Dr.jur.Doris HpkeDKV Seguros y Reaseguros S.A.,Spain2Apollo Munich Health Insurance Company Ltd.,IndiaDr.rer.nat.Torsten JeworrekERGO Digital Ventures AG2ERGO International AG2Dr.rer.pol.Markus RieERGO Beratung und Vertrieb AG2(Chair)ERGO International AG2(Chair)ER

151、GO Versicherung AG2(Chair)ERGO Digital Ventures AG2(Chair)ERGO Deutschland AG2(Chair)ITERGO Informationstechnologie GmbH2(Chair)DKV Deutsche Kranken versicherung AG2(Chair)MEAG MUNICH ERGO Kapital anlagegesellschaft mbH2(Chair)Dr.rer.pol.Peter RderEXTREMUS Versicherungs-AGMunich Re America Corp.,USA

152、2(Chair)Munich Reinsurance America,Inc.,USA2(Chair)Dr.jur.Jrg SchneiderMEAG MUNICH ERGO Kapitalanlagegesellschaft mbH2Dr.oec.publ.Joachim Wenning1 As at 31 December 2016.2 Own Group company within the meaning of Section 18 of the German Stock Corporation Act(AktG).Munich Re Group Annual Report 20161

153、9Corporate governanceCorporate governance report1 As at 31 December 2016.2 Own Group company within the meaning of Section 18 of the German Stock Corporation Act.3 Belong to the same corporate group(Hyperion group).4 Listed on the stock exchange.5 Belong to the same corporate group(Sanlam group).Sup

154、ervisory Board1Seats held on supervisory boards of other German companiesMembership of comparable bodies of German and foreign business enterprisesDr.Ing.E.h.Dipl.Ing.Bernd Pischetsrieder(Chairman)Daimler AGTetra Laval Group,SwitzerlandMarco Nrenberg (Deputy Chairman)ERGO Group AG2Prof.Dr.oec.Dr.iur

155、.Ann-Kristin Achleitner Deutsche Brse AG Linde AG METRO AGEngie S.A.(formerly GDF SUEZ S.A.),France Clement B.Booth(since 27 April 2016)DUAL International Ltd.,United Kingdom(Chair)3Hyperion Insurance Group Ltd.,United Kingdom3Sanlam Ltd.,South Africa4,5Sanlam Life Insurance Ltd.,South Africa4,5Fran

156、k FassinERGO Group AG2Provinzial NordWest Holding AGDr.jur.Benita Ferrero-Waldner Gas Natural Fenosa,SpainChristian FuhrmannProf.Dr.rer.nat.Dr.h.c.Ursula GatherProf.Dr.rer.nat.Peter Gruss Actelion Ltd.,SwitzerlandGerd HuslerBayernLB Holding AG(Chair)Dr.iur.Anne HorstmannERGO Group AG2Ina Hosenfelder

157、 Prof.Dr.rer.nat.Dr.Ing.E.h.Henning KagermannBayerische Motoren-Werke AG Deutsche Bank AGDeutsche Post AGWolfgang MayrhuberDeutsche Lufthansa AG(Chair)Infineon Technologies AG(Chair)Heico Corporation,USABeate MenschCommerzbank AGUlrich PlottkeERGO Group AG2Anton van Rossum(until 27 April 2016)Royal

158、Vopak NV,Netherlands(Chair)Andrs Ruiz Feger Gabriele Sinz-ToporzysekERGO Beratung und Vertrieb AG2Dr.phil.Ron Sommer PrJSC MTS,Ukraine(Chair)Tata Consultancy Services Ltd.,IndiaAngelika Wirtz Munich Re Group Annual Report 2016Corporate governanceCorporate governance report2021Combined management rep

159、ort2Combined management reportCombined management reportContent22This report combines the management reports of Munich Reinsurance Company and Munich Re(Group).Group 023Group structure 023Remuneration report 029Macroeconomic and industry environment 045Capital markets 045Insurance industry 045Import

160、ant tools of corporate management 046Munich Res management philosophy based on value creation 046The Groups corporate management tools 046Business performance 048Board of Managements overall assessment of the businessperformance and situation of the Group 048Business performance of the Group and ove

161、rview of investment performance 048Reinsurance Life 052Reinsurance Property-casualty 053ERGO 056ERGO Life and Health Germany 056 ERGO Property-casualty Germany 058ERGO International 059Munich Health 060Financial position 061Analysis of our capital structure 061Technical provisions 061Restraints on d

162、isposal 061 Capital position 062Information in accordance with Sections 315(4)and 289(4)of the German Commercial Code(HGB)and explanatory report of the Board of Management 062Risk report 066Risk governance and risk management system 066Significant risks 067Solvency ratio under Solvency II 074Other r

163、isks 074Summary 074Opportunities report 075Business environment 075Innovation and digitalisation 075Social and economic trends 076Expanding the limits of insurability 077Prospects 078Comparison of the prospects for 2016 with the result achieved 078Outlook for 2017 079Munich Reinsurance Company(Infor

164、mation reported on the basis of German accountancy rules)083Market environment and major factors of influence 083Business performance 083Financial position 087Combined Statement of Corporate Governance for the 2016 financial year pursuant to Section 289a and Section 315(5)of the German Commercial Co

165、de(HGB)088Further information 08823Combined management reportGroupMunich Re Group Annual Report 2016Group Munich Re is one of the worlds leading risk carriers and provides both insurance and reinsurance under one roof.This enables the Group to cover large stretches of the value chain in the risk mar

166、ket.Almost all reinsurance units operate under the uniform brand of Munich Re.ERGO Group AG(ERGO)is active in nearly all lines of life,health and property-casualty insurance.Munich Res investments worldwide are managed by MEAG,which also offers its expertise to private and institutional investors ou

167、tside the Group.The Munich Health field of business was disbanded on 1 February 2017.For up-to-date information about Munich Re,visit .A core guiding principle for Munich Re is acting in a far-sighted and responsible manner in the interests of both the Group and society.We have refined our Group-wid

168、e corporate responsibility strategy,based on the shared-value approach.This means that,in our business operations,we bring together economic and social progress to counter the most significant global challenges.We are therefore concentrating on mitigating the consequences of climate change;improving

169、 access to healthcare for all levels of society worldwide;and increasing risk awareness within our Group,among our staff,clients,and shareholders,and in society.We have the relevant abilities,resources and risk expertise to originate new solutions.In close cooperation with recognised partners,we gen

170、erate added value through our business solutions and initiatives.Our voluntary commitments,such as the ten principles of the United Nations Global Compact,the Principles for Responsible Investment,and the Principles for Sustainable Insurance are the foundations of our corporate responsibility approa

171、ch.In our insurance business and investment management,we proactively embrace environmental and social factors,as well as governance aspects.We have implemented a Group-wide environmental management system,and our operations have been carbon-neutral since 2015.With our social involvement,we fulfil o

172、ur role as a“good corporate citizen”,focusing on projects related to our core business.All information on our endeavours is available from our corporate responsibility portal at our estimation,the talent and performance of our staff are the keystones to Munich Res long-term success.Our international

173、 and diversity-focused human resources work sets great store in a corporate and leadership culture which promotes motivation and innovation in our highly qualified staff members.More information can be obtained under at 31 December 2016,our Group employed 43,428(43,554)staff members worldwide,27.9%(

174、27.6%)of whom worked in reinsurance,66.2%(66.6%)at ERGO and 5.9%(5.7%)in Munich Health.Group structureThe reinsurance companies of the Group operate globally and in virtually all classes of business.We offer a full range of products,from traditional reinsurance to innovative solutions for risk assum

175、ption.Our companies conduct their business from their respective headquarters and via a large number of branches,subsidiaries and affiliated companies.The reinsurance group also includes specialty primary insurers,whose business requires special competence in finding appropriate solutions.These prim

176、ary insurers have the words“Risk Solutions”added to their logo.In ERGO,we combine all Munich Res primary insurance activities.Some 74%(73%)of gross premiums written by ERGO derive from Germany,and 26%(27%)from international business mainly from central and eastern European countries.ERGO has also ex

177、tended its activities to Asian markets such as India,China,Vietnam,Singapore and Thailand.From 1 February 2017,responsibility for health primary insurance business was transferred from Munich Health to ERGO International.SegmentationMunich ReLifereinsuranceProperty-casualtyreinsuranceERGO Life and H

178、ealth GermanyERGO Property-casualty GermanyERGO InternationalMunich HealthCombined management reportGroup24Munich Re Group Annual Report 2016Besides assuming underwriting risks,we offer our clients a wide range of services,from medical expertise to automated risk assessment processes.In addition,we

179、continuously expand our tailor-made structured concepts for clients seeking to optimise their capitalisation,liquidity or other important performance indicators.Demand for reinsurance is also growing with regard to the capital market risks often embedded in savings products.We provide our clients wi

180、th comprehensive advice on product design while offering hedging for embedded options and guarantees linked to the capital markets.Our own exposure is transferred back to the capital markets.In order to ensure proximity to our clients,we are represented in many markets with local subsidiaries and br

181、anches.We write the main portion of our business via our Canadian branch and our subsidiary in the USA.We service the European markets from our operations in Germany,the United Kingdom,Spain and Italy.At the same time,we have a strong local presence in Australia and South Africa,and in all important

182、 growth markets in Asia and Latin America.Asian business is centrally managed by a dedicated branch in Singapore,which underlines the strategic importance of this region for life reinsurance.From 1 February 2017,the reinsurance units of Munich Health were merged with the Life Division.The property-c

183、asualty reinsurance divisionsGlobal Clients and North America handles our accounts with major international insurance groups,globally operating Lloyds syndicates and Bermuda companies.It also pools our know-how in the North American market and is responsible for our property-casualty subsidiaries in

184、 this region,and for international special lines business such as workers compensation.The three major US-based subsidiaries are Munich Reinsurance America,Inc.(Munich Re,US),The Hartford Steam Boiler Inspection and Insurance Company(HSB),and American Modern Insurance Group,Inc.(American Modern).Mun

185、ich Re,US writes property-casualty reinsurance business and niche primary insurance business.The divisions reinsurance portfolio is complemented by the primary insurers HSB and American Modern,which specialise in US primary insurance products for which understanding of the exposure and client proxim

186、ity are paramount.Our Europe and Latin America Division is responsible for property-casualty business with our clients from Europe(except Germany),Latin America and the Caribbean.Branches for example,in London,Madrid,Paris and Milan and our Brazilian subsidiary Munich Re do Brasil Resseguradora S.A.

187、,afford us market proximity and regional competence.Munich Reinsurance Company and ERGO Group AG are under unified control within the meaning of the German Stock Corporation Act(AktG).The relevant statutory regulations,control agreements and Group directives govern the distribution of responsibiliti

188、es and competences for key decisions between Group management and ERGO.Control and profit-transfer agreements are in place with many Group companies,especially between ERGO Group AG and its subsidiaries.ReinsuranceIn reinsurance,we operate in life and property-casualty business.Under reinsurance,we

189、also include specialised primary insurance activities that are handled by the reinsurance organisation and business from managing general agencies(MGAs).Munich Re does business with over 4,000 corporate clients from more than 160 countries.As reinsurers,we write our business in direct collaboration

190、with primary insurers,but also via brokers and increasingly within the framework of exclusive,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.Throu

191、gh our operating field Risk Solutions,we offer our clients in industrial and major-project business a wide range of specialised products,customised insurance solutions and services,which we manage from within our reinsurance organisation.Our clients thus have direct access to the expertise,innovativ

192、e 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.Focus of life reinsurance operationsOur internationa

193、l life business is written in the Life Division.This is split into three geographical regions and one international unit responsible for global activities in the area of risk and capital management.The focus of the divisions business activities is on traditional reinsurance solutions that concentrat

194、e on the transfer of mortality risk.Moreover,we have been increasingly active in the market for living benefits p roducts.These include products such as occupational disability,long-term care,and critical illness,which have seen increased demand.We also offer capacity for longevity risks.Until now,w

195、e have offered this only in the United Kingdom.25Combined management reportGroupMunich Re Group Annual Report 2016 dedicated to industrial clients and is part of Risk Solutions,also belongs to this division.In 2015,we pooled the Risk Trading Unit,which offers alternative capital market solutions and

196、 retrocession(our own reinsurance),and other product experts in a new unit called Capital Partners.Structured prospective and retrospective reinsurance solutions have thus been added,so that we can offer our clients all the tools needed for dealing with complex issues from a single source.In spring

197、2016,SFR founded a new unit:Digital Partners.This company works together with start-ups to develop online insurance business based on a purely digital technology platform.A key component of Munich Res risk solution strategy is Great Lakes Insurance SE,which is assigned to this division.It has its he

198、adquarters in Munich(relocated from London at the end of December 2016)and a large branch office in London.Its aim is to leverage business potential in niche primary insurance business which is close to reinsurance.The Germany,Asia Pacific and Africa Division conducts property-casualty business with

199、 our clients in Germany,Africa,Asia,Australia,New Zealand and the Pacific Islands.With offices in Australia and New Zealand,Munich Holdings of Australasia Pty.Ltd.ensures that we are on hand for our clients in the region.All the important Asian markets are serviced by our branch offices in Hong Kong

200、,Mumbai(since February 2017),Beijing,Singapore and Seoul,and by other representative offices.In the African market,we are represented by our subsidiary Munich Reinsurance Company of Africa Ltd.,headquartered in Johannesburg,and by other liaison offices.The branches in Asia guarantee our competitiven

201、ess in these key growth markets with their commitment and local presence.The Special and Financial Risks Division is in charge of the classes of credit,marine,aviation and space,agriculture,enterprise,and other selected contingency risks.The Corporate Insurance Partner unit,which is The reinsurance

202、units at a glance1Selected subsidiaries and branch offices outside GermanyLife Munich American Reassurance Company,Atlanta,Georgia Munich Re,Tokyo Munich Re,Toronto Munich Re,Auckland Munich Holdings of Australasia Pty.Ltd.,Sydney Munich Re,London Global Clients and American Alternative Insurance Co

203、rporation,Wilmington,Delaware2North America American Family Home Insurance Company,Jacksonville,Florida American Modern Home Insurance Company,Amelia,Ohio American Modern Insurance Group,Inc.,Amelia,Ohio American Western Home Insurance Company,Oklahoma City,Oklahoma Global Standards,LLC,Dover,Delawa

204、re HSB Engineering Insurance Ltd.,London HSB Group,Inc.,Dover,Delaware Munich Re Holding Company(UK)Ltd.,London Munich Reinsurance America,Inc.,Wilmington,Delaware2 Munich Reinsurance Company of Canada,Toronto,Ontario Temple Insurance Company,Toronto,Ontario The Hartford Steam Boiler Inspection and

205、Insurance Company,Hartford,Connecticut The Princeton Excess and Surplus Lines Insurance Company,Wilmington,Delaware The Midland Company,Cincinnati,OhioEurope and Latin America Munich Re do Brasil Resseguradora S.A.,So Paulo2 Munich Re,Madrid2 Munich Re,Milan Munich Re,Paris Munich Re,LondonCombined

206、management reportGroup26Munich Re Group Annual Report 2016protection insurance under the D.A.S.brand.As a specialist for unit-linked life insurance,VORSORGE Lebensversicherung supports the restructuring of private provision products in the low-interest-rate environment.DKV Deutsche Krankenver sicher

207、ung is a leading provider and specialist in the healthcare market,catering for privately and statutorily insured individuals alike with its broad range of supplementary covers.The specialist travel insurer ERV is an established carrier and a market leader internationally as well as in Germany.ERGOs

208、own sales company,ERGO Beratung und Vertrieb AG,bundles the various sales channels from tied intermediaries and brokers to banks and other cooperation partners.The ERGO Direkt com panies provide the expertise in digital marketing that is increasingly gaining in importance across the market.Their bro

209、ad-based portfolio,spanning all classes of business and a plethora of distribution channels coupled with an individual sales advice approach,enables attractive all-round provision for all client groups.In Europe and Asia,ERGO is represented by life and property insurers under the ERGO brand and lega

210、l pro tection insurers under the D.A.S.brand.Of ERGOs European companies,those in Austria,Poland,the Baltic states and Greece have a particularly strong market presence.In Greece,ERGO became the market leader in 2016 after acquiring a primary insurer there.As an experienced legal-protection speciali

211、st,D.A.S.too numbers amongst the leading players in each of its markets.With its ERGO Industrial Division,ERGO Versicherung AG services corporate clients in industrial insurance from its branches in Austria,the Netherlands,the United Kingdom,Switzerland and since 2016 France.ERGO Munich Res second p

212、illar is primary insurance business.ERGO Insurance Group was given a new organisational structure in 2016.German,international,and direct and digital business are bundled in three separate units under the umbrella of the newly named ERGO Group AG.In addition to the existing ERGO International AG,two

213、 new holding companies were founded in 2016:traditional German business will be concentrated in ERGO Deutschland AG.The third pillar,ERGO Digital Ventures AG,will be responsible for all of the Groups digital and direct activities,including ERGO Direkt business.Responsibility for the new ERGO Mobilit

214、y Solutions unit will lie with ERGO Digital Ventures from 2017,given the growing significance of automotive financial services.Via ERGO,we offer products in all the main classes of insurance:life insurance,German health insurance,and in nearly all lines of property-casualty insurance,as well as trav

215、el insurance and legal protection insurance.With these products in combination with the provision of assistance,other services and individual consultancy we cover the needs of private and corporate clients.ERGO serves over 35 million(mainly private)clients in over 30 countries,with the focus on Euro

216、pe and Asia.Up-to-date information on ERGO can be found at www.ergo-.With ERGO Lebensversicherung AG and ERGO Versicherung AG,our primary insurance arm is one of Germanys largest providers of life and property insurance.ERGO Versicherung AG also markets legal 1 A detailed list of shareholdings can b

217、e found on page 168 ff.in the notes to the consolidated financial statements.2 Units that also transact business in Munich Health and are therefore allocated proportionately to reinsurance.Germany,Asia Pacific and Africa Great Lakes,Sydney Calliden Insurance Ltd.,Sydney Great Lakes,Auckland Munich R

218、e,Auckland Munich Re,Beijing2 Munich Reinsurance Company of Africa Ltd.,Johannesburg Munich Holdings of Australasia Pty.Ltd.,Sydney Munich Re,Hong Kong2 Munich Re,Kuala Lumpur Munich Re,Seoul2 Munich Re,Singapore2 Munich Re,SydneySpecial and Financial Risks Great Lakes Insurance SE,Munich2 Great Lak

219、es,Baar Great Lakes,Dublin Great Lakes,Milan Munich Re of Malta p.l.c.,Ta Xbiex2 New Reinsurance Company Ltd.,Zurich227Combined management reportGroupMunich Re Group Annual Report 2016SSAIH is tapping into the potential of the major prov-ince of Shandong.ERGO broached yet another Asian market in 201

220、6 by acquiring shares in Thailands Thaisri Insurance.In Vietnam,Munich Res primary insurance arm has an interest in the property insurer GIC.The health primary insurance business managed by Munich Health was transferred to ERGO International from 1 February 2017.ERGO is participating in the dynamic

221、development of the Asian growth region via joint ventures in India and China,and acquisitions and investments in other countries.In India,we raised our stake in the property insurer HDFC ERGO to 48.7%in 2016.That same year,HDFC ERGO streng thened its market presence through the acquisition of anothe

222、r property insurer.In the Indian life insurance market,we are a joint venture partner in Avantha ERGO.In China,ERGO China Life a joint venture with the state-owned financial investor ERGO at a glance1Segment Selected subsidiariesLife and Health Germany DKV Deutsche Krankenversicherung Aktiengesellsc

223、haft,Cologne ERGO Direkt Krankenversicherung AG,Frth ERGO Direkt Lebensversicherung AG,Frth ERGO Direkt Versicherung AG,Frth ERGO Lebensversicherung Aktiengesellschaft,Hamburg ERGO Pensionskasse AG,Dsseldorf EUROPISCHE Reiseversicherung Aktiengesellschaft,Munich Victoria Lebensversicherung Aktienges

224、ellschaft,Dsseldorf VORSORGE Lebensversicherung Aktiengesellschaft,DsseldorfProperty-casualty Germany ERGO Versicherung Aktiengesellschaft,DsseldorfInternational AGROTIKI Insurance S.A.,Athens DAS Legal Expenses Insurance Company Limited,Bristol DAS Nederlandse Rechtsbijstand Verzekeringmaatschappij

225、 N.V.,Amsterdam ERGO General Insurance Company S.A.,Athens ERGO Insurance N.V.,Brussels ERGO Insurance SE,Tallinn ERGO Life Insurance SE,Vilnius ERGO SIGORTA A.S.,Istanbul ERGO Versicherung Aktiengesellschaft,Vienna Sopockie Towarzystwo Ubezpieczen Ergo Hestia Spolka Akcyjna,Sopot Sopockie Towarzyst

226、wo Ubezpieczen na Zycie Ergo Hestia Spolka Akcyjna,Sopot1 A detailed list of shareholdings can be found on page 168 ff.in the notes to the consolidated financial statements.Southeast Asia and China.The management and key operational functions of our reinsurance activities in North America were reloc

227、ated to Minnesota in order to be even closer to clients and sales partners for future business development.We continued to grow our reinsurance business in the Middle East and Gulf region.In the year under review,we laid the organisational groundwork for future growth through capital-relief reinsura

228、nce solutions in Europe and Latin America.By increasing our stake in Apollo Munich Health Insurance in India by 23.3%to 48.7%,we have bolstered our opportunities to participate in the continuing dynamic growth within primary insurance.Despite the difficult economic environment,DKV Seguros in Spain c

229、onfirmed its market-leading position.As a provider of funded health insurance,DKV Belgium did not escape the impact of the low-interest-rate environment,but it is consistently developing its offering further in favour of products that are not dependent on interest rates.Munich HealthSince 2008,Munic

230、h Re had pooled its health business in the Munich Health field of business.A wide spectrum of service providers and risk carriers in primary insurance and reinsurance worldwide(though not in Germany)had attended to customers in services and the in surance sector since then.Despite a few individual s

231、uccess stories,the original growth and revenue targets for the Munich Health field of business had not been realised overall.We therefore decided to disband this field of business with effect from 1 February 2017.The reinsur ance part of Munich Health was merged with the Life Division,and the primar

232、y insurance part was transferred to ERGO International.The reorganisation will also release cost synergies.In the 2016 financial year,Munich Health had been working on further business expansion in the Asia-Pacific region via service-oriented reinsurance solutions focusing on Combined management rep

233、ortGroup28Munich Re Group Annual Report 20161 A detailed list of shareholdings can be found on page 168 ff.in the notes to the consolidated financial statements.Munich Health at a glance1 Selected companies fully allocated to Munich HealthApollo Munich Health Insurance Company Ltd.,HyderabadDaman Na

234、tional Health Insurance Company,Abu DhabiDaman Health Insurance Qatar LLC,Doha,QatarDKV Belgium S.A.,BrusselsDKV Seguros y Reaseguros,Sociedad Annima Espaola,SaragossaGlobality S.A.,LuxembourgMarina Salud S.A.,AlicanteMunich Re Stop Loss,Inc.,Wilmington,DelawareStorebrand Helse ASA,Lysaker Selected

235、companies that operate in more than one segment and are allocated proportionately to Munich HealthGreat Lakes Insurance SE,MunichMnchener Rckversicherungs-Gesellschaft AG,Munich Munich Re of Malta p.l.c.,Ta XbiexMunich Reinsurance America,Inc.,Wilmington,Delaware 29Combined management reportGroupMun

236、ich Re Group Annual Report 2016Remuneration reportRemuneration system for the Board of ManagementThe remuneration system for the Board of Management focuses strongly on long-term objectives,and thus creates a pronounced incentive for sustainable corporate development.It complies with the recommendat

237、ions of the German Corporate Governance Code,applicable since 5 May 2015,the provisions of the German Remuneration Regulation for Insurance Companies(VersVergV)of 18 April 2016,and Article 275 of the Commission Delegated Regulation(EU)2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of

238、 the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance(Solvency II).The full Supervisory Board decides on the remuneration system for the Board of Management,and reviews it regularly.The Personnel Committee of the Supervisory Board,compr

239、ising the Chairman of the Supervisory Board,one shareholder representative and one employee representative,prepares the resolutions for the full Supervisory Board.Structure of the remuneration system for the Board of Management ComponentShare1Assessment basis/parametersCorridorPrecondition for payme

240、ntPaymentBasic remunerationplus remuneration in kind/fringe benefits 30%Function,Responsibility,Length of serviceon BoardFixedContractual stipulationsMonthlyVariable remuneration30%annual performance(for 100%performance evaluation/achievement of objectives)70%Corporate performance Result contributio

241、n of organisational unit(s)Personal performanceGroup objectiveBusiness-field objectivesDivisional objectivesPersonal objectivesOverall performance0200%(fully achieved=100%)Achievement of annual objectivesIn the second year,on con dition that 50%of the net amount paid out is invested by the Board mem

242、ber in Munich Re shares that must be held for at least a four-year period70%multi-year performance(for 100%performance evaluation/achievement of objectives)Objectives for the fields of business Reinsurance ERGO Munich Health2Personal objectivesOverall performance0200%(fully achieved=100%)Achievement

243、 of three-year objectivesIn the fourth year,on con dition that 25%of the net amount paid out is invested by the Board member in shares that must be held for at least a two-year periodPensionDefined contribution plan Target overall direct remuneration3Pension contribution Retirement Insured event Pre

244、mature termination1 For the variable remuneration,the share shown presupposes 100%performance evaluation/achievement of objectives.2 The field of business/division Munich Health was disbanded as at 1 February 2017,so that no objectives have been set with effect from 2017.3 Target overall direct remu

245、neration comprises basic remuneration plus variable remuneration based on 100%performance evaluation/achievement of objectives.Combined management reportGroup30Munich Re Group Annual Report 2016these periods.The corridor for the achievement of the individual objectives and for the overall annual and

246、 multi-year performance is 0200%.Payouts are made at the end of the periods under consideration.With a view to promoting a management approach that takes due account of the Companys long-term interests,the members of the Board of Management are obliged to invest a fixed part of the paid-out variable

247、 remuneration in Munich Reinsurance Company shares.Annual objectives,multi-year objectives,overall performance evaluation and investment in shares together form a well-balanced and economic(i.e.strongly risk-based)incentive system,with great importance being attached to ensuring that the targets set

248、 for the members of the Board of Management do not have undesirable effects.No guaranteed variable salary components are granted.Variable remuneration based on annual performanceFirstly,annual targets for the variable remuneration component geared to annual performance are set on the basis of the co

249、nsolidated result of Munich Re(Group),the results from the reinsurance and ERGO fields of business,divisional results and personal performance.In addition,the Supervisory Board assesses overall performance particularly performance not taken into account in the objectives of the Board of Management a

250、s a whole and the individual Board members,and it also takes into account developments during the appraisal period that are beyond the influence of the Board.Full achievement of the annual objectives(100%)allows for payment of 30%of the overall target amount for variable remuneration.The variable re

251、muneration for annual performance is determined on the basis of evaluation by the full Supervisory Board and then paid out in the year after the one-year assessment period.Of the net payout amount,50%must be invested in Munich Reinsurance Company shares that must be held for at least a four-year per

252、iod.Details of the assessment bases for the annual performance can be seen in the following table:Fixed componentsThe fixed components of remuneration comprise basic remuneration,plus remuneration in kind and fringe benefits.Basic remunerationThe basic remuneration comprises a fixed cash compensatio

253、n for the financial year,paid out as a monthly salary.Remuneration in kind/fringe benefitsRemuneration in kind and fringe benefits include in particular company cars,insurance premiums and health screening examinations,and are reviewed against market practice at regular intervals.Income tax on the b

254、enefits in question is paid individually for each member of the Board of Management,with the Company bearing the amount due.Remuneration in kind and fringe benefits are disclosed in the Annual Report using expenditure as the basis of valuation.Variable remunerationThe variable remuneration component

255、 is geared to the overall performance of the Group and defined divisional units,and to the personal performance of the individual members of the Board of Management.The amount depends on the extent to which the annually set objectives for annual and multi-year performance are met,and how the compone

256、nt“evaluation of overall performance”is assessed.Processes have been laid down for specifying respective objectives and assessing their achievement.These processes require review by the external auditor,who checks the criteria for measuring the envisaged financial objectives and whether their achiev

257、ement has been assessed in accordance with the guidelines established by the Company.The outcome is notified to the Super visory Board.Achievement of objectives and overall performance is measured at the end of the one-year and three-year periods in question,there being no adjustment of targets duri

258、ng 31Combined management reportGroupMunich Re Group Annual Report 2016The variable remuneration for the multi-year performance is determined on the basis of evaluation by the full Supervisory Board and then paid out in the year after the three-year assessment period.Of the net payout amount,25%must

259、be invested in Munich Reinsurance Company shares that must be held for at least a two-year period.Details of the assessment bases for the multi-year performance can be seen in the following table:Variable remuneration based on multi-year performanceFor the multi-year performance remuneration compone

260、nt,three-year targets based on the financial results of the reinsurance,ERGO and Munich Health fields of business and on individual performance are fixed every year.The Supervisory Board also assesses the overall performance of the whole Board of Management and the individual Board members.This allo

261、ws for a response to developments during the three-year appraisal period that are beyond the influence of Board members,and which can also be taken into account along with performance not included in the agreement of objectives.Full achievement of the multi-year objectives(100%)allows for payment of

262、 70%of the overall target amount for variable remuneration.1 The objectives are weighted individually according to the responsibilities of the individual Board members.2 Further information on RORAC is provided on page 47.3 Further information on economic earnings is provided on page 46.Variable rem

263、uneration based on annual performance Category of objective Share1 Assessment basis ParametersCollective contribution 25%60%to corporate success Group objective Derived from key performance indicators Return on risk-adjusted capital,RORAC2 in external reporting and other important portfolio and perf

264、ormance dataBusiness-field objectives Reinsurance Value-based economic Components of performance indicators:economic earnings3:Property-casualty reinsurance Value added Life reinsurance Value added by new business Change in the value of in-force business ERGO Value-based economic Economic earnings3

265、performance indicator Individual contribution 20%55%to corporate success Divisional objectives Value-based economic Components of performance indicators:economic earnings3:Property-casualty reinsurance Value added and Munich Health Life reinsurance Value added by new business Change in the value of

266、in-force businessPersonal objectives Personal objectives per Board member Special focal points such as Pricing and cycle management Client management Innovation initiativesOverall performance evaluation 20%Overall performance of individual Assessment by Supervisory Board taking Board members and of

267、the Board of into account Section 87 of the Stock Management as a whole Corporation Act(AktG)and the German Corporate Governance CodeCombined management reportGroup32Munich Re Group Annual Report 2016Severance cap and change of controlMembers of the Board of Management appointed before 1 January 201

268、7 have no contractual right to severance payments.If the Board members activities on the Board are terminated prematurely without good cause,payments due may not exceed the equivalent of two years total remuneration(three years total remuneration in the event of acquisition of a controlling interest

269、 or change of control within the meaning of Section 29(2)of the Securities Acquisition and Takeover Act WpG)and may not cover more than the remaining period of the employment contract.If the employment contract is terminated for good cause on grounds that are within the Board members control,no paym

270、ents are made to the Board member.The calculation is based on the overall remuneration for the past financial year and,if necessary,on the probable overall remuneration for the current financial year.Members of the Board of Management appointed for the first time after 1 January 2017 whose contracts

271、 are terminated by the Company without good cause will have a contractual right to a severance payment.Such payments may not exceed the equivalent of two years total remuneration,and are restricted by the remaining term of the Board members contract.Total annual remuneration is calculated on the bas

272、is of fixed annual remuneration and the variable remuneration paid out for the prior full financial year before the contract was terminated;remuneration in kind,other ancillary benefits and contributions to occupational retirement schemes are Weighting of remuneration componentsIn the case of 100%ac

273、hievement of objectives,the weightings of the individual components in terms of total remuneration were as follows:basic remuneration 30%,variable remuneration 70%,of which 30%was based on annual performance and 70%on multi-year performance.Continued payment of remuneration in the case of incapacity

274、 to workIn the case of temporary incapacity to work due to illness or for another cause beyond the Board members control,the remuneration is paid until the end of the contract of employment.The Company may terminate the contract prematurely if Board members are incapacitated for a period of longer t

275、han 12 months and it is probable that they will be permanently unable to fully perform the duties conferred on them(permanent incapacity to work).In this event,the Board member will receive a disability pension.Other remunerationStock option planNo stock option plans or other incentive systems are i

276、n place for the Board of Management.Remuneration for other board membershipsIn the case of seats held on other boards,remuneration for board memberships must be paid over to the Company or is deducted in the course of regular remuneration computation.Exempted from this is remuneration for membership

277、s explicitly classified by the Supervisory Board as private.Variable remuneration based on multi-year performance Category of objective Share1 Assessment basis ParametersCollective contribution 0%60%to corporate success Business-field objectives (three-year average)Reinsurance Value-based economic C

278、omponents of economic earnings2:performance indicators:Value added Property-casualty reinsurance Value added by new business Life reinsurance Change in the value of in-force business ERGO3 Value-based economic Economic earnings2 performance indicator Munich Health3 Value-based economic Component of

279、economic earnings2:performance indicator Value addedIndividual contribution 20%80%to corporate success Personal objectives Personal objectives Special focal points such as(three-year period)per Board member Strategic goals Client management Innovation initiatives Digitalisation initiativesOverall pe

280、rformance evaluation 20%Overall performance of individual Assessment by Supervisory Board taking Board members and the Board into account Section 87 of the Stock of Management as a whole Corporation Act(AktG)and the German Corporate Governance Code(incl.corporate responsibility)1 The objectives are

281、weighted individually according to the responsibilities of the individual Board members.2 Further information on economic earnings is provided on page 46.3 The business-field objective for Munich Health and for ERGO is an“individual contribution to corporate success”for the Board member responsible.

282、33Combined management reportGroupMunich Re Group Annual Report 2016Board members appointed for the first time as from 1 April 2012 are entitled to an occupational pension on retiring from active service with the Company after reaching the age of 62 or,at the latest,at the end of the calendar year in

283、 which they turn 67.Benefit:In the case of defined contribution plans:Annuity based on the policy reserve or payment of the policy reserve as a lump sum.In the case of a combination between defined benefit plans and defined contribution plans:Vested pension from the defined benefit plan and annuity

284、from the policy reserve under the defined contribution plan or payment of a lump sum.Disability pensionDisability in this respect means that the member of the Board of Management is likely to be unable,or has already been unable,to exercise his or her position in the manner foreseen without health i

285、mpairment for six months without interruption,as a result of illness,injury,or emaciation beyond what is normal for his or her age.The entitlement to a disability pension does not arise until expiry of remuneration payment obligations after a mutual agreement to terminate the employment contract,as

286、a result of non-extension or revocation of their appointment to the Board or where the contract of employment has been terminated by the Company due to permanent incapacity.Benefit:In the case of defined contribution plans:80%of the insured occupational pension up to the age of 59 or 61,with subsequ

287、ent occupational pension.In the case of a combination between defined benefit plans and defined contribution plans:Vested pension from the defined benefit plan and 80%of the insured occupational pension benefit up to age 59,with subsequent occupational pension based on the defined contribution plan.

288、Reduced occupational pension on early retirementBoard members appointed before 1 January 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 havin

289、g given cause for this through a gross violation of their duties,or at their own request.The precondition is that 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

290、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 pension benefit is claimed.In the case of a combination between defined benefit plans and defined contributi

291、on plans:Entitlement of between 30%and 60%of pensionable basic remuneration,reduced by 2%for each year or part thereof short of the Board members 65th birthday;the Company not taken into account.Payments received by a Board member during a period of notice and after termination of the appointment ar

292、e offset against any severance payment.There will be no right to severance payments if the Board members contract is terminated by the Company for good cause.PensionsUp to and including 2008,the members of the Board of Management were members of a defined benefit plan,providing for payment of a fixe

293、d pension amount.As of 2009,newly appointed members of the Board have become members of a defined contribution plan.For this plan,the Company provides a pension contribution for each calendar year(contribution year)during the term of the employment contract.It uniformly amounts to 25.5%of the target

294、 overall direct remuneration(=basic remuneration+variable remuneration on the basis of 100%achievement of objectives).The pension contribution is paid over to an external pension insurer.The insurance benefits that result from the contribution payments constitute the Companys pension commitment to t

295、he Board member.Board members appointed before 2009 were transferred to the new system.They kept their pension entitlement from the previous defined benefit plan(fixed amount in euros)existing at the date of transfer on 31 December 2008,which was maintained as a vested pension.For their service year

296、s as of 1 January 2009,they receive an incremental pension benefit based on the defined contribution plan.The Supervisory Board determines the relevant target pension level for pension commitments from defined benefit plans and defined contribution plans also considering length of service on the Boa

297、rd and takes account of the resultant annual and long-term cost for the Company.The members of the Board of Management are also members of the Munich Re pension scheme,which is a defined contribution plan.Benefits on termination of employmentBoard members appointed before 2006 and entitled to an occ

298、upational pension,disability pension,reduced occupational pension or improved vested benefits continue to receive their previous monthly basic remuneration for a period of six months after retiring or leaving the Company.Occupational pensionBoard members appointed for the first time before 1 April 2

299、012 are entitled to an occupational pension on retiring from active service with the Company after reaching the age of 60 or,at the latest,at the end of the calendar year in which they turn 65.Combined management reportGroup34Munich Re Group Annual Report 2016Total remuneration of the Board of Manag

300、ementThe level of the target overall direct remuneration for the individual members of the Board of Management is set by the full Supervisory Board,acting on recommendations from the Supervisory Boards Personnel Committee.Criteria for the appropriateness of compensation are the respective Board memb

301、ers duties,the Board members personal performance,the performance of the Board as a whole,and the financial situation,performance and future prospects of Munich Re.Other criteria are the relevant comparative benchmarks for Board remuneration and the prevailing remuneration structure at Munich Reinsu

302、rance Company.The Supervisory Board takes account of the level of Board salaries in relation to the level of salaries paid to senior managers and to general staff members over a period of time,and also determines how senior managers and general staff(pay-scale and non-pay-scale employees)are to be c

303、lassified for the purpose of this comparison.The consideration of what level of remuneration is appropriate also takes into account data from peer-group(DAX 30)companies.New Board members are placed at a level which allows sufficient potential for development of the remuneration in the first three y

304、ears.Board of management remuneration is disclosed under two different sets of rules,namely German Accounting Standard No.17(DRS 17,revised 2010)and the German Corporate Governance Code.There are therefore deviations in individual remuneration components and total remuneration.Board of management re

305、muneration under DRS 17Under DRS 17,remuneration for annual performance 2016 is shown as the provisions set aside for that purpose taking into account the relevant additional/reduced expenditure for the previous year,since the performance on which the remuneration is based has been completed as at t

306、he balance sheet date and the requisite Board resolution is already foreseeable.Under DRS 17,remuneration for multi-year performance 20132015 is recognised in the year of payment,i.e.in 2016.Fixed and variable remuneration componentsThe remuneration received by the members of Munich Reinsurance Comp

307、anys Board of Management for fulfilling their duties in respect of the parent company and its subsidiaries is shown in the following table.assumes payment of the difference between the monthly occupational pension and the monthly incremental pension from the external insurance.Members of the Board o

308、f Management appointed for the first time after 1 January 2017 do not have any entitlement to a reduced occupational pension on early retirement.Vested benefits for occupational pension,disability pension and surviving dependantsVested benefits are paid upon the Board member reaching the age of 60 o

309、r 62,in the case of disability,or in the event of the Board members death.Vested benefits under the Employers Retirement Benefits Act(BetrAVG):Board members have vested benefits under the Employers Retirement Benefits Act if they leave the Company before reaching the age of 60 or 62 and the pension

310、commitment has existed for at least five years previously.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.In the case of a combination between defined benefit plans and defined c

311、ontribution plans:The entitlement under the vested pension is a proportion of the vested pension based on the ratio of actual service with the Company to the period the Board member would have worked for the Company altogether up to the fixed retirement age(m/n-tel process,Section 2(1)of the Employe

312、rs Retirement Benefits Act).The entitlement from the incremental pension comprises the pension benefits fully financed under the insurance contract up to the occurrence of the insured event based on the pension contributions made up to the date of leaving the Company(Section 2(5a)of the Employers Re

313、tirement Benefits Act).This entitlement is paid out as an annuity or a lump sum.Provision for surviving dependantsIn the event of the death of a Board member during active service,the surviving dependants receive the previous monthly basic remuneration for a period of six months if the deceased was

314、appointed to the Board of Management before 2006.In the case of Board members appointed for the first time as from 2006,the previous monthly basic remuneration is paid to the beneficiaries for a period of three months.If the Board members death occurs after retirement,the surviving dependants receiv

315、e the previous monthly occupational pension for a period of three months,provided the marriage/registration of the civil partnership took place and/or the child was born before the Board member started drawing the occupational pension.Surviving spouses and registered civil partners normally receive

316、a pension amounting to 60%of the defined benefit or insured occupational pension;half orphans receive 20%and complete orphans 40%.The total amount may not exceed the occupational pension of the Board member.If the Board members occupational pension was reduced owing to early retirement,benefits for

317、surviving dependants are based on the reduced occupational pension.35Combined management reportGroupMunich Re Group Annual Report 20161 At the time of preparation of this report,no Supervisory Board resolution had yet been passed on the amounts to be paid for the 2016 annual performance.The amounts

318、shown for annual performance remuneration are based on estimates,i.e.the relevant provisions and the additional/reduced expenditure for 2015.For the 2015 annual performance,a total of 192,471 less was paid out than had been reserved in the financial year 2015.The additional/reduced expenditure break

319、s down as follows:von Bomhard 17,564,Albo 22,420,Arnoldussen 70,014,Blunck 54,474,Hpke 22,182,Jeworrek 23,021,Rie 17,214,Rder 37,674,Schneider 14,860,Wenning 42,588.This results in the following actual bonus payments for 2015:von Bomhard 972,930,Albo 412,913,Arnoldussen 411,600,Blunck 403,200,Hpke 2

320、83,238,Jeworrek 694,260,Rie 159,274,Rder 483,000,Schneider 675,990,Wenning 546,000.The amounts shown for the annual performance 2015 comprise the respective provision for 2015 and the relevant additional/reduced expenditure for 2014.2 The amounts paid out in 2016 were for multi-year performance 2013

321、2015,those paid out in 2015 were for 2012-2014.3 Remuneration in kind/fringe benefits for 2016 including anniversary payments.4 The compensation components that Markus Rie received for his work at ERGO Group AG are included in the remuneration.Remuneration in kind/fringe benefits for 2016 including

322、expenditure for security.Other:compensation,payable in four equal instalments,for the forfeited variable remuneration from the previous employer.Remuneration of individual Board members as per DRS 17(revised 2010)(in accordance with Section 285 sentence 1(9a)sentences 58 of the German Commercial Cod

323、e(HGB)and Section 314(1)(6a)sentences 58 of the German Commercial Code)Remuner-Basic ation in Annual Multi-year Financial remuner-kind/fringe perform-perform-Name year ation benefits ance1 ance2 Other Total Nikolaus von Bomhard 2016 1,260,000 35,783 840,887 1,901,200 4,037,870 2015 1,230,000 33,564

324、1,035,093 2,214,800 4,513,457Giuseppina Albo 2016 555,000 21,959 364,293 941,252 2015 487,500 96,010 439,538 1,023,048Ludger Arnoldussen3 2016 615,000 90,384 325,572 903,070 1,934,026 2015 600,000 38,717 461,160 1,163,750 2,263,627Thomas Blunck 2016 615,000 31,700 402,459 949,620 1,998,779 2015 600,

325、000 33,996 432,390 1,173,060 2,239,446Doris Hpke 2016 555,000 33,356 519,462 1,107,818 2015 487,500 29,884 312,925 830,309Torsten Jeworrek 2016 885,000 37,801 601,187 1,410,465 2,934,453 2015 870,000 182,311 737,803 1,745,625 3,535,739Markus Rie4(joined 16 September 2015)2016 976,250 115,717 567,351

326、 1,500,000 3,159,318thereof for Munich Reinsurance Company 337,500 39,677 229,744 1,500,000 2,106,921 2015 280,365 7,430 176,488 750,000 1,214,283thereof for Munich Reinsurance Company 94,063 801 72,691 750,000 917,555Peter Rder 2016 615,000 35,034 389,554 921,690 1,961,278 2015 600,000 34,932 543,6

327、90 1,173,060 2,351,682Jrg Schneider 2016 885,000 37,011 593,055 1,354,605 2,869,671 2015 870,000 34,627 723,614 1,592,010 3,220,251Joachim Wenning3 2016 615,000 139,039 511,489 903,070 2,168,598 2015 600,000 33,699 523,950 1,093,680 2,251,329Total 2016 7,576,250 577,784 5,115,309 8,343,720 1,500,000

328、 23,113,063 2015 6,625,365 525,170 5,386,651 10,155,985 750,000 23,443,171Combined management reportGroup36Munich Re Group Annual Report 2016The following table shows the amounts payable for the variable remuneration.1 At the time of preparation of this report,no Supervisory Board resolution had yet

329、 been passed on the amounts to be paid for 2016.The amounts shown for annual performance remuneration are based on estimates,i.e.the relevant provisions and the additional/reduced expenditure for 2015 posted in the table on page 35.2 The remuneration set for multi-year performance for 2016 is payabl

330、e in 2019,that for 2017 in 2020.3 The information on the assessment bases and parameters on page 31 f.for the amounts set for 2016 also applies to the amounts set for 2017.4 The amounts set for 2017 are granted pro rata temporis for a period of four months.5 The compensation components that Markus R

331、ie received for his work at ERGO Group AG are included in the remuneration.Amounts payable for the variable remuneration of the individual Board members in the event of 100%performance evaluation as per DRS 17(revised 2010),corridor 0200%Total Annual Multi-year amountsName performance1,3 performance

332、2,3 payable Set in for Nikolaus von Bomhard4 2016 2017 294,000 686,000 980,000 2015 2016 882,000 2,058,000 2,940,000Giuseppina Albo 2016 2017 430,500 1,004,500 1,435,000 2015 2016 388,500 906,500 1,295,000Ludger Arnoldussen 2016 2017 430,500 1,004,500 1,435,000 2015 2016 430,500 1,004,500 1,435,000T

333、homas Blunck 2016 2017 430,500 1,004,500 1,435,000 2015 2016 430,500 1,004,500 1,435,000Doris Hpke 2016 2017 430,500 1,004,500 1,435,000 2015 2016 388,500 906,500 1,295,000Torsten Jeworrek 2016 2017 619,500 1,445,500 2,065,000 2015 2016 619,500 1,445,500 2,065,000Markus Rie5(joined 16 September 2015)2016 2017 592,125 1,381,625 1,973,750thereof for Munich Reinsurance Company 236,250 551,250 787,500