Munich Re2007年年度報告.pdf

1、Key fi gures(IFRS)Multi-year overview and quarterly fi gures Munich Re in facts and fi guresImportant dates 2008/2009200817 April 2008Annual General Meeting18 April 2008Dividend payment8 May 2008Interim report as at 31 March 20086 August 2008Interim report as at 30 June 20086 August 2008Half-year pr

2、ess conference7 November 2008Interim report as at 30 September 2008200926 February 2009Balance sheet press conference for 2008 fi nancial statements(preliminary fi gures)22 April 2009Annual General Meeting23 April 2009Dividend payment6 May 2009Interim report as at 31 March 20094 August 2009Interim r

3、eport as at 30 June 20094 August 2009Half-year press conference5 November 2009Interim report as at 30 September 2009 2008Mnchener Rckversicherungs-GesellschaftKniginstrasse 10780802 MnchenGResponsible for contentGroup AccountingCorporate CommunicationsEditorial deadline:26 February 2008Concept and d

4、esignANZINGER|WSCHNER|RASP Agentur fr Kommunikation,MunichPicture creditsMierswa-Kluska,Munich,cover,pp.4,6 f.,10 f.,14 f.,18 f.,22 f.,back coverOliver Soulas,Munich,pp.8,13,21,25Frank Bauer,Munich,pp.2,28 f.,30Claudia Kempf,Wuppertal,p.28 f.Travelpix Ltd/Getty,p.12Pueschner/laif,p.20Hoffmann/Pictur

5、e Press/picture alliance,p.25Munich Reinsurance Company,pp.9,17Printed byDruckerei Fritz KriechbaumerWettersteinstr.1282024 TaufkirchenGermanyThe offi cial German original of this report is also available from the Company.In addition,you can fi nd our annual reports and interim reports,along with fu

6、rther information about Munich Re,on the internet at .Service for investors and analystsIf you have general questions on Munich Re shares,please use our shareholder hotline:Tel.:(0 18 02)22 62 10(6 cents per call from the Deutsche Telekom network)E-mail:If you are an institutional investor or analys

7、t,please contact our investor relations team:Sascha BibertTel.:+49(89)38 91-39 00Fax:+49(89)38 91-98 88E-mail:Service for mediaJournalists receive information from our Press Division:Dr.jur.Christian LawrenceTel.:+49(89)38 91-54 00Fax:+49(89)38 91-35 99E-mail: All greenhouse gas emissions caused by

8、production of this report are offset through high-quality emission-reduction projects.Munich Re GroupAnnual Report 2007 2008Mnchener Rckversicherungs-GesellschaftKniginstrasse 10780802 MnchenGermanyOrder number 302-05612Mnchener Rck Munich Re GroupMunich Re Group Annual Report 2007Premium growth2007

9、2006200520042003Total 0.5%Total 2.0%Total 0.3%Total 5.8%Total 1.0%Reinsurance Primary insurance 0.6%0.6%2.6%0.2%9.7%0.3%3.2%3.1%6.3%4.7%1 Adjusted pursuant to IAS 8.2 Including amounts attributable to minority interests and policyholders.3 Before elimination of intra-Group transactions across segmen

10、ts.4 Before elimination of intra-Group transactions across segments.5 Adjusted pursuant to IAS 8.6 Adjusted pursuant to IAS 8.Reinsurance3 2007 2006 2005 2004 2003Gross premiums written bn 21.5 22.2 22.3 22.4 24.8Investments bn 81.9 85.0 87.0 81.2 80.4Net technical provisions bn 55.4 59.6 63.4 58.2

11、56.7Reserve ratio property-casualty%272.0 280.9 295.8 243.8 205.0Large and very large losses(net)m 1,340 854 3,293 1,201 1,054Natural catastrophe losses m 673 177 2,629 713 288Combined ratio property-casualty%96.4 92.6 111.7 98.9 96.5Primary insurance4 2007 2006 2005 2004 2003Gross premiums written

12、bn 17.3 16.7 17.6 17.5 17.6Investments bn 109.3 107.4 105.9 115.0 108.3Net technical provisions bn 97.0 94.35 90.85 96.1 91.0Reserve ratio property-casualty%121.4 124.9 113.1 116.8 114.5Combined ratio property-casualty%93.4 90.8 93.1 93.0 96.4Our shares 2007 2006 2005 2004 2003Earnings per share 17.

13、90 15.056 11.74 8.01 2.25Dividend per share 5.50 4.50 3.10 2.00 1.25Amount distributed m 1,124 988 707 457 286Share price at 31 December 132.94 130.42 114.38 90.45 96.12Munich Res market capitalisation at 31 December bn 29.0 29.9 26.3 20.8 22.1Munich Re Group 2007 20061 20051 2004 2003Gross premiums

14、 written bn 37.3 37.4 38.2 38.1 40.4Operating result m 5,078 5,477 4,143 3,025 1,284Taxes on income m 808 1,648 1,014 712 1,752Consolidated result m 3,937 3,519 2,751 1,887 468Attributable to minority interests m 83 94 72 54 34Investments bn 176.2 176.9 177.2 178.1 171.9Return on equity%15.3 14.1 12

15、.5 9.5 3.0Equity bn 25.5 26.3 24.3 20.5 19.3Valuation reserves not recognised in balance sheet2 bn 0.6 1.9 2.6 3.2 1.8Net technical provisions bn 152.4 153.9 154.0 154.3 147.5Staff at 31 December 38,634 37,210 37,953 40,962 41,431 Key fi gures(IFRS)Multi-year overview and quarterly fi gures Munich R

16、e in facts and fi guresImportant dates 2008/2009200817 April 2008Annual General Meeting18 April 2008Dividend payment8 May 2008Interim report as at 31 March 20086 August 2008Interim report as at 30 June 20086 August 2008Half-year press conference7 November 2008Interim report as at 30 September 200820

17、0926 February 2009Balance sheet press conference for 2008 fi nancial statements(preliminary fi gures)22 April 2009Annual General Meeting23 April 2009Dividend payment6 May 2009Interim report as at 31 March 20094 August 2009Interim report as at 30 June 20094 August 2009Half-year press conference5 Nove

18、mber 2009Interim report as at 30 September 2009 2008Mnchener Rckversicherungs-GesellschaftKniginstrasse 10780802 MnchenGResponsible for contentGroup AccountingCorporate CommunicationsEditorial deadline:26 February 2008Concept and designANZINGER|WSCHNER|RASP Agentur fr Kommunikation,MunichPicture cre

19、ditsMierswa-Kluska,Munich,cover,pp.4,6 f.,10 f.,14 f.,18 f.,22 f.,back coverOliver Soulas,Munich,pp.8,13,21,25Frank Bauer,Munich,pp.2,28 f.,30Claudia Kempf,Wuppertal,p.28 f.Travelpix Ltd/Getty,p.12Pueschner/laif,p.20Hoffmann/Picture Press/picture alliance,p.25Munich Reinsurance Company,pp.9,17Printe

20、d byDruckerei Fritz KriechbaumerWettersteinstr.1282024 TaufkirchenGermanyThe offi cial German original of this report is also available from the Company.In addition,you can fi nd our annual reports and interim reports,along with further information about Munich Re,on the internet at .Service for inv

21、estors and analystsIf you have general questions on Munich Re shares,please use our shareholder hotline:Tel.:(0 18 02)22 62 10(6 cents per call from the Deutsche Telekom network)E-mail:If you are an institutional investor or analyst,please contact our investor relations team:Sascha BibertTel.:+49(89

22、)38 91-39 00Fax:+49(89)38 91-98 88E-mail:Service for mediaJournalists receive information from our Press Division:Dr.jur.Christian LawrenceTel.:+49(89)38 91-54 00Fax:+49(89)38 91-35 99E-mail: All greenhouse gas emissions caused by production of this report are offset through high-quality emission-re

23、duction projects.Munich Re GroupAnnual Report 2007 2008Mnchener Rckversicherungs-GesellschaftKniginstrasse 10780802 MnchenGermanyOrder number 302-05612Mnchener Rck Munich Re GroupMunich Re Group Annual Report 2007Premium growth20072006200520042003Total 0.5%Total 2.0%Total 0.3%Total 5.8%Total 1.0%Rei

24、nsurance Primary insurance 0.6%0.6%2.6%0.2%9.7%0.3%3.2%3.1%6.3%4.7%1 Adjusted pursuant to IAS 8.2 Including amounts attributable to minority interests and policyholders.3 Before elimination of intra-Group transactions across segments.4 Before elimination of intra-Group transactions across segments.5

25、 Adjusted pursuant to IAS 8.6 Adjusted pursuant to IAS 8.Reinsurance3 2007 2006 2005 2004 2003Gross premiums written bn 21.5 22.2 22.3 22.4 24.8Investments bn 81.9 85.0 87.0 81.2 80.4Net technical provisions bn 55.4 59.6 63.4 58.2 56.7Reserve ratio property-casualty%272.0 280.9 295.8 243.8 205.0Larg

26、e and very large losses(net)m 1,340 854 3,293 1,201 1,054Natural catastrophe losses m 673 177 2,629 713 288Combined ratio property-casualty%96.4 92.6 111.7 98.9 96.5Primary insurance4 2007 2006 2005 2004 2003Gross premiums written bn 17.3 16.7 17.6 17.5 17.6Investments bn 109.3 107.4 105.9 115.0 108

27、.3Net technical provisions bn 97.0 94.35 90.85 96.1 91.0Reserve ratio property-casualty%121.4 124.9 113.1 116.8 114.5Combined ratio property-casualty%93.4 90.8 93.1 93.0 96.4Our shares 2007 2006 2005 2004 2003Earnings per share 17.90 15.056 11.74 8.01 2.25Dividend per share 5.50 4.50 3.10 2.00 1.25A

28、mount distributed m 1,124 988 707 457 286Share price at 31 December 132.94 130.42 114.38 90.45 96.12Munich Res market capitalisation at 31 December bn 29.0 29.9 26.3 20.8 22.1Munich Re Group 2007 20061 20051 2004 2003Gross premiums written bn 37.3 37.4 38.2 38.1 40.4Operating result m 5,078 5,477 4,

29、143 3,025 1,284Taxes on income m 808 1,648 1,014 712 1,752Consolidated result m 3,937 3,519 2,751 1,887 468Attributable to minority interests m 83 94 72 54 34Investments bn 176.2 176.9 177.2 178.1 171.9Return on equity%15.3 14.1 12.5 9.5 3.0Equity bn 25.5 26.3 24.3 20.5 19.3Valuation reserves not re

30、cognised in balance sheet2 bn 0.6 1.9 2.6 3.2 1.8Net technical provisions bn 152.4 153.9 154.0 154.3 147.5Staff at 31 December 38,634 37,210 37,953 40,962 41,431 DublinBristolLondonRotterdamDsseldorfCologneFrankfurtFrthMunsbachOstfi ldernBratislavaWarsawKievSopotVilniusRigaMoscowTallinnSt.Petersburg

31、PragueBudapestAgrate BrianzaIstanbulThessalonikiAthensAmsterdamHamburgCopenhagenStockholmOsloLisbonMadridParisNanterreBrusselsMunichViennaLausanneVeronaLuxembourgStrassenGenevaMilanBarcelonaFlorianaSaragossa Reinsurance Primary insuranceMunich Re Group locationsSo PauloCape TownJohannesburgRduitNair

32、obiAccraAucklandBrisbaneSingaporeTaipeiHong KongTokyoSeoulBeijingManamaKuala LumpurMumbaiKolkataPerthSydneyMelbourneBuenos AiresSantiago de ChileBogotMexico CityLos AngelesSan FranciscoSeattleDallasAtlantaKansas CityChicagoVancouverMontrealColumbusTorontoHamiltonWalthamBostonHartfordNew YorkPrinceto

33、nPhiladelphiaCaracasThe Munich Re GroupMunich Re GroupPrimary insuranceDeutsche KrankenversicherungERGO Insurance GroupEuropische ReiseversicherungGreat Lakes Reinsurance(UK)ERGO HestiaHamburg-MannheimerKarstadtQuelle VersicherungenERGO ?svireMunich American Reassurance CompanyMunich-American RiskPa

34、rtnersMercur AssistanceMunich Holdings of AustralasiaMunich ReMnchener Rck ItaliaMunich Reinsurance AmericaMunich Reinsurance Company of AfricaNew ReinsuranceCompanyERGO PrevidenzaMunich Reinsurance Company of CanadaTemple Insurance CompanyVictoriaMunich Re UnderwritingDeutscher Automobil SchutzOur

35、operations encompass all aspects of risk assumption in primary insurance and reinsurance.We are one of the worlds largest reinsurers,and one of the largest primary insurers in Germany.Reinsurance:We have been in the business of insuring insurers since 1880.Primary insurance:Our primary insurers offe

36、r security mainly for private clients and for small and medium-sized businesses.Our subsidiary MEAG manages our assets and offers investment products for private clients and institutional investors.ReinsuranceAsset managementMEAG MUNICH ERGO AssetManagementMulti-year overviewQuarterly fi gures1 Adju

37、sted pursuant to IAS 8.1 Adjusted pursuant to IAS 8.2 Finance costs shown under“other expenses”.1 Adjusted pursuant to IAS 8.31.12.2007 31.12.20061 31.12.20051 31.12.2004 31.12.2003Balance sheetInvestments m 176,154 176,872 177,171 178,132 171,881Equity m 25,458 26,320 24,298 20,492 19,298Net techni

38、cal provisions m 152,436 153,872 154,131 154,327 147,476Balance sheet total m 214,253 215,845 218,707 214,791 209,384SharesDividend per share 5.50 4.50 3.10 2.00 1.25Amount distributed m 1,124 988 707 457 286Share price 132.94 130.42 114.38 90.45 96.12Munich Res market capitalisation bn 29.0 29.9 26

39、.3 20.8 22.1OtherCombined ratio Reinsurance property-casualty%96.4 92.6 111.7 98.9 96.5Primary insurance property-casualty%93.4 90.8 93.1 93.0 96.4Number of staff 38,634 37,210 37,953 40,962 41,431 m 2007 20061 2005 2004 2003Gross premiums written 37,262 37,436 38,199 38,071 40,431Net earned premium

40、s 35,675 35,714 36,210 36,534 37,617Investment result 9,272 8,972 10,818 8,041 7,131Other income 2,376 1,784 1,465 1,116 1,211Total income 47,323 46,470 48,493 45,691 45,959Net expenses for claims and benefi ts 30,474 29,780 33,352 31,636 32,487Net operating expenses 8,878 8,834 9,165 8,847 8,997Oth

41、er expenses 2,882 2,375 1,826 1,839 2,504Total expenses 42,234 40,989 44,343 42,322 43,988Result before amortisation and impairment losses of goodwill 5,089 5,481 4,150 3,369 1,971Amortisation and impairment losses of goodwill 11 4 7 344 687Operating result 5,078 5,477 4,143 3,025 1,284Finance costs

42、 333 310 378 426 2Taxes on income 808 1,648 1,014 712 1,752Consolidated result 3,937 3,519 2,751 1,887 468Attributable to Munich Re equity holders 3,854 3,425 2,679 1,833 434Attributable to minority interests 83 94 72 54 34 2007 20061 2005 2004 2003Earnings per share 17.90 15.05 11.74 8.01 2.25 31.1

43、2.2007 30.9.2007 30.6.2007 31.3.20071Balance sheetInvestments m 176,154 179,356 178,937 179,274Equity m 25,458 24,857 25,330 26,341Net technical provisions m 152,436 155,739 155,651 155,475Balance sheet total m 214,253 217,245 218,945 218,395SharesShare price 132.94 134.77 136.19 126.61Munich Res ma

44、rket capitalisation bn 29.0 29.4 29.7 29.1OtherCombined ratio Reinsurance property-casualty%96.4 98.0 98.4 101.8Primary insurance property-casualty%93.4 92.9 93.3 102.1Number of staff 38,634 38,006 37,748 37,7541 Adjusted pursuant to IAS 8.m Total Q4 2007 Q3 2007 Q2 2007 Q1 20071Gross premiums writt

45、en 37,262 9,186 9,148 8,908 10,020 1.Earned premiums Gross 37,187 9,630 9,151 9,263 9,143 Ceded 1,512 378 383 402 349 Net 35,675 9,252 8,768 8,861 8,794 2.Investment result Investment income 15,071 3,776 3,625 3,685 3,985 Investment expenses 5,799 2,140 1,635 1,200 824 Total 9,272 1,636 1,990 2,485

46、3,161 3.Other income 2,376 804 553 607 412 Total income(13)47,323 11,692 11,311 11,953 12,367 4.Expenses for claims and benefi ts Gross 31,317 7,472 7,462 7,736 8,647 Ceded 843 269 180 168 226 Net 30,474 7,203 7,282 7,568 8,421 5.Operating expenses Gross 9,271 2,448 2,263 2,365 2,195 Ceded 393 66 10

47、7 142 78 Net 8,878 2,382 2,156 2,223 2,117 6.Other expenses 2,882 998 741 627 516 Total expenses(46)42,234 10,583 10,179 10,418 11,054 7.Result before impairment losses of goodwill 5,089 1,109 1,132 1,535 1,313 8.Impairment losses of goodwill 11 11 9.Operating result before tax 5,078 1,098 1,132 1,5

48、35 1,313 10.Finance costs 333 95 89 79 70 11.Taxes on income 808 414 173 298 269 12.Minority interests 13.Consolidated result 3,937 589 1,216 1,158 974 Attributable to Munich Re equity holders 3,854 560 1,196 1,140 958 Attributable to minority interests 83 29 20 18 161 Adjusted pursuant to IAS 8.Tot

49、al Q4 2007 Q3 2007 Q2 2007 Q1 20071Earnings per share 17.90 2.68 5.63 5.22 4.351 Adjusted pursuant to IAS 8.DublinBristolLondonRotterdamDsseldorfCologneFrankfurtFrthMunsbachOstfi ldernBratislavaWarsawKievSopotVilniusRigaMoscowTallinnSt.PetersburgPragueBudapestAgrate BrianzaIstanbulThessalonikiAthens

50、AmsterdamHamburgCopenhagenStockholmOsloLisbonMadridParisNanterreBrusselsMunichViennaLausanneVeronaLuxembourgStrassenGenevaMilanBarcelonaFlorianaSaragossa Reinsurance Primary insuranceMunich Re Group locationsSo PauloCape TownJohannesburgRduitNairobiAccraAucklandBrisbaneSingaporeTaipeiHong KongTokyoS

51、eoulBeijingManamaKuala LumpurMumbaiKolkataPerthSydneyMelbourneBuenos AiresSantiago de ChileBogotMexico CityLos AngelesSan FranciscoSeattleDallasAtlantaKansas CityChicagoVancouverMontrealColumbusTorontoHamiltonWalthamBostonHartfordNew YorkPrincetonPhiladelphiaCaracasThe Munich Re GroupMunich Re Group

52、Primary insuranceDeutsche KrankenversicherungERGO Insurance GroupEuropische ReiseversicherungGreat Lakes Reinsurance(UK)ERGO HestiaHamburg-MannheimerKarstadtQuelle VersicherungenERGO ?svireMunich American Reassurance CompanyMunich-American RiskPartnersMercur AssistanceMunich Holdings of AustralasiaM

53、unich ReMnchener Rck ItaliaMunich Reinsurance AmericaMunich Reinsurance Company of AfricaNew ReinsuranceCompanyERGO PrevidenzaMunich Reinsurance Company of CanadaTemple Insurance CompanyVictoriaMunich Re UnderwritingDeutscher Automobil SchutzOur operations encompass all aspects of risk assumption in

54、 primary insurance and reinsurance.We are one of the worlds largest reinsurers,and one of the largest primary insurers in Germany.Reinsurance:We have been in the business of insuring insurers since 1880.Primary insurance:Our primary insurers offer security mainly for private clients and for small an

55、d medium-sized businesses.Our subsidiary MEAG manages our assets and offers investment products for private clients and institutional investors.ReinsuranceAsset managementMEAG MUNICH ERGO AssetManagementMulti-year overviewQuarterly fi gures1 Adjusted pursuant to IAS 8.1 Adjusted pursuant to IAS 8.2

56、Finance costs shown under“other expenses”.1 Adjusted pursuant to IAS 8.31.12.2007 31.12.20061 31.12.20051 31.12.2004 31.12.2003Balance sheetInvestments m 176,154 176,872 177,171 178,132 171,881Equity m 25,458 26,320 24,298 20,492 19,298Net technical provisions m 152,436 153,872 154,131 154,327 147,4

57、76Balance sheet total m 214,253 215,845 218,707 214,791 209,384SharesDividend per share 5.50 4.50 3.10 2.00 1.25Amount distributed m 1,124 988 707 457 286Share price 132.94 130.42 114.38 90.45 96.12Munich Res market capitalisation bn 29.0 29.9 26.3 20.8 22.1OtherCombined ratio Reinsurance property-c

58、asualty%96.4 92.6 111.7 98.9 96.5Primary insurance property-casualty%93.4 90.8 93.1 93.0 96.4Number of staff 38,634 37,210 37,953 40,962 41,431 m 2007 20061 2005 2004 2003Gross premiums written 37,262 37,436 38,199 38,071 40,431Net earned premiums 35,675 35,714 36,210 36,534 37,617Investment result

59、9,272 8,972 10,818 8,041 7,131Other income 2,376 1,784 1,465 1,116 1,211Total income 47,323 46,470 48,493 45,691 45,959Net expenses for claims and benefi ts 30,474 29,780 33,352 31,636 32,487Net operating expenses 8,878 8,834 9,165 8,847 8,997Other expenses 2,882 2,375 1,826 1,839 2,504Total expense

60、s 42,234 40,989 44,343 42,322 43,988Result before amortisation and impairment losses of goodwill 5,089 5,481 4,150 3,369 1,971Amortisation and impairment losses of goodwill 11 4 7 344 687Operating result 5,078 5,477 4,143 3,025 1,284Finance costs 333 310 378 426 2Taxes on income 808 1,648 1,014 712

61、1,752Consolidated result 3,937 3,519 2,751 1,887 468Attributable to Munich Re equity holders 3,854 3,425 2,679 1,833 434Attributable to minority interests 83 94 72 54 34 2007 20061 2005 2004 2003Earnings per share 17.90 15.05 11.74 8.01 2.25 31.12.2007 30.9.2007 30.6.2007 31.3.20071Balance sheetInve

62、stments m 176,154 179,356 178,937 179,274Equity m 25,458 24,857 25,330 26,341Net technical provisions m 152,436 155,739 155,651 155,475Balance sheet total m 214,253 217,245 218,945 218,395SharesShare price 132.94 134.77 136.19 126.61Munich Res market capitalisation bn 29.0 29.4 29.7 29.1OtherCombine

63、d ratio Reinsurance property-casualty%96.4 98.0 98.4 101.8Primary insurance property-casualty%93.4 92.9 93.3 102.1Number of staff 38,634 38,006 37,748 37,7541 Adjusted pursuant to IAS 8.m Total Q4 2007 Q3 2007 Q2 2007 Q1 20071Gross premiums written 37,262 9,186 9,148 8,908 10,020 1.Earned premiums G

64、ross 37,187 9,630 9,151 9,263 9,143 Ceded 1,512 378 383 402 349 Net 35,675 9,252 8,768 8,861 8,794 2.Investment result Investment income 15,071 3,776 3,625 3,685 3,985 Investment expenses 5,799 2,140 1,635 1,200 824 Total 9,272 1,636 1,990 2,485 3,161 3.Other income 2,376 804 553 607 412 Total incom

65、e(13)47,323 11,692 11,311 11,953 12,367 4.Expenses for claims and benefi ts Gross 31,317 7,472 7,462 7,736 8,647 Ceded 843 269 180 168 226 Net 30,474 7,203 7,282 7,568 8,421 5.Operating expenses Gross 9,271 2,448 2,263 2,365 2,195 Ceded 393 66 107 142 78 Net 8,878 2,382 2,156 2,223 2,117 6.Other exp

66、enses 2,882 998 741 627 516 Total expenses(46)42,234 10,583 10,179 10,418 11,054 7.Result before impairment losses of goodwill 5,089 1,109 1,132 1,535 1,313 8.Impairment losses of goodwill 11 11 9.Operating result before tax 5,078 1,098 1,132 1,535 1,313 10.Finance costs 333 95 89 79 70 11.Taxes on

67、income 808 414 173 298 269 12.Minority interests 13.Consolidated result 3,937 589 1,216 1,158 974 Attributable to Munich Re equity holders 3,854 560 1,196 1,140 958 Attributable to minority interests 83 29 20 18 161 Adjusted pursuant to IAS 8.Total Q4 2007 Q3 2007 Q2 2007 Q1 20071Earnings per share

68、17.90 2.68 5.63 5.22 4.351 Adjusted pursuant to IAS 8.1Munich Re Group Annual Report 2007Letter to shareholders 2The joy of winning 5 Munich Re Group 2007 27Notable events in 2007 26Members of the Board of Management 28Report of the Supervisory Board 30Munich Re shares 34Strategy 40Management report

69、 43Munich Re Group 45Parameters 62Business performance 69Financial position 100Other success factors 111Corporate governance report 119Prospects 131Risk report 139Consolidated financial statements 157Notes to the consolidated financial statements 171Affiliated companies 249Declaration of the Board o

70、f Management 251Auditors report 252General information 253Glossary 254Important addresses 262Index of key terms 2641 Contentse_01_Inhalt_AktBrief_1-3 1e_01_Inhalt_AktBrief_1-3 107.03.2008 17:59:49 Uhr07.03.2008 17:59:49 Uhr2Munich Re Group Annual Report 2007Dear Shareholders,A year ago,in my outlook

71、 for the financial year 2007,I wrote that I would prefer to be able to report a“3”before the decimal point to you again one year hence.In fact,it is almost a“4”.The Munich Re Group has thus clearly been successful with its business model to an ever-growing extent over the past few years.With a profi

72、t of 3.9bn,we have not only easily surpassed our previous record(3.5bn for 2006),but have even outperformed our profit guidance for 2007,which we raised to 3.53.8bn in August 2007.As Munich Re shareholders,you benefit directly from this high profit:at the Annual General Meeting,we will propose that

73、the dividend per share be increased from last years level of 4.50 to 5.50,meaning that Munich Re will distribute 1.1bn(988m)to its shareholders.The resultant dividend yield puts us in the top group of DAX companies.But that is not all:we are keeping our equity lean and ensuring that capital we canno

74、t employ with sufficient profitability in our business is returned to our shareholders via share buy-backs.Over the past 14 months,we have repurchased shares with a total value of 3bn,and we intend to buy back more shares with a volume of at least 3bn by the end of 2010.In other words,for you as sha

75、reholders,the Munich Re Groups business strat-egy is paying off.And the Board of Management intends to see it stays that way.That,in particular,is one of the aims of our Changing Gear programme for profitable growth,which we launched in 2007.All our fields of business contributed substantially to la

76、st years record profit.And our very positive overall performance is not diminished by the fact that the profit for the year benefited from one-off income of around 400m due to the German tax reform and from an above-average investment result of 9.3bn.I attach particular importance in our operative b

77、usiness to the vision and the results being right,and I can say unreservedly that they are.In property-casualty reinsurance,we bettered our combined-ratio target of 97%,achieving a figure of 96.4%even though the costs for natural catastrophe losses increased compared with 2006 and returned to the av

78、erage level expected,i.e.5%of net earned premiums.In life and health reinsurance,we improved our result for the year substantially to 725m and grew the value added by our new business to 277m.The initiatives we have embarked on with Changing Gear are designed to ensure that our reinsurance business

79、continues to develop positively in a competitive environment.Our experience with the successful renewal of around two-thirds of our property-casualty reinsurance treaties at 1 January 2008 confirmed our ability to keep on course with our disciplined,profit-focused underwriting.Dr.Nikolaus von Bomhar

80、dChairman of Munich Res Board of ManagementLetter to shareholderse_01_Inhalt_AktBrief_1-3 2e_01_Inhalt_AktBrief_1-3 211.03.2008 9:04:47 Uhr11.03.2008 9:04:47 Uhr3Munich Re Group Annual Report 2007Letter to shareholdersIn primary insurance and here I am thinking especially of ERGO,which pro-vides aro

81、und 95%of our premium volume in this segment the direction and the results are also right.ERGOs excellent profit of 0.8bn is once again above-target,and has been accompanied by satisfying,profitable growth:the premium income written by the primary insurers was up 3.2%year on year to 17.3bn.Particula

82、rly in ERGOs international expansion,we are beginning to reap the rewards of our strategy based on purposefully utilising diversification effects and synergies between primary insurance and reinsurance.A word about the current turbulence on the global credit and financial markets,triggered by the cr

83、isis in the US market for subprime mortgages.We provided for extensive transparency at a very early stage,making clear that the sub-prime issue only resulted in relatively low costs for us an initial estimate we were later able to confirm.This is certainly thanks in large measure to our pronounced s

84、cepticism towards the general assessment of credit risks.We believe that the risk spreads have almost always been too low in recent years,which is why we took such a restrained approach,especially to structured credit products.The relatively low impact of the crisis on us reflects this fact.I think

85、that such a risk-conscious approach is appropriate for an insurer,and especially a reinsurer,given that our core service the promise of insurance cover is to improve our clients risk situation.In order to continue providing this service on a sustained basis,we must be among the best in assessing,eva

86、luating and managing risks.It is the only way to“turn risk into value”,as we say.What do I expect for the business year 2008?Our financial goals are again ambitious in the current year.With another RORAC target of at least 15%and against the backdrop of increasing competition in reinsurance,we are a

87、iming at a consolidated result of 3.03.4bn,which is around 200m more than the 2.83.2bn range set a year ago for 2007.We can achieve this excellent result by resolutely pursuing our strategy geared to sustained profitability and,as a primary insurer and reinsurer,selectively exploiting the opportunit

88、ies that the global risk market presents.Yours sincerely,Dr.Nikolaus von BomhardChairman of Munich Res Board of Managemente_01_Inhalt_AktBrief_1-3 3e_01_Inhalt_AktBrief_1-3 310.03.2008 14:00:11 Uhr10.03.2008 14:00:11 Uhre_02_Magazin_4-26 4e_02_Magazin_4-26 407.03.2008 18:51:54 Uhr07.03.2008 18:51:54

89、 UhrThe joy of winningWinning is usually expressed in numbers.In sport,these may be times,distances or heights.In our business,they are data in the financial statements.For example,the record profit we achieved for the fourth time in a row.But numbers can scarcely reflect what else winning entails.T

90、hey say little about the fitness needed to compete,the technique and ability required to break records,or the will and endurance essential to lasting success.Above all,figures do not reveal anything about the sheer joy of winning.That is what we feel when we develop insur-ance solutions designed to

91、protect livelihoods in Latin America and elsewhere.When,with intelligence and resolve,we take the sting out of the seemingly inevitable cycle.When we take the idea of legal expenses insurance to a culture where legal practice was previously based on Confucian tradition.When,in the booming CIS states

92、,we take the lead in life reinsurance.And when we develop smart solutions to insure the Caribbean island states against windstorm losses.And this joy of winning spurs us on to ever greater success.Munich Re Group Annual Report 20075e_02_Magazin_4-26 5e_02_Magazin_4-26 507.03.2008 18:52:01 Uhr07.03.2

93、008 18:52:01 UhrThe joy of winninge_02_Magazin_4-26 6e_02_Magazin_4-26 607.03.2008 18:52:03 Uhr07.03.2008 18:52:03 UhrStart-up capital:Courage,skill and personal initiative The joy of winninge_02_Magazin_4-26 7e_02_Magazin_4-26 707.03.2008 18:52:16 Uhr07.03.2008 18:52:16 Uhr8Munich Re Group Annual R

94、eport 2007 Microinsurance helps beat the poverty trapBucaramanga,Colombia:Located north-east of Bogot,the capital of Santander Province with its suburbs and slums has around one million inhabitants.Its population structure is characterised by a large under-and middle class,and many of the citys inha

95、bitants attempt to make a living for themselves and their families through small retail or manufacturing businesses.These people,whose daily income is in the range of US$2 10 a day,previously had no access to suitable insurance prod-ucts.But now they have the oppor-tunity to take out cover against t

96、he consequences of death,severe illness,natural hazards,burglary,theft,rob-bery and fi re,cushioning the impact of serious losses in earnings.This advance is down to the success-ful work of a project group which,applying itself to the task with great passion,innovative spirit and untir-ing applicati

97、on,examined the poten-tial for microinsurance in Latin Amer-ica and then,in close cooperation with a primary insurance partner and a microbank,designed insurance products specially tailored to micro-businesses.The project began with a precise analysis of the very dynamic Colom-bian microfi nance mar

98、ket,which showed great interest in supplement-ing its services with insurance prod-ucts.The idea of offering microinsur-ance proved to be a perfect extension to the already successful practise of granting microloans.Munich Re found an optimum long-term distri-bution partner in the award-winning Wome

99、ns World Banking in Bucara-manga,a highly recognised micro-bank which,as its name suggests,is geared particularly to women clients.With Suramericana as the primary insurance partner,we had the ideal combination for devising the best possible offers and integrating them into the existing value chain.

100、Protection against loss of incomeOver the last two years,this coopera-tion has produced three different products,two of which are already on sale.The fi rst to be launched,in August 2006,was the life insurance policy“Apoyofuturo”(support for the future),which provides cover against mortality,disabil

101、ity and severe ill-nesses for a premium of US$1 6 per month.Demand for this product,whose insurance benefi ts can help bridge losses in earnings,is very high.Since November 2007,a property pol-icy has also been available for insur-ing houses,shops and goods.The perils covered include not only burg-l

102、ary,theft,robbery and fi re but also natural hazards.People with micro-businesses often live and work in poorly structured buildings situated in very vulnerable locations.Munich Res Geo Risks Research unit has cal-culated special insurance rates for these risks.As the sums insured are very low,the m

103、onthly premiums range between only US$0.3 andUS$10.The third product,which is currently about to be marketed,is not directly related to microbusiness but covers the microbanks liquidity in the event of an earthquake.Small,modest businesses like basket-weaving or ice-cream vend ing are doubly threate

104、ned in the poorest countries,not only by the risks always associated with self-employ-ment,but also by the lack of insur-ance for such individual enterprises.In the worlds 100 poorest countries,only 3%of the people have access to insurance products.Microinsurance could signifi cantly improve this si

105、tuation.Through a fair relation ship between insurers and insureds,based on market-economic prin-ciples,poverty could be combated and stability gained as proved by the pilot project conducted by Munich Re in Latin America.Dr.Ralf Mentzel,member of the Innovative Solutions Team,contributed his extens

106、ive knowledge of the Latin American market to the interdisciplinary project group.The joy of winninge_02_Magazin_4-26 8e_02_Magazin_4-26 811.03.2008 10:40:56 Uhr11.03.2008 10:40:56 Uhr9Munich Re Group Annual Report 2007For the project in Colombia,Munich Re left the“beaten track”and risked entering l

107、argely unknown market territory.And with great success!Taking the whole of Latin America,with its large number of potential microinsurance clients,there are interesting growth prospects in the lines of health,life and property insurance.In addition,the business fi eld of microinsurance is an ideal c

108、ombination of market-economic thinking and social responsibility.Munich Re is already an opinion leader in Colombia in the fi eld of microinsurance and at the same time supports the countrys development by enabling people with low incomes to build up and secure a living.Microinsurance has global pot

109、entialMunich Re is examining the potential of microinsurance not only in Latin America but also in other parts of the world.In Indonesia,for instance,spe-cial fl ood coverage could be an inter-esting proposition,and a study has already been carried out for this region in cooperation with GTZ,the Ger

110、man Society for Technical Coop-eration.When devising microinsur-ance products,the watchwords are“simple and effi cient”in distribu-tion,in underwriting,and particularly in benefi t management,which pri-marily requires the swift and uncom-plicated payment of a fi xed amount.Since its formation in 200

111、5,the Munich Re Foundation has also been closely involved with the subject of microinsurance,albeit at a different level.Given its objective concerning itself the challenges of population growth and fi ghting poverty the foundation is committed to creating sustainable structures for microinsur-ance

112、and facilitating contact between those affected,insurers,regulatory authorities and fi nance institutions.In November 2007,more than 300 experts from over 50 countries met to discuss the latest trends in this area at the third International Microinsur-ance Conference in Mumbai,an event organised by

113、the Munich Re Founda-tion in collaboration with the CGAP Working Group on Microinsurance.The fact that every third conference participant was a representative from a private insurer bodes well for the future provision of this cover for the less well-off.Small businesses like the one run by theice-cr

114、eam vendor in Bucaramanga,above,benefit from microinsurance,which gives them a buffer above the poverty line if they are hit by an insured event.How microloans and microinsurance interactSource:Munich ReMicroloans help business start-ups above thepoverty lineMicroinsurance prevents business start-up

115、s from falling below the poverty line if an insured event occursBusiness start-upsThe joy of winningEvente_02_Magazin_4-26 9e_02_Magazin_4-26 907.03.2008 18:52:21 Uhr07.03.2008 18:52:21 UhrThe joy of winninge_02_Magazin_4-26 10e_02_Magazin_4-26 1007.03.2008 18:53:32 Uhr07.03.2008 18:53:32 UhrSome va

116、lues are cycle-resistant The joy of winninge_02_Magazin_4-26 11e_02_Magazin_4-26 1107.03.2008 18:53:37 Uhr07.03.2008 18:53:37 Uhr12Munich Re Group Annual Report 2007 Know-how that takes the sting out of insurance cyclesIn recent decades,price development for reinsurance cover in property-casualty bu

117、siness has not been linear.Phases of rising premiums(“hard markets”)have recurrently been suc-ceeded by periods in which prices fall(“soft markets”).This phenomenon was evident after the severe hurri-cane losses of 2004 and 2005 in the USA,when the price of reinsurance cover for natural catastrophe

118、losses rose dramatically.At the same time,the price dropped in Europe before Winter Storm Kyrill cost insurers 4.5bn in 2007.How do these fl uctu-ations come about?There are a number of causes.The capital base of insurers is weakened by high claims burdens.Demand for reinsurance grows and the capaci

119、ty available becomes scarcer so prices go up.If the capital situation of insurers improves again,they tend to revert to carrying such risks themselves.Demand ebbs,capacity increases,and premiums fall.In the past,reinsurers sometimes even fuelled this trend themselves.Since,in a favourable environmen

120、t,they were able to achieve large profi ts on the capital markets,they expanded their market shares,practising“cash fl ow underwriting”,which frequently disregarded the technically required price for the rein-surance cover and focused only on growth.But what is the technically correct price?In calcu

121、lating this fi g-ure,there was often a tendency to take a purely retrospective approach,determining the expected costs for future business on the basis of his-torical loss experience.But particular-ly in the light of growing climate change,we know that the past is no longer a reliable guide for the

122、future:extreme events will increase,as will the economic and insured losses that they trigger.Resolutely managing the cycleMunich Re is therefore pursuing a clear strategy to counter the volatility of its business.We consistently put profi tability before growth and gear the value-based management o

123、f our business and the variation in our risk capital to this objective.We use various levers to keep our operating result positive in softening markets.For example,we keep a close eye on market trends,knowing from experience that markets develop differently from region to region and from segment to

124、seg-ment.We conduct“cycle surveys”worldwide,and tailor our portfolio management to the fi ndings.In the critical phase of our annual treaty renewals,we have a detailed moni-toring process in place to maintainan up-to-the-minute overview of port-folio and price development.Our managers are thus able

125、to steer their portfolios successfully through the renewal phase.There are objects you can rely on to keep their value:classic cars,for example.And if their owners drive carefully,they can expect a large no-claims bonus from their insurers after a few accident-free years.Insurers see things in a sim

126、ilar way when it comes to their own reinsurance:after years with low claims,pressure on premiums in property-casualty rein-surance increases.From Munich Res point of view,the situation is differ-ent:the technically correct price can-not be determined only with refer-ence to the past the calculation

127、has to consider what we will need to pay for future loss events.And fate may strike tomorrow.Consequently,we practise active cycle management to keep the volatility of our business low.And classic cars actually play a small part in the equation.Independent of the cycle:US insurer Midland insures not

128、 only classic cars but also watercraft,such as these boats in Boston Harbour.The joy of winninge_02_Magazin_4-26 12e_02_Magazin_4-26 1213.03.2008 10:38:56 Uhr13.03.2008 10:38:56 Uhr13Munich Re Group Annual Report 2007In order to react faster and more inci-sively to new market developments,we are als

129、o making our operative units in property-casualty reinsur-ance more effective:by combining marketing and customer care for the respective markets in client manage-ment units and separating these functions from the actual under-writing,we will ensure that acknow-ledged experts are deployed in every p

130、osition on the one hand,dedicated client managers with excellent mar-ket knowledge and,on the other,technically skilled underwriters who can concentrate fully on the operative challenges.Special training courses support this organisational change,which we are also promoting through suitable incentiv

131、es.Profi table nichesIn addition to these internal meas-ures,we are optimising the structure of our portfolio.We are successfully investing in operations closer to pri-mary insurance,such as MGA(man-aging general agency)business,where we can apply our risk and mar-ket knowledge in profi table niches

132、.By further developing these niche segments,we also largely detach ourselves from the cycle.This is where classic cars come in.The US insurer Midland,which we signed an agreement to acquire in October 2007,is a case in point.It offers specialty insurance products and services for such items as manuf

133、actured housing(material damage and similar covers)as well as protection for watercraft,snow mobiles,motorhomes,motor-cycles and classic cars.Besides our disciplined underwriting,active capital management is the sec-ond important pillar of our cycle man-agement.By the end of 2010 we will have return

134、ed a total of 8bn to our shareholders through share buy-backs and higher dividends.This en ables us to have just the right amount of capital(and thus capacity)available for profi table business.Excess capital that does not meet our ambitious return requirements is withdrawn from the market.In the re

135、newals at 1 January 2008,we demonstrated that this strategy can be successful even in a competitive environment where prices are com-ing under increasing pressure.We renewed some two-thirds of our treaty business in property-casualty and kept average price erosion down to 2.8%.The market values our

136、capital strength and the fi rst-rate services we offer:in one-third of our treaty busi-ness,we benefi t from being the sole reinsurer or from having agreed spe-cial conditions.Excellence in under-writing,good client relationships,intelligent distribution channels and a well-diversifi ed portfolio th

137、ese are the platform for our continued high earnings potential in the future.Dr.Oliver Bsse(Group Development)and Vanessa Schonder(Corporate Underwrit-ing)consider the perspectives of underwrit-ing and Group strategy in their work on cycle management.The joy of winningCycle management at all levelsC

138、ycle management is not a one-off affair but a con-stant process in which Munich Re involves both top management and operative levels.Source:Munich ReCycle analysis and evaluationPlanning and steering processRisk modellingCoordination of strategy and pricingOngoing processPrudent risk underwriting an

139、d monitoringe_02_Magazin_4-26 13e_02_Magazin_4-26 1307.03.2008 18:55:11 Uhr07.03.2008 18:55:11 UhrThe joy of winninge_02_Magazin_4-26 14e_02_Magazin_4-26 1407.03.2008 19:01:09 Uhr07.03.2008 19:01:09 UhrOld tradition:Combat sport in South Korea The joy of winninge_02_Magazin_4-26 15e_02_Magazin_4-26

140、1507.03.2008 18:59:26 Uhr07.03.2008 18:59:26 Uhr16Munich Re Group Annual Report 2007Rising need for legal protectionIn practice,those affected have not been helped by this development,frequently having to abandon any hope of obtaining justice because they could not afford to take legal action.An unt

141、enable situation,as shown by a market study in Seoul,confi ming the need for legal protec-tion products.With the aim of fi lling this gap,D.A.S.began working on an exceptionally innovative project:a legal expenses insurance policy for South Korea,the very fi rst of its kind in the South Korean marke

142、t.One positive factor when it came to devising the companys fi rst product of this nature outside Europe was that the basic legal set-up and main legal principles in South Korea are comparable with Western standards,having been infl uenced by German and American law in the 20th century.In designing

143、the individual cover,D.A.S.was therefore able to draw on its enormous experience with such policies in 15 European countries.A particular challenge was to come up with a product that was cost-effective and affordable despite the monopoly lawyers enjoy under the law and the dominant position of the l

144、egal profes-sion(altogether,there are only 8,000 lawyers in South Korea).Innovation:Legal expenses insurance from D.A.S.Ethical principles in East Asia,and thus in South Korea,were long based on the age-old tradition of Confucian virtues.These still govern social life today,albeit to a decreasing ex

145、tent.The attitude to law in South Korean society was for centuries incompat-ible with that of the Western world,since a central tenet was not to dis-rupt social harmony.This included recognising the socially dominant ideal:living in a clearly structured community in which the crucial factor was resp

146、ect of social status and the infl uence it conferred.A personal net-work of family and friends was con-sidered the basis for advancement and successfully solving problems.Invoking the law in confl ict situations was more or less taboo the reason behind the relatively weak legal trad-ition in South K

147、orea.These patterns of social co-existence have slowly but surely been breaking down since the democratisation of South Korea in 1987.Despite still being generally conservative in nature,the current generation of 30-to 40-year-olds increasingly favour other forms of resolving disputes.Especially in

148、the burgeoning,an onymous conurbations,confl ict resolution is becoming more and more a legal matter,as the nature of road traffi c,housing markets and per-sonal enterprise undergoes dynamic change.Confucian tradition and the assertion of personal rights were virtually irre-concilable in South Korea

149、 until a few years ago.But the modernisation of the country has meant that younger people in particular are gravitating towards Western ideas including legal equality and open access to the law.From summer 2008 onwards,South Korean citizens who want to protect their rights should be able to take out

150、 legal expenses insurance:a completely new product in the mar-ket,developed with great expertise and innovation by D.A.S.Rechts-schutz,a member of the ERGO Insur-ance Group.D.A.S.Korea:Benefi ts provided under legal expenses insuranceThe authorisation process for D.A.S.Gwolli Boho Boheom Jusikhoesa

151、is currently taking place.The new company is set to commence operations with its extensive range of products by summer 2008 at the latest.Legal information Forms Document deposit Recommendation of lawyer Legal advice at lawyers office Legal advice by phone Legal advice online Document service Review

152、 of success prospects Recommendation of lawyer Provision of legal services Mediation Conflict resolution Review of success prospects Filing of claim Recommendation of lawyer Provision of legal services Representation by lawyer in court Lawyers fees Court costs Experts fees Opposing partys costs if c

153、ase is lost Bail Interpreters fees Costs of copies,postage,etc.Preparatory legal protection servicesLegal adviceOut-of-court settlementsCourt settlementAssumption of costs24-hour emergency lawyer serviceModuleBenefitsThe joy of winninge_02_Magazin_4-26 16e_02_Magazin_4-26 1607.03.2008 18:59:40 Uhr07

154、.03.2008 18:59:40 Uhr17Munich Re Group Annual Report 2007The new company is a joint ven ture:besides D.A.S.Rechtsschutz-versicherung AG,Munich,with a stake of 75%,other partners are South Korean shareholders Green Fire&Marine Insurance(property insurer),CJ Home Shopping(whose business includes marke

155、ting insur-ance on television)and the legal ser-vices provider Law Market Asia.The Munich companys wealth of experi-ence in legal protection and the fran-chise strength of the Korean partners are a perfect com bination for tapping the potential of this new niche mar-ket.Close cooperation between sta

156、ff in Munich and Seoul,where the com-pany has just moved into its new offi ce premises,secures the neces-sary knowledge transfer and will le verage the new products success.Over a fi ve-year period,an insurance portfolio with a volume of 25m is to be built up,although this fi gure is based on a very

157、 conservative progno-sis.The market potential is estimated at several hundred million euros inthe medium to long term.The careful preparation of the whole project and the convincing negotia-tions that D.A.S.representatives con-ducted with the authorities in recent months promise swift progress in ob

158、taining authorisation from the South Korean fi nancial supervisory authority.D.A.S.legal expenses insurance is scheduled to be launched in South Korea in summer 2008 at the latest.Then those who want to be sure of protecting their rights if a dispute arises can take out insurance with the certainty

159、that they will not have to run fi nancial risks in order to get justice.The areas in which legal protection is of particular importance to South Koreans are road traffi c law and civil law(especially in connection with housing issues and the legal con-cerns of small businesses).D.A.S.aims to market

160、its product to all sec-tions of the population,with the main focus on car-owners,city tenants and the self-employed among the mod-ern generation.D.A.S.helps promote legal equalityD.A.S.Gwolli Boho Boheom Jusikhoesa,the offi cial name of the newly formed insurance company with its head offi ce in the

161、 South Korean capital,pays the costs and advance expenses necessary to pur-sue legal interests.These include law-yers charges,court costs,witnesses and experts fees,bail and enforce-ment expenses.In addition,the opposing partys costs will be assumed where they have to be borne by the insured.D.A.S.w

162、ill arrange legal counsel for policyhold-ers and put them in a fi nancially strong position with sound profes-sional support.It will thus help to promote the important principle of equality before the law in South Korea.Dr.Dong-Ho Lee,general manager of D.A.S.Gwolli Boho Boheom Jusikhoesa in Korea,w

163、ill be launching an innovative product on a market in which tradition is all-pervasive.The joy of winninge_02_Magazin_4-26 17e_02_Magazin_4-26 1707.03.2008 18:59:40 Uhr07.03.2008 18:59:40 UhrThe joy of winninge_02_Magazin_4-26 18e_02_Magazin_4-26 1807.03.2008 18:59:42 Uhr07.03.2008 18:59:42 UhrBuild

164、ing security for old age in the new Russia The joy of winninge_02_Magazin_4-26 19e_02_Magazin_4-26 1907.03.2008 19:00:11 Uhr07.03.2008 19:00:11 Uhr20Munich Re Group Annual Report 2007 Life insurance boom in the CIS statesThe CIS states belong to the insur-ance industrys most important emerging marke

165、ts.Having recog-nised this trend early on,Munich Re established a liaison offi ce in Moscow in 1991,which over the next few years developed and promoted life and non-life reinsurance business in the former Soviet states.Given the favourable prospects,we began hand-ling life reinsurance business via

166、our own representation offi ce in 2001 to take systematic advantage of our opportunities in these new markets.Our extensive range of services offer our cedants crucial added value,including thorough training pro-grammes for the underwriters of our client companies,who thus benefi t from our exceptio

167、nally broad market know-how.For the supervisory authorities of the most important markets,i.e.Russia,Ukraine and Kazakhstan,we have been highly sought-after discussion partners for key decisions about the basic par-ameters of the insurance market.Business performance has exceeded our expectations:fr

168、om 2002 to 2004,premium income in life insurance quadrupled,and our reinsurance pre-mium volume experienced above-average growth.Our signifi cant mar-ket share made us the uncontested market leader.It quickly transpired that our previous capacities were no longer suffi cient to cope with the dimensi

169、ons emerging,particularly since the many international insurers entering the market were an indica-tion that growth rates in the years to come were likely to remain high.In 2005,Munich Re therefore drafted its fi rst plans for conducting life reinsur-ance business in the CIS countries via an indepen

170、dent subsidiary.The economies of the CIS countries are constantly growing.Millions of families in the new Russian middle class are benefi ting achieving affl u-ence and signifi cantly improving their standard of living.As prosperity mounts,so does the need to revisit the issue of social security for

171、 the elderly,and the demand for life insur-ance policies is growing.This trend is fuelling high growth rates in the primary insurance industry.With our new subsidiary Munich Re Life Rein-surance Eastern Europe/Central Asia,we are helping to shape this highly profi table market and lead the fi eld in

172、 life reinsurance.To enjoy carefree days like these pensioners in St.Petersburg,people in the CIS states will have to make provision for their old age in future.The joy of winninge_02_Magazin_4-26 20e_02_Magazin_4-26 2007.03.2008 19:00:15 Uhr07.03.2008 19:00:15 Uhr21Munich Re Group Annual Report 200

173、7Global Life Strategy functions as a catalystThis coincided with the groundwork for realigning the Groups overall international life reinsurance busi-ness.In launching our Global Life Strategy,we initiated a number of projects aimed at improving our core business and utilising alternative sales chan

174、nels to spur worldwide growth in these segments.Markets with high development potential,such as those of the CIS countries,are perfectly suited to this strategy.Munich Res Global Life Strategy therefore acted as a catalyst for the idea of putting the business in this market“on its own feet”and there

175、by participating unrestrictedly in its dynamic development.Things then moved very swiftly:Munich Re Life Reinsurance Eastern Europe/Central Asia was set up in March 2006.In October of the same year,Munich Re became the fi rst foreign reinsurance company to be granted a licence by the Russian authori

176、ties to do business in Russia.Only two weeks later,our new sub-sidiary was assigned an A2 rating by Moodys an outstanding grade for a newly established company.Last July,we were able to transfer Munich Res reinsurance treaties from Munich to the Russian subsidiary.Negotiat-ing with the Russian super

177、visory authorities,building up a future team,creating the necessary infra-structure,fi nding suitable offi ce space,and installing the requisite information technology all this had to be accomplished with the resources at hand.At the same time,business operations in Moscow con-tinued with undiminish

178、ed vigour.As an independent entity,Munich Re Life Reinsurance Eastern Europe/Cen-tral Asia is now extending Munich Res market leadership in the CIS countries.Our clients main contact partners are all present locally and have an outstanding knowledge of the market.We are thus in a position to meet th

179、e growing need for an increasingly differentiated range of services and expand it for instance,to include actuarial support.In addition,our cedants profi t from a host of other services,such as assist-ance in developing new products and drafting underwriting and claims management guidelines.We also

180、offer them access to a Russian ver-sion of MIRA,our sophisticated underwriting tool for life insurers.What is more,the establishment of our subsidiary benefi ts our own risk management too:we are now in a position to match the business we write in the respective original cur-rencies with investments

181、 in the same currencies,thereby reducing our asset-liability mismatch risks.First-class growth prospectsWe have thus created a platform that allows us to tap this markets large potential.At present,our target group for life insurance products in the CIS countries comprises some 32 million people.By

182、2010,the fi gure will have risen to 65 million.Until then,total annual premium volume in life pri-mary insurance will climb from approximately 1.1bn to over 8.2bn.We have the best possible set-up in place for expanding in line with the growth of this dynamic market.100.0%2002200320042005200620072008

183、20092010164.2%278.5%443.9%712.8%1,140.5%1,824.8%2,919.7%4,671.5%Munich Res premium income 2002 2010 In 2010,there will be around 65 million potential life insurance clients in the CIS states.Munich Res premium income is therefore set to grow rapidly.Source:Munich ReRalf Linder(left),responsible for

184、life busi-ness in central and eastern Europe,and Dmitri Demidov(right),now head of the subsidiary in Moscow,built up the new company together.The joy of winninge_02_Magazin_4-26 21e_02_Magazin_4-26 2107.03.2008 19:00:16 Uhr07.03.2008 19:00:16 UhrThe joy of winninge_02_Magazin_4-26 22e_02_Magazin_4-2

185、6 2207.03.2008 19:00:17 Uhr07.03.2008 19:00:17 UhrFirst aid after hurricanes and earthquakes.The joy of winninge_02_Magazin_4-26 23e_02_Magazin_4-26 2307.03.2008 19:00:49 Uhr07.03.2008 19:00:49 Uhr24The joy of winning A solution to withstand the elementsMotivated by the terrible damage wreaked by th

186、e 2004 hurricane sea-son,which claimed thousands of lives in the Caribbean,the World Bank set about planning a viable insurance solution for this region.The island states,while particularly exposed,had no adequate means of insuring themselves against natural catastrophe losses and the fi nancial con

187、sequences.Their economic situ-ation was all the more precarious because storm losses also wiped out their main sources of income,tour-ism and agriculture.The only relief was provided by donor countriesvia the World Bank,but this aid was usually not paid out to the countries affected until weeks or m

188、onths after the event too late to repair the worst damage or to help the people in the regions hardest hit.Together with insurance broker Benfi eld in London,the World Bank therefore developed a solution for the Caribbean island states that was based on a parametric trigger.If the intensity of a sto

189、rm or earthquake exceeds a predefi ned threshold measured in terms of wind speed or ground acceleration,for example the country affected immediately receives a payment that constitutes a reasonable approximation of the expected loss.In this scheme,the CCRIF functions as a primary insurer and contrac

190、t partner for the insured states and,in turn,has to reinsure itself at market conditions.Given our expertise in this area,the Word Bank approached Munich Re at the beginning of 2006 to ask for our support with the project.Our experts examined the concept and also the trigger function(which ensures t

191、hat the parametric criteria are related as closely as possible to the probable losses in each individual country)and proposed several modifi cations.Munich Re assumes syndicate leadFinally,in May 2006,Benfi eld put the reinsurance capacity out to tender in a roadshow.Within a very short time,thanks

192、to smooth interdisciplinary cooperation between our underwrit-ing experts,geo risk researchers,mathematicians and the innovation team responsible,we were able to quote a risk-adequate but competi-tive price and to offer capacity of up to 100%.The successful outcome was that Munich Re assumed the syn

193、di-cate lead for CCRIFs reinsurance and obtained the lions share of the rein-surance programme.In good time before the beginning of last years hurricane season,the CCRIF was able to offer cover,with the result that 16 Caribbean states were insured against natural catastrophe losses as from 1 June 20

194、07.What are the details of this new type of insurance solution?The participat-ing countries can currently insure themselves via the CCRIF against hurricane and earthquake losses.Principally,the CCRIF covers losses from natural catastrophes that are to be expected in this region every 20 to 150 years

195、.The talk was nearly always of hurri-cane damage in Florida or New Orleans,but en route the hurricanes had usually left a trail of destruction across the Caribbean.The Caribbean Islands are an exposed region in which governments were unable to insure themselves against natural catastrophe losses.Thi

196、s has now changed.Since 2007,the island states of the Caribbean have had access to a new form of coverage for hurricane and earthquake losses via the Carib-bean Catastrophe Risk Insurance Facility(CCRIF).Munich Re partnered the innovative idea from the outset and,as syndicate leader,is assuming a la

197、rge part of the reinsurance.1:20 Attachment point1:150 Exhaustion pointFlexible solutionThe CCRIF enables even financially weak states to protect themselves against peak risks.The given range of cover is an occur-rence probability of at least 1:20 and at most 1:150,i.e.the natural catastrophe in que

198、stion occurs statistically every 20 to 150 years.Within this range,the insured states can determine the cover they desire.The retention is always at least 50%.Source:Munich ReCeded portion(max.50%)50%0%100%Self insuranceMunich Re Group Annual Report 2007e_02_Magazin_4-26 24e_02_Magazin_4-26 2407.03.

199、2008 19:00:53 Uhr07.03.2008 19:00:53 Uhr25Munich Re Group Annual Report 2007The joy of winningWithin this range,the countries can select the degree of protection they desire for instance,only starting at events with an occurrence probability of 50 years,or ending at a 125-year event.In addition,the

200、states deter-mine what portion of the potential losses they are willing to carry them-selves,thus controlling the size of the insurance premium.In this way,even fi nancially weak states can insure themselves against peak risks.Clear concept,swift paymentsA further great advantage of the scheme is th

201、at the parametric trigger,being based solely on objective measurements such as wind speedor ground acceleration,enables cash payments to be made more quickly than under customary insurance models based on the actual losses incurred.Compensation can be paid after a storm as soon as the requisite inde

202、pendent readings are available and have been verifi ed,so that urgently needed measures for repair-ing the infrastructure,for example,can be fi nanced without much delay.The CCRIF carries losses of up toUS$10m per year itself and has obtained additional cover of US$110m.This is placed on the reinsur

203、ance market but also on the cap ital markets where,for risks of US$20m,Munich Res Risk Trading Unit designed a natural catastrophe swap,which was concluded between the Word Bank and the CCRIF.Under an identical swap between the World Bank and Munich Re,these risks were subsequently passed on to Muni

204、ch Re.This means that for the fi rst time emerging countries,too,are indi-rectly using the capital market to cover natural catastrophe risks.2007 already demonstrated the importance of such coverage for the region,even though it was a year with relatively low losses.After an earthquake shook the Car

205、ibbean on 29 November,the trigger was acti-vated for the fi rst time for the islands of St.Lucia and Dominica and the CCRIF paid immediately.As the claims burden for the CCRIF was within its retention of US$10m,the reinsurance cover was not affected.But the potential benefi ts of the CCRIF idea do n

206、ot end there.Thiscoverage model could be extended to other natural hazards or transferred to other regions.In other words,it presents many different opportun-ities for accessing new markets and client groups with innovative prod-ucts,and generating profi table growth.Threatened paradise:Previously,t

207、he Carib-bean island states were scarcely able to insure themselves against natural catas-trophes.Thomas Raab(left),Underwriting Manager for the Caribbean,and Andreas Moser(right)from the Innovative Solutions Team,worked successfully to change this.e_02_Magazin_4-26 25e_02_Magazin_4-26 2507.03.2008

208、19:00:54 Uhr07.03.2008 19:00:54 UhrChanges on the Boards of Munich Re Group companiesJohn Phelan retires from Munich Res Board of Management and as CEO of subsidiary Munich Re America on 31 December 2007.His successor in the USA is Anthony Kuczinsky.Dr.Peter Rder joins Munich Res Board of Management

209、 with responsi-bility for North American non-life reinsurance business,and business with global clients.Andreas Kleiner succeeds Dr.Rder as member of the Board of Management at ERGO International AG.On 1 January 2008,Dr.Lothar Meyer hands over to Dr.Torsten Oletzky as ERGOs CEO.Pages 28 f.,31Interna

210、tional Health expands US businessBy purchasing the US health insurer Sterling Life Insurance Company,Munich Re further develops its Inter-national Health segment and strengthens its competence as a global provider of integrated health management solutions,particularly in growth markets for seniors.M

211、unich Re America HealthCare also consolidates its business relationship with the US company Cairnstone,a leading provider of stop-loss covers for US employers,by increasing its stake in the company to 100%.Page 79ERGO joint venture in IndiaERGO International AG acquires a share of 26%in Indias pione

212、ering housing development fi nance com-pany,HDFC General Insurance Ltd.The joint venture unites two strong partners that are an excellent stra-tegic,operational and cultural fi t,and are both committed to the Indian non-life market.This cooperation underlines ERGO Insurance Groups international expa

213、nsion strategy.Page 91Changing Gear supports growth objectivesWith its Changing Gear programme,Munich Re announces its intention to take a clear lead in the insurance industry.Growth opportunities are to be exploited more decisively andnew business segments developed successfully.This necessitates t

214、op-quality client service in terms of both risk management and specialist knowledge.Beyond this,Munich Re practises active capital management by optimising the cost of its capital in 2007 with a subordinated bond,and by returning a large amount of equity to the capital markets.15 million shares with

215、 a volume of 2bn are repurchased in the period since May,and a dividend of 5.50 is to be paid for 2007.The new record profi t of 3.9bn corroborates the success of Changing Gear.Pages 2 f.,7 ff.,31,34 f.,40 ff.,71,86,131,134 f.Natural hazards in 2007With a large number of loss events,claims costs for

216、 natural catastrophes in 2007 are higher than in the previ-ous year.The most expensive natural catastrophe in 2007 is Winter Storm Kyrill,which swept across large parts of Europe on 18 and 19 January at wind speeds far exceeding 100 km/h on a widespread scale,leading to a claims burden for Munich Re

217、 of around 450m.Pages 70,74,80,82,90New US strategyMunich Re restructures its US busi-ness in order to signifi cantly increase its profi tability in the USA.In so doing,it focuses on the introduction of a client-group-specifi c organisa-tion and the expansion of broker business,as well building on i

218、ts lead-ing position in niche primary insur-ance segments.The agreement to acquire The Midland Company,oneof the leading specialist insurers of manufactured housing,motorcycles,vintage cars,watercraft,snow-mobiles and motorhomes,is a major step towards profi table growth in the worlds most important

219、 insurance market.Pages 12 f.,41,71,84ERGO in South KoreaERGO purchases a 65%stake in the South Korean specialty insurer Daum Direct Auto Insurance,which has an exceptional competitive position in its local direct motor insurance mar-ket.The acquisition is part of ERGOs international strategy and co

220、mple-ments its existing activities in health and legal expenses insurance in South Korea.Pages 16 f.,91Commitment to sustainabilityIn 2007,Munich Re engages in further sustainability and climate protection initiatives,with the objective of rendering its reinsurance activities climate neutral in Muni

221、ch by 2009,and by 2012 worldwide.Munich Re also joins the United Nations Global Compact initiative,which establishes international standards for com-panies in the areas of human and labour rights,environmental protec-tion and anti-corruption,and signs the ClimateWise principles,a com-mitment to rigo

222、rous assessment of climate change risks and climate protection.More information on sus-tainability at Munich Re is presented on the new sustainability portal htttp:/.Pages 37,92,117Cooperation with UniCredit extended to central and eastern EuropeMunich Re,the ERGO Insurance Group and the Italian Uni

223、Credit Group are to expand their partner-ship to include other growth markets in central and eastern Europe.This cooperation aims at extending banc-assurance sales of ERGOs insurance products in life and non-life via UniCredits subsidiaries in these countries.Page 91Notable events in 200726Munich Re

224、 Group Annual Report 2007Notable events in 2007e_02_Magazin_4-26 26e_02_Magazin_4-26 2607.03.2008 19:00:55 Uhr07.03.2008 19:00:55 UhrMunich Re Group in 2007Members of the Board of Management 28Report of the Supervisory Board 30Munich Re shares 34Strategy 40Munich Re Group Annual Report 200727e_03_MR

225、-Gruppe_27-33.indd 27e_03_MR-Gruppe_27-33.indd 2708.03.2008 9:12:20 Uhr08.03.2008 9:12:20 UhrMembers of the Board of ManagementDr.jur.Nikolaus von BomhardChairman of the Board of ManagementChairman of the Group CommitteeBorn 1956,lawyer,with Munich Re since 1985 Group Investments Group Development P

226、ress Internal Audit Executive Offices,Group Top ExecutivesDr.rer.nat.Torsten JeworrekChairman of the ReinsuranceCommitteeBorn 1961,mathematician,with Munich Re since 1990 Corporate Underwriting Reinsurance Investments Accounting,Controlling and Central Reserving for ReinsuranceDr.rer.pol.Ludger Arno

227、ldussenBorn 1962,graduate in commercial studies,with Munich Re since 2006 Germany,Asia Pacific and Africa General ServicesJohn Phelan(until 31 December 2007)Born 1947,underwriter,with Munich Re since 1973 North America28Munich Re Group Annual Report 2007Munich Re Group Members of the Board of Manage

228、mente_03_MR-Gruppe_27-33 28e_03_MR-Gruppe_27-33 2810.03.2008 13:59:40 Uhr10.03.2008 13:59:40 UhrDr.rer.pol.Thomas BlunckBorn 1965,graduate in business management,with Munich Re since 1999 Special and Financial Risks Central Procurement Organisational Design and Development Information TechnologyDr.j

229、ur.Jrg SchneiderBorn 1958,graduate in business management,lawyer,with Munich Re since 1988 Group Accounting Group Controlling Corporate Finance,M&A Integrated Risk Management Legal and Regulatory Affairs,Compliance Taxes Investor and Rating Agency RelationsGeorg DaschnerBorn 1949,chartered insurer,w

230、ith Munich Re since 1965 Europe and Latin America Corporate CommunicationsDr.oec.publ.Wolfgang StrasslBoard member responsible forpersonnel and welfare matters,within the meaning of Section 33 of the German Co-Determination Act Born 1956,graduate in economics,with Munich Re since 1988 Human Resource

231、s Life HealthCare Dr.jur.Heiner Hasford(until 28 February 2007)Born 1947,lawyer,with Munich Re since 1978 Group Investments,Corporate Finance,M&A Legal and Regulatory Affairs,Compliance General Services Organisational Design and DevelopmentDr.rer.pol.Peter Rder(from 1 October 2007)Born 1960,graduate

232、 in commercial studies,with Munich Re since 1989 Global Clients and North America 29Munich Re Group Annual Report 2007Munich Re Group Members of the Board of Managemente_03_MR-Gruppe_27-33 29e_03_MR-Gruppe_27-33 2910.03.2008 15:10:23 Uhr10.03.2008 15:10:23 Uhr Ladies and gentlemen,In 2007,the Superv

233、isory Board fulfilled all the tasks and duties incumbent upon it under the law,the Articles of Association and the rules of procedure.We advised the Board of Management in its running of the Group and con-stantly monitored and supervised its management activities,which have become even more efficien

234、t since the introduction of the Board of Manage-ment committee structure in 2006.The Board of Management consulted us in good time on all decisions of fun-damental significance and informed us regularly and comprehensively about all important business transactions,thus satisfying its reporting oblig

235、ations towards the Supervisory Board at all times.We discussed its written and oral reports thoroughly at our meetings.The Board of Management was open and cooperative in every respect as regards the Supervisory Boards suggestions and proposals for improvement.Collaboration was constructive and char

236、ac-terised by a spirit of trust.The full Supervisory Board was briefed by the Board of Management even more intensively than hitherto between meetings,with prompt information on many current business topics in the Group,such as the impact of Wind-storm Kyrill,the share buy-back,various acquisitions,

237、the subordinated bond issued in the past financial year,and the changes on ERGOs Board of Man-agement.Throughout the year under review,Dr.von Bomhard and I remained in close contact regarding questions of strategy,planning,the Companys current business performance and risk management,and events of p

238、articular signifi-cance in the Group.The shareholder representatives and employee representa-tives had the opportunity prior to the Supervisory Board meetings to discuss important topics separately with the Chairman of the Board of Management.At no time in the year under review did we see cause to c

239、arry out inspection measures in accordance with Section 111 para.2 sentence 1 of the German Stock Companies Act.Focal points of the meetings Four meetings of the Supervisory Board took place in 2007.Apart from one of the full Supervisory Board meeting,where two members were unable to attend,there wa

240、s full attend-ance on each occasion.Once again,a representative of the German Federal Financial Supervisory Authority(BaFin)took part as a guest at two of the meetings.In addition,resolutions were twice adopted by written consent in lieu of a meeting.Focal points at the meetings of the full Supervis

241、ory Board were the individual quarterly financial statements and the annual result for 2007.We obtained detailed reports on the Munich Re Groups performance,also compared with its competitors.The Groups strategic alignment and its further development were items debated several times in the financial

242、 year,and we engaged in a constructive exchange of ideas on these topics with the Board of Manage-ment.In keeping with the customary routine,the Board of Management pre-sented the Group planning for 2008 and 2009 to us for discussion.It also reported to us regularly about the Groups risk situation a

243、nd profitability,en-abling us to ascertain that integrated risk management and risk governance had been further refined.We were briefed by the Board of Management at each meeting about current topics and major losses affecting the Group.30Dr.Hans-Jrgen SchinzlerChairman of the Supervisory BoardRepor

244、t of the Supervisory BoardMunich Re Group Report of the Supervisory BoardMunich Re Group Annual Report 2007e_03_MR-Gruppe_27-33.indd 30e_03_MR-Gruppe_27-33.indd 3008.03.2008 9:12:23 Uhr08.03.2008 9:12:23 Uhr We continued to monitor the business situation of Munich Re America very closely.Other focal

245、 points of our work were compliance and anti-fraud,where the Board of Management gave us a wide-ranging overview of the preventive measures that Munich Re has taken to date.Besides this,we received ongoing information on the Changing Gear programme and the related change in cor-porate culture.The Su

246、pervisory Board welcomes this initiative of the Board of Management,which involves significant measures to boost efficiency and profitable growth and to increase the share price.In preparing for the 2007 Annual General Meeting,we concerned ourselves inter alia with share buy-backs for the first time

247、 also by means of derivatives and the use of the shares acquired,as well as with amendments to the Art-icles of Association and with a domination and profit-transfer agreement with DKV International Health Holding AG.We naturally also discussed at length the Company financial statements and the Grou

248、p financial statements for the previous financial year(2006).Beyond this,we dealt at our meetings with spe-cial topics from the Group primary insurance segment,such as ERGO in the light of industrialisation in the insurance sector,and with the question of how economic value can be created in insuran

249、ce companies using investments.Work of the committees The composition of the committees of the Supervisory Board(Standing Com-mittee,Personnel Committee,Audit Committee,Nomination Committee and Conference Committee)is shown in the overview on page 59.The Standing Committee met three times in 2007,de

250、voting itself mainly to the preparation of Supervisory Board meetings,topics of corporate governance,and reports on the development of the shareholders register.The Personnel Committee held four meetings in the year under review.It decided among other things on the extent to which the Board of Manag

251、e-ments objectives had been achieved in the previous year and on the indi-vidual Board members objectives for the coming year.It also considered succession planning for the Board of Management and the appointment and contracts of Board members.Other activities included reviewing and adjust-ing the B

252、oard of Managements remuneration and pension entitlements,and authorising the acceptance of new seats on supervisory,advisory and similar boards by members of the Board of Management.In addition,the Personnel Committee prepared information for the full Supervisory Board:a review of the structure of

253、the Board of Managements remuneration system,and the adjustment of the Board of Managements distribution of responsibilities.The Audit Committee also fulfilled its duties extensively,meeting six times in 2007.At two meetings with the external auditor,it discussed in detail the Com-pany financial sta

254、tements and Group financial statements,the Company man-agement report and Group management report,the auditors report and the Board of Managements proposal for the appropriation of the net retained profits for the financial year 2006.The Head of Internal Audit submitted his annual report for 2006 to

255、 the Audit Committee for discussion.The Audit Com-mittee closely considered the 2007 quarterly reports and,for the first time,commissioned the external auditor with the review of the half-year financial report,which it later discussed at length in the presence of the auditor.Besides this,the Audit C

256、ommittee reviewed and monitored the auditors inde-pendence and commissioned the audit for the financial year 2007,deciding on its focal points and the auditors fees.The Audit Committee also took delivery of reports from the auditor on its auditing and non-audit-related services.It continually monito

257、red the Companys risk situation,on which it obtained reports from the Board of Management at each meeting.Above all,it critically monitored the issue of exposure in markets affected by the subprime loan cri-sis.It received separate reports on the stabilisation of the new core adminis-tration system

258、in reinsurance and the development of embedded values in life reinsurance business and in life and health primary insurance business.It also 31Munich Re Group Report of the Supervisory BoardMunich Re Group Annual Report 2007e_03_MR-Gruppe_27-33.indd 31e_03_MR-Gruppe_27-33.indd 3108.03.2008 9:12:24 U

259、hr08.03.2008 9:12:24 Uhrconcerned itself several times with compliance and fraud topics in the Group.At the suggestion of the Chairman of the Audit Committee,the Compliance Officer will in future report regularly in person to the Audit Committee on these issues.This occurred for the first time at th

260、e meeting on 24 February 2008.Another topic dealt with in depth was active capital management by the Board of Management,particularly the share buy-back programme and the raising of additional hybrid capital.The Nomination Committee was established at the end of 2007.Its task is to propose to the Su

261、pervisory Board suitable candidates for election as share-holders representatives by the Annual General Meeting.The committee will begin its work in 2008.The Conference Committee as per Section 27 para.3 of the German Co-Deter-mination Act did not need to be convened.Dr.Schmidt as Chairman of the Au

262、dit Committee,and I as Chairman of the other committees,provided detailed information on the committees work at the meetings of the full Supervisory Board.Corporate governance Munich Res Supervisory Board concerned itself on an ongoing basis with and declaration of conformity the further development

263、 of corporate governance topics.In response to changes in the German Corporate Governance Code,we have expanded the Supervisory Boards rules of procedure so that the Audit Committees duties now include the topic of compliance,and a nomination committee has been established.In the year under review,t

264、he Standing Committee examined the efficiency of our Supervisory Board activities on the basis of an extensive questionnaire distributed to the full Supervisory Board.It subsequently con-sidered the results,which it used to develop improvement proposals to be discussed by the full Supervisory Board.

265、Further information on corporate governance is available in the joint corporate governance report of the Board of Management and Supervisory Board on page 119 ff.In November 2007,the Board of Management and Supervisory Board submit-ted their annual declaration of conformity with the German Corporate

266、 Gov-ernance Code as per Section 161 of the German Stock Companies Act,which can be read on page 122 of this report and on the Companys website.Changes on the On 28 February 2007,Dr.Heiner Hasford retired from Munich Res Board of Board of Management Management,of which he had been a member since 199

267、3.On 31 December 2007,Mr.John Phelan also retired,having been a member of the Board of Management since 1 April 2002.We thank both gentlemen for their successful work and exceptional personal dedication.On 1 October 2007,the Supervisory Board appointed Dr.Peter Rder to the Board of Management.In 17

268、years with the Munich Re Group,Dr.Rder had most recently served on ERGO International AGs Board of Management.At Munich Re,he is Mr.Phelans successor as the Board member responsible for North America.He has also taken over the Global Clients Division from Dr.Torsten Jeworrek.The distribution of resp

269、onsibilities on the Board of Man-agement has been adjusted accordingly.32Munich Re Group Report of the Supervisory BoardMunich Re Group Annual Report 2007e_03_MR-Gruppe_27-33.indd 32e_03_MR-Gruppe_27-33.indd 3208.03.2008 9:12:24 Uhr08.03.2008 9:12:24 Uhr Company and Group KPMG Bayerische Treuhandges

270、ellschaft Aktiengesellschaft Wirtschafts-financial statements prfungsgesellschaft audited the following documents and gave them an unqualified auditors opinion:Munich Reinsurance Companys financial state-ments and Group financial statements as at 31 December 2007,and the man-agement reports for the

271、Company and the Group.The auditors reports were sent without delay to all members of the Supervisory Board.At its meeting on 24 February 2008,the Audit Committee conferred in detail about the pre-liminary year-end figures as at 31 December 2007 and,on 10 March 2008,prepared the Supervisory Boards re

272、solution on the adoption of the Company financial statements and the approval of the Group financial statements.In this context,it examined in advance the Company financial statements and Group financial statements,the management reports and the Board of Man-agements proposal for appropriation of th

273、e net retained profits.It discussed them closely with the auditor,who was present at the meeting,and also gave consideration to the auditors reports.The Audit Committee briefed the full Supervisory Board about the outcome of its consultations at the balance sheet meeting on 11 March 2008.Subsequent

274、to the Audit Committee,the Supervisory Board also checked the Company financial statements,the Group financial statements,the Company management report,the Group management report and the proposal of the Board of Management for appropriation of the net retained profits.After con-ducting its own conc

275、luding examination,the Supervisory Board had no objec-tions to the Company financial statements and Group financial statements,and agreed with the outcome of the external audit.On the basis of the Audit Committees prior examination and the result of its own examination,the Supervisory Board approved

276、 the Company financial statements and Group financial statements at the balance sheet meeting on 11 March 2008.The Supervisory Board also agreed with the Board of Managements proposal for appropriation of the net retained profits.Words of thanks to the Board The Supervisory Board wishes to thank the

277、 members of the Board of of Management and employees Management and all staff members in the Group for their successful work and great personal commitment,which was a major factor in the excellent business performance.Also worthy of special mention in this context is the palpable willingness through

278、out the Group to live the corporate culture together.Munich,11 March 2008 For the Supervisory Board Dr.Hans-Jrgen Schinzler Chairman33Munich Re Group Report of the Supervisory BoardMunich Re Group Annual Report 2007e_03_MR-Gruppe_27-33.indd 33e_03_MR-Gruppe_27-33.indd 3308.03.2008 9:12:24 Uhr08.03.2

279、008 9:12:24 UhrOverall share price increase in difficult market environment The major international stock markets closed the year 2007 with an overall price gain.After a good start,the mood was clouded at the end of February by the collapse on the Chinese equity markets.A phase of substantial advanc

280、es in prices up to the middle of July was brought to an abrupt end by the crisis on the US credit markets.From August onwards,the stock markets moved side-ways amid great volatility.The fact that most indices still showed a gain for the year as a whole was mainly due to the hope that falling interes

281、t rates would limit the impact of the credit crisis on the real economy.The increasing weakness of the US dollar meant that European and especially German stocks were on the buy lists of international investors.Closing 2007 at 8,067 points,the DAX was up 22.3%for the year.The most important German s

282、tock market barometer thus rose by considerably more than the EURO STOXX 50,which increased by 6.9%.The US stock markets defied the home-grown subprime crisis and showed an overall gain,with the Dow Jones climbing by 6.4%and the S&P 500 by 3.5%.By contrast,the Japanese Nikkei Index closed 11.1%down

283、for the year.After the banking sector,insurance company stocks were among the biggest losers in the stock market year 2007,with the MSCI insurance index falling by 11.9%.Munich Re shares started 2007 at 130.42.After a subdued beginning,the share price fell to its year low of around 112 in mid-March.

284、Our spring announcement of the Changing Gear initiative,coupled with our excellent business results,ensured that the share price rose strongly until the start of June,with investors particularly rewarding Munich Res continued pursuit of active capital management and our intention to pay out more tha

285、n 8bn to shareholders by the end of 2010 through share buy-back programmes and dividends.Share price performance 1 January 2007=1001301201101009080JFMAMJJASONDSource:Datastream Munich Re shares DAX 30 Morgan-Stanley insurance index(MSCI)in The stock markets experienced con-siderable volatility in 20

286、07.Financial stocks in particular suffered in the second half-year from the mortgage loan crisis in the USA.Munich Re shares were one of the few European insurance stocks whose price developed positively.34Munich Re Group Annual Report 2007Munich Re Group Munich Re sharese_04_Aktie_34-42 34e_04_Akti

287、e_34-42 3407.03.2008 16:50:21 Uhr07.03.2008 16:50:21 Uhr Munich Re shares then became caught up in the downward spiral triggered by the subprime mortgage loan crisis in the USA.Not until mid-November were they able to detach themselves from the negative sector trend,after Munich Re had stated that i

288、t was only marginally affected by the subprime crisis.This helped the shares to advance to 132.94 by the end of the year.With a gain of 1.9%for the year,Munich Re shares clearly outperformed the MSCI insurance index.The weak performance of insurance stocks in general is attributable to some investor

289、s still expecting negative surprises from the credit crisis and pressure on premiums.However,Munich Re shareholders should continue to profit from the initiatives linked to Changing Gear.Analysts see potential for further More than 40 banks regularly evaluate Munich Re shares.Over half of them price

290、 gains for Munich Re shares (58%)rate our shares a buy,in some cases seeing substantial scope for further price gains.Only 7%of analysts gave the shares a negative assessment.Dividend to increase again On the basis of the record result in 2007,the dividend proposal of the Board of Management and Sup

291、ervisory Board at the Annual General Meeting on 17 April 2008 will be the payment of an increased dividend of 5.50 per share(1.00 higher than last year).Altogether,we will thus distribute a record amount of 1,124m(988m)to shareholders.With a dividend yield of approximately 4.1%(in relation to the ye

292、ar-end share price),Munich Re shares remain an attractive equity investment,which is also included in the DivDax,a subindex of Deutsche Brse AG that features the 15 DAX companies with the highest dividend yields.In former years,Munich Res dividend remained more or less constant,inde-pendent of resul

293、ts.Since 2004,we have been pursuing a more flexible divi-dend policy in conjunction with our active capital management where the amount distributed mainly depends on the result for the year and our capital requirements.Nonetheless,our aim is to pay out at least 25%of the annual result to our shareho

294、lders.For the financial year 2007 and the next two years,we have announced a minimum dividend of 1bn.Share buy-back programme with Share buy-backs continue to be an important element in increasing our earnings a volume of 2bn completed per share.On 4 May 2007,the Board of Management therefore announ

295、ced the intention to repurchase Company shares with a volume of at least 5bn by the end of 2010.As the first step in this process,it resolved to buy back shares with a value of 2bn via the stock exchange by the Annual General Meetingon 17 April 2008.This share buy-back,with a total value of 2bn,was

296、already completed by the end of January 2008,with Munich Re repurchasing 15.1 million shares at an average price of 131.96.Further details of the share buy-back programme can be viewed under Investor Relations Our Shares Share buy-back at .Altogether,the payout ratio to shareholders for 2007,i.e.div

297、idend and share-buy back,amounts to 81%of the profit for the year.35Munich Re Group Annual Report 2007Munich Re Group Munich Re sharese_04_Aktie_34-42 35e_04_Aktie_34-42 3507.03.2008 16:50:22 Uhr07.03.2008 16:50:22 Uhr Share profile Munich Re shares are no-par-value registered shares.Each share carr

298、ies one vote.First admitted for trading on the stock exchange in Munich on 21 March 1888,they are today listed on all the German stock exchanges.The major part of the trading(99.0%)takes place on the electronic platform Xetra.Reuters MUVGn ISIN:DE 000 843 002 6Bloomberg MUV2 WKN:843 002 In the year

299、under review,the average daily turnover of Munich Re shares amounted to 295m,putting us in eleventh place among the DAX stocks at year-end 2007.In terms of market capitalisation,we ranked 12th,with nearly 29bn.Free float still at 100%Until the end of February 2007,Allianz SE was Munich Res largest s

300、ingle shareholder,with 9.4%of the share capital.At the beginning of March 2007,Allianz redeemed the first part of its BITES exchangeable bond early with Munich Re shares,which reduced its stake in Munich Re to 4.9%.Its share-holding has since been allocated to the free float.In February 2008,the res

301、t of the exchangeable bond was redeemed,lowering Allianzs stake in Munich Re to around 2%.Key fi gures for our shares 2007 2006Share capital m 587.7 587.7Number of shares at 31 December m 217.9 229.6Year high 142.75 131.99Date 5.6.2007 28.12.2006Year low 112.35 97.15Date 14.3.2007 14.6.2006Year-end

302、closing price 132.94 130.42Annual performance(excluding dividend)%1.9 14.0Beta relative to DAX(daily,raw)0.9 1.0Market capitalisation at 31 December bn 29.0 29.9Market value/equity1 at 31 December 1.1 1.1Average daily turnover 000 2,316 1,910Earnings per share 17.90 15.052Dividend per share 5.50 4.5

303、0Dividend yield at 31 December%4.1 3.5Overall dividend amount m 1,124 9881 Including minority interests.2 Adjusted pursuant to IAS 8.Our largest shareholder,with over 5%,is AllianceBernstein L.P.,a US invest-ment and asset management company belonging to the AXA Group.Its stake is designated as a pu

304、rely financial investment without strategic interests.Since March 2007,our free float a prime factor for the weighting of Munich Re shares in various indices has therefore stood at 100%.The proportion of international investors remained at around the same level as in the previous year.At year-end 20

305、07,approximately 70%of our shares were held by foreign investors.Private investors accounted for around 7%at the end of the financial year.36Munich Re Group Annual Report 2007Munich Re Group Munich Re sharese_04_Aktie_34-42 36e_04_Aktie_34-42 3607.03.2008 16:50:22 Uhr07.03.2008 16:50:22 Uhr Strong w

306、eighting in many indices Munich Re shares have been represented for many years in major national and international share price indices like the DAX and the EURO STOXX 50.In the sector indices for insurance companies,Munich Re has traditionally had a high weighting.Since 2001,our shares have also bee

307、n included in the Dow Jones Sustainabil-ity and the FTSE4Good index family.These sustainability indices only accept companies that fulfil exacting ecological and social criteria and are among the best in their sector.Here Munich Re has played a pioneering role with its sus-tainability strategy and e

308、njoys an excellent reputation among socially respon-sible investors(SRIs),who hold some 2%of our stock.Our sustainability portal at http:/,which has been online since September 2007,provides detailed and up-to-date information on Munich Res activities in this area.Weighting of Munich Re shares1%DAX

309、3.6DJ EURO STOXX 50 1.2DJ EURO STOXX Insurance 10.0MSCI Euro 0.9FTSE EUROTOP 100 0.6DJ Sustainability World 0.41 Status:31 December 2007.Investor groups1Institutional investors 93.1%Private investors 6.9%Free float1 Percentage of share capital at 31 December 2007.Source:Munich Re share registerRegio

310、nal distribution1Germany 30.8%North America 24.1%Rest of Europe 29.3%UK 15.7%Others 0.1%1 Percentage of share capital at 31 December 2007.Source:Munich Re share register37Munich Re Group Annual Report 2007Munich Re Group Munich Re sharese_04_Aktie_34-42 37e_04_Aktie_34-42 3707.03.2008 16:50:22 Uhr07

311、.03.2008 16:50:22 Uhr Investor relations activities and Changing Gear is also reflected in our daily investor relations work.Munich Re shareholder service organised more than 30 roadshows during 2007 to present the goals of Changing Gear,primarily in the USA and Europe.Management also held over 150

312、individual meetings with investors and analysts at our offices.Addition-ally,as in previous years,Munich Re participated in several investor confer-ences staged by various investment banks.Besides our annual analysts conference on 4 May 2007,the investors days we held in London devoted to ERGO on 13

313、 December 2007 and to property-casualty reinsurance on 19 February 2008 met with a very positive response.More than one hundred institutional investors participated on each investors day,either in person or via videostreaming.The investors day on 7 October 2008 will inform investors about life reins

314、urance.Our work again received recognition from external specialists last year.Based on a survey of sell-side analysts,Munich Re received the award for“Most Improved Investor Relations”in the European insurance sector from the Insti-tutional Investor Research Group.But our activities are not only ge

315、ared to institutional investors:private investors can also contact Munich Re directly at any time.We publish all the presenta-tions we use in our meetings with investors on the internet as well,and are glad to send these to interested shareholders on request.Many of our events can already be followe

316、d live via webstreaming.Enquiries reaching us via our shareholder hotline or by e-mail are answered promptly by our team.We publish all important investor relations information on our website.The service pages of our shareholder portal( our shareholders various facilities,such as registering to rece

317、ive documents for the Annual General Meeting by e-mail or updating their registered share-holder data online.Higher proportion of shares Our 120th Annual General Meeting on 26 April 2007 was attended by over represented at the 4,000 shareholders at the International Congress Center Munich.The propos

318、als Annual General Meeting of the Board of Management and Supervisory Board on the individual agenda items were adopted by the shareholders with clear majorities in each case.Even though around 70%of the shares were held by foreign investors and the free float had increased to 100%shortly before the

319、 Annual General Meeting,more votes were represented 45.2%of the share capital than in the pre-vious year(43.3%).We see this further rise in the proportion of share capital represented as the fruit of our efforts to actively inform our investors and to encourage them to exercise their proxy voting ri

320、ghts at the Annual General Meeting.Information regarding our forthcoming Annual General Meeting on 17 April 2008 can be found on our website and in the dedi-cated section of our shareholder portal at Re Group Annual Report 2007Munich Re Group Munich Re sharese_04_Aktie_34-42 38e_04_Aktie_34-42 3807.

321、03.2008 16:50:22 Uhr07.03.2008 16:50:22 Uhr Current bonds issued by the Munich Re GroupIssuer Munich Reinsurance Company Munich Re America Inc.Type Subordinated bonds Subordinated bonds Subordinated bonds Senior BondVolumen 1.5bn 3.0bn4 300m4 US$0.5bnCoupon p.a.5.767%6.75%7.625%7.45%Maturity undated

322、1 20232 20283 20261 First callable on 12 June 2017.2 First callable on 21 June 2013.3 First callable on 21 June 2018.4 In 2007,this subordinated bond was transferred from Munich Re Finance B.V.to Munich Reinsurance Company,which is now the official issuer.To improve its capital structure,Munich Re i

323、ssued another subordinated bond with a volume of 1.5bn on 12 June 2007.It is a perpetual bond and callable by Munich Re from ten years after the date of issue.Up to then,it will have a fixed coupon rate of 5.767%and thereafter a floating rate.This bond closed the year at 94.6%.The prices of the subo

324、rdinated bonds issued in 2003 fell in 2007 as a result of the upheavals on the credit markets.At year-end,the euro tranche was listed at 105.3%and the pound-sterling bond at 109.6%.Munich Re Americas senior bonds closed the year at 107.3%.Other capital market instruments of the Munich Re Group39Muni

325、ch Re Group Annual Report 2007Munich Re Group Munich Re sharese_04_Aktie_34-42 39e_04_Aktie_34-42 3907.03.2008 16:50:22 Uhr07.03.2008 16:50:22 Uhr40Munich Re Group Annual Report 2007Munich Re Group StrategyChanging Gear Our course for profitable growth In recent years,we have continually refined the

326、 strategic guidelines that govern our business policy,and presented these in our annual reports.In the 2007 financial year,our application of these guidelines was again key to our success.2007 was also the year we embarked on our Changing Gear programme for profitable growth.Our objective is and wil

327、l remain a sustained increase in Group earnings per share via controlled risk.All measures used in implementing our strategy are embedded in our stringent risk management,whose integrated approach includes the area of invest-ments in particular.This has stood us in good stead amid the current turbu-

328、lence on the global financial markets.The effects of the subprime crisis have had only a relatively slight impact on us compared with other companies in the financial sector.Whilst Munich Res shares have been unable to escape the negative overall trend affecting financial stocks in particular,over t

329、he past year our shares have outperformed our peers in some cases considerably and also outstripped the MSCI and DJ EURO STOXX insurance indices.A core element of our strategic set-up as a Group is the integrated business model we resolutely pursue.This allows us to tap the global market for risks w

330、ith a focused,selective and profit-oriented approach.From a conventional perspective,this market essentially comprises the business segments of primary insurance and reinsurance.However,the establishment of our latest business segment,International Health,reveals the tremendous business opportunitie

331、s that present themselves beyond the traditional horizons of “primary insurance”and“reinsurance”in the strict sense.It is therefore con-ceivable that in future given adequate profitability we could develop further business segments with insurance as their core,enabling us to cover the global risk ma

332、rket even better,and to offer this diverse and increasingly con-verging market optimal service in line with our profitability requirements.Given this long-term strategy,we do not operate insurance and reinsurance as parallel unrelated entities.On the contrary,the firm involvement of ERGO in the Muni

333、ch Re Group as its largest primary insurer is a strategic cornerstone of our integrated business model,which is founded on diversification and broad-based synergies.Housing primary insurance and reinsurance under one roof allows us to actively steer our Group through result and market cycles.Our successful business model of primary insurance and reinsurance produces high profits and thus creates v