Muenchener Rueckversicherungs-Gesellschaft in Muenchen AG Investor Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shanti Kang - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Hi, yeah, thanks very much for the presentation and for taking my question. I just had a couple, mainly on capital. So clearly, you've lifted that payout ratio target to an 80% floor across the next five years. How should we think about those returns and split between dividends versus buybacks? I think historically, that's tracked as a kind of 50-50 split. Is that something that you all continue to look to do? And then on the ROE target, that's sort of 18%. How much is that driven really by the capital return ambition versus the earnings contribution, i.e., what should we think about as the core driver between the numerator or the denominator for that? Thank you. Christoph Jurecka - Muenchener Rueckversicherungs-Gesellschaft in Muenchen AG - Chief Financial Officer, Member of the Management Board Well, thank you, Shanti. I will take your question, Christoph speaking. The first one, dividend versus buyback, obviously, we always have a bit of flexibility in that. But what you can see also on the slide deck is that the basic assumption is that dividends per share will go with earnings per share, and then we have buybacks as a flexible tool. Now, as I said, it's not carved in stone, but that's the current assumption. On your second question, ROE, there -- as always, the answer is it depends. Because as you can see, we didn't commit really to any IFRS targets for 2030. So therefore, depending on where in the ranges, and the ranges have also to an extent an illustrative character where we land in the ranges, obviously, capital management will have different contributions or different relevance, depending on where actually the business development will go. And this is exactly the kind of flexibility, which we need, and also want to have. Because who is able to predict five years? Nobody, actually. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.

Question: Shanti Kang - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Super clear, thank you. Christian Becker-Hussong - Muenchener Rueckversicherungs-Gesellschaft in Muenchen AG - Head of Investor & Rating Agency Relations The next question, please. The next one is from Ivan from, Barclays. Please, Ivan, go ahead.

Question: Shanti Kang - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Hi, thanks for taking my follow-up question. So just on life and health, that 8% to 12% top-line growth corridor is pretty punchy based on how you've performed in the past. And I was just curious, where is that growth really coming from? Is it going to be organic or inorganic? And that step up, is that really driven by changing conditions? Has something changed now versus in the past? And then the second one was just on P&C on the pendulum, slide 21, where you showed P&C swinging from being around one-third of the group back to one-half. Just curious, is there a metric that you monitor to determine whether or not pricing has bottomed out and turned again? Joachim Wenning - Muenchener Rueckversicherungs-Gesellschaft in Muenchen AG - Chairman of the Management Board, Chief Executive Officer Take the first one.

Question: Shanti Kang - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Yes. Yeah, I was just wondering at what point do you turn back into a growth position for the P&C book? I think you show that shrinking over the admission. Is that capital in the system? Is it pricing? I'm just wondering what metric you monitor. Joachim Wenning - Muenchener Rueckversicherungs-Gesellschaft in Muenchen AG - Chairman of the Management Board, Chief Executive Officer That's important that you ask it. Thank you very much, because that's an important clarification. So if you look into those pies and how they have evolved over time, what you see is the total pie is becoming larger. And it's expected to become even larger than today in the next five years. And if you ask how will it probably look in 10 years from now, it's even larger. So the whole group business will grow, first thing. And however the composition will be within that portfolio between P&C reinsurance and non-P&C reinsurance, we expect to earn more than 18% ROE. So that's important. Do we have a predefined optimal share of P&C reinsurance worth of the other lines of business? No. So whatever, from a profitability perspective, makes sense to us and adds value, and today, everything is adding value the way that we are doing, is welcome. But the more the markets allow us to grow the stable lines of business to grow, the stronger we feel ourselves on the P&C reinsurance side for the reasons that I highlighted, because the more they earn, the others, the stronger we are to offer huge capacities like we did in 2022 and '23 on the P&C reinsurance side, irrespective of whether large losses may affect us or not. That's a promise to the market which is highly valuable. But should the market turn into unattractive, which it is not today, but if so at some point, then we would be in a much stronger position in also reducing our exposures because we can afford it because we have the other three lines of business already earning so much and increasingly so and paying the dividend, interestingly, already them alone. So that is That is the whole logic. What defines the size of the pie and the composition is just the profitability that we can see in each of them. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.