MURGY - Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (MURGY) Q1 2024 Earnings Call Transcript
2024-05-08 22:12:08 ET
Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (MURGY)
Q1 2024 Earnings Conference Call
May 08, 2024 03:00 AM ET
Company Participants
Christian Becker-Hussong - Head, Investor & Rating Agency Relations
Christoph Jurecka - Chief Financial Officer
Conference Call Participants
Kamran Hossain - JPMorgan
Freya Kong - Bank of America
Faizan Lakhani - HSBC
Derald Goh - RBC Capital Markets
Tryfonas Spyrou - Berenberg
Ivan Bokhmat - Barclays
Vinit Malhotra - Mediobanca
Ismael Dabo - Morgan Stanley
James Shuck - Citi
Darius Satkauskas - KBW
Presentation
Christian Becker-Hussong
Hello everyone. Good morning and a warm welcome to our Q1 Earnings Call. Today's speaker is our CFO, Christoph Jurecka. And the procedure is very straightforward. As always Christoph will start with a short introduction and then we will go right into Q&A.
And with that, I have the pleasure to hand it over to Christoph.
Christoph Jurecka
Yes. Thank you, Christian and yeah, good morning also from my side. As we announced two weeks ago, Munich Re made a successful start to the year 2024 and the operating performance in all lines of business was better than expected and a favorable capital markets environment including ForEx exchange provided an additional tailwind as well.
With a strong net income of above €2.1 billion in the first quarter, we have already achieved more than 40% of our full year guidance after just one quarter. As a consequence, the annualized ROE of 27.3% is exceptionally high.
Let's look at the Q1 earnings drivers in more detail, starting with the investment result. Supported by positive fair value changes on equities, we posted an ROI of 3.8%. The reinsurance segment in particular benefited from rising stock markets, posting an ROI of 4.5%, while ERGO delivered a very solid return of 3.3%. I'm very pleased that the running yield is further trending up as we are reinvesting new money at an ongoing high yield of 4.6%.
Let's turn to the business fields and start with reinsurance. The Life and Health, total technical result of €586 million came in significantly above the pro rata annual ambition. Beyond the release of CSM and risk adjustment in line with expectations, the performance was driven by a very pleasing new business and positive experience across the board....
Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (MURGY) Q1 2024 Earnings Call Transcript