Munich Re Group Annual Report 2006 (PDF, 1.8

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Munich Re Group Annual Report 2006 Management report_Munich Re Group Munich Re Group Structure of the Munich Re Group The Munich Re Group is one of the world’s leading risk carriers. Our business covers the whole value-added chain in insurance and reinsurance, and we are also active in the field of asset management. The reinsurance companies in our Group operate globally. Our primary insurers traditionally concentrate on Germany and European markets with strong growth, but are now looking to extend their activities to high-potential markets such as India. We conduct our business from our respective headquarters and also via a large number of branches, subsidiaries and affiliated companies in such countries as the USA, China, India, Australia, South Africa, Korea, Canada, the UK, France, Spain, Italy, Poland and Switzerland. Control and profit transfer agreements are in place with many subsidiaries, especially those in the ERGO Insurance Group. As a result of a Group directive of 2005 governing the distribution of responsibilities and competencies between Group management and ERGO for key decisions, there is “unified control” within the meaning of the German Stock Companies Act. With a view to maintaining clearly defined strategic management of the equal-ranking business segments of primary insurance and reinsurance – and to providing for a clear assignment of responsibility – the structure of Munich Re’s Board of Management was altered with effect from 1 January 2006. The Parent Board of Management, which for legal purposes continues to represent Munich Reinsurance Company externally, has divided its responsibilities between two Board committees: the Group Committee and the Reinsurance Committee. This management report summarises the activities of our Group according to the business fields of reinsurance, primary insurance, asset management and their respective segments, rather than on the basis of the Group’s legal or corporate structure. Such segmentation is determined by how we manage our business internally. 48 Munich Re Group Reinsurance Asset management Primary insurance Reinsurance group Of the gross premiums totalling €22.2bn written in 2006, around 65.5% came from property-casualty and 34.5% from life and health business. According to our own estimates, Munich Re’s share of the world market in terms of 2006 premium amounted to around one-seventh. The market we refer to here is the global reinsurance market, since reinsurance has by nature always been an international business. It should be noted in this context, however, that the global premium income of the reinsurance markets is difficult to quantify because data is insufficient or simply not available, while the market statistics of individual countries are of limited comparability as they are based on different parameters. What is more, premium volume alone is not an adequate indicator for assessing reinsurance companies’ importance in particular markets. Since 1 January 2007, our reinsurance business has been organised into six operative divisions. Until 31 December 2006, there were seven: six servicing our propertycasualty business and special lines, and one dealing with life and health reinsurance. Responsibility for the respective client accounts continues to lie in one pair of hands. The operative divisions are also responsible for our business units abroad, including our subsidiaries. The division Life and Health underwrites our life and health reinsurance business worldwide and its structure reflects that of many of our clients, which conduct these two classes of business separately from property-casualty insurance, often through independent entities. In Europe 1, we until recently managed the propertycasualty business from our clients in Germany, Switzerland and Austria, eastern Europe, Greece, and Turkey. With effect from 1 January 2007, the division has been divided and incorporated into the new units “Europe and Latin America” and “Germany, Asia Pacific and Africa”.
Munich Re Group Annual Report 2006 Management report_Munich Re Group Consequently, Europe and Latin America (formerly Europe 2 and Latin America) is now responsible for our business in central and eastern Europe, as well as for our clients from northern, western and southern Europe, and from Latin America. Germany, Asia Pacific and Africa (formerly Asia, Australasia, Africa) conducts property-casualty business with clients in Africa, Asia, Australia and the Pacific Islands, and also serves our German cedants. Special and Financial Risks (SFR) is in charge of the special classes of credit, aviation and space, enterprise risks and contingency risks, and for alternative markets business. Besides this, it develops and implements divisionspecific innovation projects and coordinates the overarching work of the innovation teams in the non-life divisions. Risk transfer to the capital markets is handled by our new Risk Trading Unit, into which Munich American Capital Markets (MACM) – an entity that structures insurance risks for risk transfer – has been integrated. In addition, SFR also attends to our own reinsurance (retrocession). The division North America is responsible for our subsidiary Munich Re America, for Munich Reinsurance Company of Canada and for Temple Insurance Company. Corporate Underwriting/Global Clients (CUGC) handles our accounts with major international insurance groups (hence “Global Clients”) and writes business worldwide in special classes such as agriculture and workers’ compensation. Its most important markets are Germany, the UK and the USA. In addition to this, it performs important corporate underwriting functions for the reinsurance group in the property-casualty segment: its staff clarify fundamental, cross-divisional issues of underwriting policy, oversee quality assurance, integrate mathematical methods in our business processes, and set standards for claims management. Further information on our guidelines for underwriting and pricing can be found on page 56. Europe and Latin America Athens, London, Madrid, Milan, Moscow, Paris Bogotá, Buenos Aires, Caracas, Mexico City, São Paulo Subsidiaries/Branches: Munich Ré France Münchener Rück Italia Münchener Rückversicherungs-Gesellschaft Sucursal España y Portugal Munich Reinsurance Company UK General Branch Special and Financial Risks Geneva, London, Munich, New York Subsidiaries/Branches: New Reinsurance Company Great Lakes Reinsurance (UK) Munich American Capital Markets Corporate Underwriting/Global Clients London Subsidiaries/Branches: Munich Re Underwriting Germany, Asia Pacific and Africa Munich Beijing, Hong Kong, Kolkata, Kuala Lumpur, Mumbai, Shanghai, Seoul, Singapore, Taipei, Tokyo Auckland, Brisbane, Melbourne, Perth, Sydney Accra, Cape Town, Johannesburg, Nairobi, Réduit Subsidiaries/Branches: Munich Mauritius Reinsurance Company Ltd. Munich Reinsurance Company of Africa Munich Reinsurance Company Australian Branch Munich Reinsurance Company New Zealand Branch Munich Reinsurance Company China Branch Munich Reinsurance Company Singapore Branch Munich Reinsurance Company Hong Kong Branch Munich Reinsurance Company Malaysia Branch Munich Reinsurance Company Korea Branch North America Atlanta, Boston, Chicago, Columbus, Dallas, Hamilton, Hartford, Kansas City, Los Angeles, New York, Philadelphia, Princeton, San Francisco, Seattle, Montreal, Toronto, Vancouver Subsidiaries/Branches: Munich Reinsurance Company of Canada Munich Reinsurance America Temple Insurance Company Life and Health Atlanta, Brisbane, Chicago, London, Melbourne, Moscow, Mumbai, Perth, Santiago de Chile, Sydney, Toronto, Waltham, Warsaw Subsidiaries/Branches: Munich Reinsurance Company of Australasia Munich American Reassurance Company Munich Reinsurance Company Canada Branch (Life) Munich Reinsurance Company UK Life Branch Munich Reinsurance Company Life Reinsurance Eastern Europe/ Central Asia 49
Page 1 and 2: Munich Re Group Annual Report 2006
Page 3 and 4: The Munich Re Group Our operations
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Munich Re Group Annual Report 2006
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Quarterly figures Balance sheet 31.
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© 2007 Münchener Rückversicherun
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