Munich Re Group - Münchener Rück AG

02/23/2023 | Press release | Distributed by Public on 02/23/2023 02:27

Financial Results 2022 Financial Supplement (preliminary figures)

Key figures

Key figures
Munich Re at a glance
Q1-4 2022 Q1-4 2021 Change Q4 2022 Q4 2021 Change
% %
Consolidated result €m 3,419 2,932 16.6 1,516 871 74.0
Thereof attributable to non-controlling interests €m -13 -1 <-1.000,0 -11 3 -
Earnings per share € 24.63 20.93 17.6 11.05 6.20 78.3
Return on equity (RoE) % 13.5 12.6 23.6 14.7
Return on investment (Rol) % 2.1 2.8 3.6 2.2
31.12.2022 31.12.2021 Change
%
Share price € 304.00 260.50 16.7
Munich Reinsurance Company's market capitalisation €bn 42.6 36.5 16.7
Carrying amount per share € 153.02 220.06 -30.5
Investments €m 219,797 240,300 -8.5
Insurance-related investments €m 11,128 12,283 -9.4
Equity €m 21,202 30,945 -31.5
Off-balance-sheet unrealised gains and losses1 €m 5,494 18,888 -70.9
Net technical provisions €m 232,456 234,044 -0.7
Balance sheet total €m 298,570 312,405 -4.4
Solvency II ratio % 260 227
Number of staff 41,389 39,281 5.4
1 Including those apportionable to minority interests and policyholders.
Reinsurance Q1-4 2022 Q1-4 2021 Change Q4 2022 Q4 2021 Change
% %
Gross premiums written €m 48,075 41,354 16.3 11,717 10,506 11.5
Combined ratio property-casualty % 96.2 99.6 94.4 96.4
Investment result €m 1,520 3,422 -55.6 1,432 893 60.4
Consolidated result €m 2,593 2,328 11.4 1,393 734 89.8
Thereof: Reinsurance - Life and health €m 737 325 127.1 245 86 185.9
Thereof: Reinsurance - Property-casualty €m 1,856 2,003 -7.3 1,148 648 77.0
Return on equity (RoE) % 13.8 13.4 29.9 16.6
ERGO Q1-4 2022 Q1-4 2021 Change Q4 2022 Q4 2021 Change
% %
Gross premiums written €m 19,058 18,213 4.6 4,506 4,388 2.7
Combined ratio Property-casualty Germany % 90.6 92.4 91.4 87.6
Combined ratio International % 94.3 92.9 96.1 93.1
Investment result €m 3,383 3,734 -9.4 610 532 14.5
Consolidated result €m 826 605 36.6 124 137 -10.0
Thereof: Life and Health Germany €m 485 164 196.5 38 -42 -
Thereof: Property-casualty Germany €m 185 234 -20.7 62 106 -41.7
Thereof: International €m 155 207 -25.0 24 73 -67.3
Return on equity (RoE) % 12.5 10.1 6.9 9.2

Outlook

Outlook Munich Re (Group) 2023
2023
Insurance revenue (gross) €bn 58
Total technical result - Life and health reinsurance €bn 1
Combined ratio - Property-casualty reinsurance % 86
Combined ratio - ERGO Property-casualty Germany % 89
Combined ratio - ERGO International % 90
Return on investment1 % Over 2.2
Consolidated result €bn 4.0
Economic Earnings €bn Over 4.0
1 Excluding insurance-related investments.

Investment mix

Investment mix
Unrealised
€m Carrying amounts gains/losses1 Fair values
31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021
Land and buildings, including buildings on third-party land 7,340 7,029 5,753 6,291 13,092 13,320
Investments in affiliated companies, associates and joint ventures 5,904 3,635 3,036 2,812 8,782 6,258
Loans 48,547 50,389 -4,956 8,270 43,591 58,659
Other securities available for sale 140,388 162,468 -13,065 12,967 140,388 162,468
Thereof: Fixed-interest 121,581 138,209 -15,015 8,078 121,581 138,209
Thereof: Non-fixed-interest 18,807 24,259 1,950 4,888 18,807 24,259
Other securities at fair value through profit or loss 3,956 2,950 3,956 2,950
Thereof: Derivatives 1,974 1,718 1,974 1,718
Deposits retained on assumed reinsurance 9,494 9,027 9,494 9,027
Other investments 4,168 4,803 4,168 4,803
Total 219,797 240,300 -9,233 30,340 223,471 257,485
1 Including on- and off-balance-sheet unrealised gains and losses.

Investment Result

Investment result
Q1-4 2022 RoI1 Q1-4 2021 RoI1 Q4 2022 Q4 2021
€m % €m % €m €m
Regular income 6,565 2.8 6,017 2.4 1,712 1,437
Write-ups/write-downs of non-derivative investments -3,155 -1.3 -505 -0.2 -211 -88
Gains/losses on the disposal of non-derivative investments 3,962 1.7 3,182 1.3 1,528 691
Net balance of derivatives -1,629 -0.7 -774 -0.3 -748 -377
Other income/expenses -839 -0.4 -764 -0.3 -239 -238
Total 4,903 2.1 7,156 2.8 2,041 1,425
1 Annual % return on the mean value of the investment portfolio (RoI) measured at market value as at the quarterly reporting dates. The overall investment portfolio used to determine the return for 2022 (2.1%) was calculated as the mean value of the investment portfolios (carrying amounts) as at 31 December 2021 (€240,300m), 31 March 2022 (€233,308m), 30 June 2022 (€223,275m), 30 September 2022 (€223,813m) and 31 December 2022 (€219,797m), and the off-balance-sheet unrealised gains and losses (excluding owner-occupied property and insurance-related loans) as at 31 December 2021 (€17,185m), 31 March 2022 (€12,552m), 30 June 2022 (€7,677m), 30 September 2022 (€4,485m) and 31 December 2022 (€3,674m).

Balance sheet

Consolidated balance sheet
Assets
31.12.2022 31.12.2021 Change
€m €m €m €m €m %
A. Intangible assets
I. Goodwill 3,240 3,092 148 4.8
II. Other intangible assets 1,297 1,286 10 0.8
4,537 4,379 158 3.6
B. Investments
I. Land and buildings, including buildings
on third-party land 7,340 7,029 311 4.4
II. Investments in affiliated companies,
associates and
joint ventures 5,904 3,635 2,269 62.4
Thereof:
Associates and joint
ventures accounted for
using the equity method 5,449 3,215 2,234 69.5
III. Loans 48,547 50,389 -1,842 -3.7
IV. Other securities
1. Available for sale 140,388 162,468 -22,080 -13.6
2. At fair value through profit or loss 3,956 2,950 1,007 34.1
144,345 165,418 -21,073 -12.7
V. Deposits retained on assumed reinsurance 9,494 9,027 466 5.2
VI. Other investments 4,168 4,803 -635 -13.2
219,797 240,300 -20,503 -8.5
C. Insurance-related investments 11,128 12,283 -1,155 -9.4
D. Ceded share of technical provisions 6,498 6,099 399 6.5
E. Receivables
I. Current tax receivables 695 715 -21 -2.9
II. Other receivables 32,749 29,058 3,692 12.7
33,444 29,773 3,671 12.3
F. Cash at banks, cheques and cash in hand 6,439 5,413 1,026 19.0
G. Deferred acquisition costs
Gross 11,089 10,545 545 5.2
Ceded share -664 -608 -56 -9.2
Net 10,425 9,937 488 4.9
H. Deferred tax assets 2,775 503 2,272 451.4
I. Other assets 3,080 3,167 -87 -2.7
J. Non-current assets held for sale 448 552 -104 -18.9
Total assets 298,570 312,405 -13,834 -4.4
Equity and liabilities
31.12.2022 31.12.2021 Change
€m €m €m €m %
A. Equity
I. Issued capital and capital reserve 7,422 7,432 -10 -0.1
II. Revenue reserves 15,414 13,822 1,592 11.5
III. Other reserves -5,205 6,642 -11,848 -
IV. Consolidated result attributable
to Munich Reinsurance Company equity holders 3,432 2,933 499 17.0
V. Non-controlling interests 139 116 24 20.4
21,202 30,945 -9,743 -31.5
B. Subordinated liabilities 4,748 5,055 -307 -6.1
C. Gross underwriting provisions
I. Unearned premiums 14,510 13,474 1,036 7.7
II. Provision for future policy benefits 115,663 114,586 1,077 0.9
III. Provision for outstanding claims 89,438 81,671 7,767 9.5
IV. Other underwriting provisions 11,563 21,414 -9,851 -46.0
231,173 231,145 29 0.0
D. Gross technical provisions
for unit-linked life insurance 7,780 8,998 -1,219 -13.5
E. Other provisions 2,661 4,958 -2,297 -46.3
F. Liabilities
I. Notes and debentures 300 293 7 2.4
II. Deposits retained on ceded business 1,106 1,502 -396 -26.4
III. Current tax liabilities 1,569 1,845 -277 -15.0
IV. Other liabilities 27,681 26,069 1,613 6.2
30,656 29,709 947 3.2
G. Deferred tax liabilities 136 1,300 -1,164 -89.5
H. Liabilities related to
non-current assets held for sale 214 294 -80 -27.1
Total equity and liabilities 298,570 312,405 -13,834 -4.4

Income statement ytd

Consolidated income statement
Q1-4 2022 Q1-4 2021 Change
€m €m €m €m €m %
Gross premiums written 67,133 59,567 7,565 12.7
1. Earned premiums
Gross 66,391 57,597 8,794 15.3
Ceded -2,929 -2,396 -534 -22.3
Net 63,462 55,202 8,260 15.0
2. Income from technical interest 3,435 5,783 -2,348 -40.6
3. Expenses for claims and benefits
Gross -49,405 -46,957 -2,448 -5.2
Ceded 2,448 1,574 874 55.5
Net -46,957 -45,383 -1,574 -3.5
4. Operating expenses
Gross -16,585 -14,111 -2,474 -17.5
Ceded 678 437 241 55.1
Net -15,907 -13,674 -2,233 -16.3
5. Technical result (1-4) 4,032 1,927 2,105 109.2
6. Investment result 4,903 7,156 -2,253 -31.5
Thereof:
Income from associates and joint ventures accounted
for using the equity method 52 219 -167 -76
7. Insurance-related investment result -994 1,119 -2,114 -
8. Other operating income 1,265 1,203 62 5.1
9. Other operating expenses -2,190 -2,106 -84 -4.0
10. Deduction of income from technical interest -3,435 -5,783 2,348 40.6
11. Non-technical result (6-10) -450 1,590 -2,040 -
12. Operating result (5+11) 3,582 3,517 65 1.8
13. Other non-operating result -81 -91 9 10.3
14. Currency result 676 262 414 157.9
15. Net finance costs -179 -205 26 12.7
16. Taxes on income -580 -552 -27 -4.9
17. Consolidated result (12-16) 3,419 2,932 487 16.6
Thereof:
Attributable to Munich Reinsurance Company
equity holders 3,432 2,933 499 17.0
Attributable to non-controlling interests -13 -1 -12 <-1.000,0
€ € € %
Earnings per share 24.63 20.93 3.69 17.6

Income statement Q

Consolidated income statement
Q4 2022 Q4 2021 Change
€m €m €m €m €m %
Gross premiums written 16,222 14,894 1,328 8.9
1. Earned premiums
Gross 17,732 15,430 2,302 14.9
Ceded -898 -594 -304 -51.2
Net 16,834 14,836 1,998 13.5
2. Income from technical interest 1,089 1,292 -203 -15.7
3. Expenses for claims and benefits
Gross -12,899 -11,595 -1,304 -11.2
Ceded 992 282 710 252.0
Net -11,907 -11,313 -594 -5.3
4. Operating expenses
Gross -4,782 -4,058 -724 -17.8
Ceded 175 90 85 94.8
Net -4,607 -3,968 -639 -16.1
5. Technical result (1-4) 1,409 848 561 66.2
6. Investment result 2,041 1,425 616 43.2
Thereof:
Income from associates and
joint ventures accounted
for using the equity method 9 86 -77 -89.8
7. Insurance-related investment result 298 286 12 4.1
8. Other operating income 397 426 -29 -6.9
9. Other operating expenses -671 -732 61 8.3
10. Deduction of income from technical interest -1,089 -1,292 203 15.7
11. Non-technical result (6-10) 976 114 862 758.4
12. Operating result (5+11) 2,385 962 1,424 148.0
13. Other non-operating result -52 -52 -0 -0.6
14. Currency result -672 160 -831 -
15. Net finance costs -42 -48 6 12.8
16. Taxes on income -104 -150 47 31.1
17. Consolidated result (12-16) 1,516 871 645 74.0
Thereof:
Attributable to Munich Reinsurance Company
equity holders 1,528 868 659 75.9
Attributable to non-controlling interests -11 3 -14 -
€ € € %
Earnings per share 11.05 6.20 4.85 78.3

Segment balance sheet

Segment balance sheet
Segment assets
Reinsurance ERGO Total
Life and Health Property-casualty
Life and health Property-casualty Germany Germany International
€m 31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021
A. Intangible assets 491 521 2,347 2,204 141 161 1,374 1,320 184 172 4,537 4,379
B. Investments
I. Land and buildings, including buildings on third-party land 296 274 3,153 3,160 3,569 3,247 203 209 118 138 7,340 7,029
II. Investments in affiliated companies, associates and joint ventures 45 45 4,126 1,951 509 396 120 110 1,105 1,133 5,904 3,635
Thereof:
Associates and joint ventures accounted
for using the equity method 0 0 3,893 1,714 427 338 59 47 1,071 1,116 5,449 3,215
III. Loans 637 659 792 643 45,135 47,166 1,367 1,383 617 538 48,547 50,389
IV. Other securities
1. Available for sale 19,941 23,269 50,537 55,785 51,572 61,315 5,468 5,742 12,869 16,356 140,388 162,468
2. fair value through profit or loss 318 181 1,680 980 1,639 1,553 181 52 138 184 3,956 2,950
20,259 23,449 52,217 56,765 53,211 62,868 5,650 5,795 13,007 16,540 144,345 165,418
V. Deposits retained on assumed reinsurance 4,744 5,006 4,709 3,998 8 15 32 8 0 0 9,494 9,027
VI. Other investments 642 703 2,437 2,963 929 960 57 68 104 109 4,168 4,803
26,623 30,137 67,433 69,480 103,361 114,653 7,428 7,573 14,951 18,458 219,797 240,300
C. Insurance-related investments 2,624 2,748 1,034 861 5,239 6,045 0 0 2,231 2,629 11,128 12,283
D. Ceded share of technical provisions 2,506 2,607 3,190 2,651 16 15 187 262 599 564 6,498 6,099
E. Non-current assets held for sale 4 0 119 0 0 78 0 1 325 473 448 552
F. Other segment assets 21,186 20,560 21,907 16,808 8,107 7,224 2,195 1,844 2,767 2,358 56,163 48,792
Total segment assets 53,435 56,572 96,030 92,004 116,864 128,176 11,185 11,000 21,057 24,653 298,570 312,405
Segment equity and liabilities
Reinsurance ERGO Total
Life and Health Property-casualty
Life and health Property-casualty Germany Germany International
€m 31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021 31.12.2022 31.12.2021
A. Subordinated liabilities 1,057 1,168 3,678 3,874 0 0 0 0 13 13 4,748 5,055
B. Gross technical provisions
I. Unearned premiums 280 295 11,179 10,392 317 266 644 563 2,089 1,957 14,510 13,474
II. Provision for future policy benefits 13,923 13,420 -0 0 92,032 91,203 332 362 9,376 9,601 115,663 114,586
III. Provision for outstanding claims 11,242 11,054 66,136 59,070 3,160 2,947 5,776 5,636 3,123 2,963 89,438 81,671
IV. Other underwriting provisions 196 169 188 318 11,014 20,248 131 118 35 562 11,563 21,414
25,642 24,939 77,503 69,780 106,523 114,664 6,883 6,678 14,623 15,083 231,173 231,145
C. Gross technical provisions
for unit-linked life insurance contracts 0 -0 0 0 5,555 6,375 0 0 2,225 2,623 7,780 8,998
D. Other provisions 148 186 585 678 826 1,922 534 1,014 568 1,158 2,661 4,958
E. Liabilities related to
non-current assets held for sale 0 0 1 0 0 8 0 0 213 286 214 294
F. Other segment liabilities 13,890 15,658 8,752 8,247 3,387 3,154 1,777 1,053 2,986 2,898 30,792 31,009
Total segment liabilities 40,737 41,952 90,519 82,579 116,292 126,123 9,193 8,745 20,627 22,061 277,368 281,459
Equity 21,202 30,945
Total equity and liabilities 298,570 312,405

Segment income statement ytd

Segment income statement
Reinsurance ERGO Total
Life and Health Property-casualty
Life and health Property-casualty Germany Germany International
€m Q1-4 2022 Q1-4 2021 Q1-4 2022 Q1-4 2021 Q1-4 2022 Q1-4 2021 Q1-4 2022 Q1-4 2021 Q1-4 2022 Q1-4 2021 Q1-4 2022 Q1-4 2021
Gross premiums written 13,676 12,561 34,399 28,793 9,703 9,203 4,198 3,919 5,157 5,092 67,133 59,567
1. Net earned premiums 12,434 11,464 32,530 26,071 9,642 9,173 3,996 3,764 4,860 4,730 63,462 55,202
2. Income from technical interest 706 639 1,004 889 1,893 3,732 42 51 -211 472 3,435 5,783
3. Net expenses for claims and benefits -10,534 -10,239 -21,665 -17,933 -9,379 -11,283 -2,433 -2,390 -2,946 -3,537 -46,957 -45,383
4. Net operating expenses -2,011 -1,873 -9,658 -8,054 -1,627 -1,273 -1,210 -1,122 -1,401 -1,352 -15,907 -13,674
5. Technical result (1-4) 595 -9 2,211 972 530 349 394 302 301 313 4,032 1,927
6. Investment result 719 860 801 2,562 3,037 3,201 109 209 237 324 4,903 7,156
7. Insurance-related investment result 145 75 130 94 -880 661 0 0 -390 290 -994 1,119
8. Other operating result 116 58 -434 -388 -322 -276 -156 -107 -128 -189 -924 -902
9. Deduction of income from technical interest -706 -639 -1,004 -889 -1,893 -3,732 -42 -51 211 -472 -3,435 -5,783
10. Non-technical result (6-9) 274 353 -507 1,380 -59 -147 -89 51 -70 -47 -450 1,590
11. Operating result (5+10) 869 344 1,704 2,352 471 202 306 354 231 266 3,582 3,517
12. Other non-operating result -14 -10 -20 -7 -44 -46 -9 -21 6 -6 -81 -91
13. Currency result 79 43 362 119 257 77 -17 14 -4 10 676 262
14. Net finance costs -26 -36 -127 -135 16 -9 -7 -4 -35 -20 -179 -205
15 Taxes on income -171 -16 -64 -326 -214 -59 -87 -109 -43 -43 -580 -552
16. Consolidated result (11-15) 737 325 1,856 2,003 485 164 185 234 155 207 3,419 2,932

Segment income statement Q

Segment income statement
Reinsurance ERGO Total
Life and Health Property-casualty
Life and health Property-casualty Germany Germany International
€m Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021
Gross premiums written 3,548 3,196 8,168 7,311 2,400 2,366 813 769 1,293 1,253 16,222 14,894
1. Net earned premiums 3,174 2,962 8,931 7,325 2,437 2,372 1,045 985 1,247 1,192 16,834 14,836
2. Income from technical interest 191 170 257 243 498 745 10 13 134 122 1,089 1,292
3. Net expenses for claims and benefits -2,566 -2,619 -5,529 -4,596 -2,236 -2,708 -622 -551 -954 -839 -11,907 -11,313
4. Net operating expenses -532 -481 -2,908 -2,473 -447 -345 -339 -300 -382 -368 -4,607 -3,968
5. Technical result (1-4) 267 32 751 499 252 64 94 146 45 108 1,409 848
6. Investment result 320 239 1,112 654 478 437 39 26 93 70 2,041 1,425
7. Insurance-related investment result 43 2 18 -24 148 222 0 0 89 86 298 286
8. Other operating result 43 6 -135 -143 -92 -77 -33 -18 -58 -73 -274 -306
9. Deduction of income from technical interest -191 -170 -257 -243 -498 -745 -10 -13 -134 -122 -1,089 -1,292
10. Non-technical result (6-9) 215 77 738 244 35 -163 -4 -5 -10 -39 976 114
11. Operating result (5+10) 482 108 1,489 743 287 -99 91 141 36 68 2,385 962
12. Other non-operating result -9 -9 -14 8 -32 -34 -2 -12 4 -5 -52 -52
13. Currency result -97 22 -262 50 -274 78 -30 3 -9 8 -672 160
14. Net finance costs -5 -8 -29 -37 7 1 -4 0 -11 -4 -42 -48
15 Taxes on income -126 -27 -37 -116 49 13 6 -25 4 6 -104 -150
16. Consolidated result (11-15) 245 86 1,148 648 38 -42 62 106 24 73 1,516 871

Combined ratio

Notes on determining the combined ratio
Reinsurance ERGO
Property-casualty Property-casualty Germany Property-casualty International1
€m Q1-4 2022 Q1-4 2021 Q1-4 2022 Q1-4 2021 Q1-4 2022 Q1-4 2021
Net earned premiums 32,530 26,071 3,996 3,764 3,600 3,467
Net expenses for claims and benefits -21,665 -17,933 -2,433 -2,390 -2,270 -2,181
Net operating expenses -9,658 -8,054 -1,210 -1,122 -1,125 -1,056
Loss-ratio calculation adjustments 17 13 22 33 1 18
Fire brigade tax and other expenses 32 23 20 18 26 24
Expenses for premium refunds 1 0 29 30 1 -1
Other underwriting income -15 -9 -3 -3 -11 -11
Change in remaining technical provisions and other underwriting expenses -1 -1 -24 -12 -15 6
Adjusted net expenses for claims and benefits -21,647 -17,920 -2,410 -2,357 -2,269 -2,163
Loss ratio % 66.5 68.7 60.3 62.6 63.0 62.4
Combined ratio % 96.2 99.6 90.6 92.4 94.3 92.9
1 Property-casualty business and short-term health insurance not conducted like life insurance.

RoE

Notes on determining the return on equity (RoE)
Reinsurance ERGO Total
€m 31.12.2022 31.12.20211 31.12.2022 31.12.20211 31.12.2022 31.12.2021
Segment assets 149,464 148,576 149,106 163,828 298,570 312,405
Segment liabilites 131,256 124,530 146,112 156,929 277,368 281,459
Adjustments used in the calculation of equity
Unrealised gains and losses, currency translation reserve, remeasurement gains/losses from cash flow hedges -2,043 4,759 -3,162 1,883 -5,205 6,642
Adjustment item for material asset transfers between reinsurance and ERGO 976 1,020 -976 -1,020 0 0
Adjusted equity 19,275 18,267 7,132 6,036 26,407 24,303
Q1-4 2022 Q1-4 2022 Q1-4 2022
Average adjusted equity 18,771 6,584 25,355
Consolidated result 2,593 826 3,419
Return on equity (RoE) % 13.8 12.5 13.5
1 Since Q1 2022, receivables and liabilities in connection with intra-Group loans have been presented in an unconsolidated form and thus aligned with the presentation of income and expenses in connection with intra-Group loans. The previous year's figures in the segment balance sheet have been adjusted accordingly, which resulted in the RoE for the previous year decreasing from 13.5% to 13.4% in reinsurance.
Notes on determining the return on equity (RoE)
Reinsurance ERGO Total
€m 31.12.20211 31.12.2020 31.12.20211 31.12.2020 31.12.2021 31.12.2020
Segment assets 148,576 133,892 163,828 164,055 312,405 297,946
Segment liabilites 124,530 112,138 156,929 155,815 281,459 267,952
Adjustments used in the calculation of equity
Unrealised gains and losses, currency translation reserve, remeasurement gains/losses from cash flow hedges 4,759 4,994 1,883 2,689 6,642 7,683
Adjustment item for material asset transfers between reinsurance and ERGO 1,020 410 -1,020 -410 0 0
Adjusted equity 18,267 16,350 6,036 5,961 24,303 22,311
Q1-4 2021 Q1-4 2021 Q1-4 2021
Average adjusted equity 17,308 5,999 23,307
Consolidated result 2,328 605 2,932
Return on equity (RoE) % 13.4 10.1 12.6
1 Since Q1 2022, receivables and liabilities in connection with intra-Group loans have been presented in an unconsolidated form and thus aligned with the presentation of income and expenses in connection with intra-Group loans. The figures for 2021 in the segment balance sheet have been adjusted accordingly, which resulted in the RoE for 2021 decreasing from 13.5% to 13.4% in reinsurance.

Portfolio duration

Portfolio-Duration1 Assets Liabilities
31.12.2022 31.12.2021 31.12.2022 31.12.2021
Reinsurance 4.8 6.0 5.0 6.4
ERGO 7.6 9.6 6.9 9.3
Munich Re 6.5 8.3 6.3 8.4
DVO11,2 Assets Liabilities
31.12.2022 31.12.2021 31.12.2022 31.12.2021
Reinsurance 34 46 27 38
ERGO 81 125 75 125
Munich Re 114 171 102 163
1 Fair values as at 31.12.2022 (31.12.2021).
2 Market-value change due to a parallel downward shift in yield curve by one basis point, considering the portfolio size of assets and liabilities (pre-tax). Negative net DV01 means rising interest rates are beneficial.

Sensitivities

Sensitivities to interest rates, spreads and equities1
Sensitivity to risk-free interest in €bn (change in basis points) -50bps -25bps +50bps +100bps
Change in market value, gross 5.8 2.9 -5.4 -10.3
Change in on-balance-sheet reserves, net 1.8 0.9 -1.7 -3.2
Change in off-balance-sheet reserves, net 0.2 0.1 -0.2 -0.4
P&L (investment result), gross 0.1 0.0 -0.1 -0.2
P&L, net 0.0 0.0 0.0 -0.1
Sensitivity to spread2 in €bn (change in basis points) +50bps +100bps
Change in market value, gross 0.0 0.0 -3.5 -6.8
Change in on-balance-sheet reserves, net 0.0 0.0 -0.9 -1.8
Change in off-balance-sheet reserves, net 0.0 0.0 -0.2 -0.3
P&L (investment result), gross 0.0 0.0 0.0 0.0
P&L, net 0.0 0.0 0.0 0.1
Sensitivity to share prices3 in €bn (change in %) -30% -10% +10% +30%
Change in market value, gross -1.2 -0.5 0.5 1.5
Change in on-balance-sheet reserves, net 0.0 0.1 0.4 1.2
P&L (investment result), gross -1.2 -0.6 -0.4 -1.2
P&L, net -0.9 -0.4 0.0 -0.1
1 Rough calculation with limited reliability assuming unchanged portfolio as at 31.12.2022. After rough estimation of policyholder participation and deferred tax; linearity of relations cannot be assumed. Approximation - not fully comparable with IFRS figures.
2 Sensitivities to changes of spreads are calculated for every category of fixed income portfolio, except government securities with AAA ratings.
3 Sensitivities to change in share prices are calculated for listed shares only; assumptions: equity impairments as soon as market value drops below acquisition cost and best-estimate calculation of hedging impact.

On-&off-balance sheet reserves

On- and off-balance-sheet reserves
p
€m 30.9.2022 31.12.2022 Delta Q4
Market value of investments 228,298 223,471 -4,827
Total reserves -8,597 -9,228 -631
On-balance-sheet reserves
Fixed-interest securities -16,037 -15,015 1,022
Non-fixed-interest securities 2,759 1,950 -809
Other on-balance-sheet reserves1 196 163 -32
Subtotal -13,082 -12,902 180
Off-balance-sheet reserves
Real estate2 6,057 5,753 -305
Loans3 -4,109 -4,956 -847
Associates 2,537 2,878 341
Subtotal 4,485 3,674 -811
Reserve ratio -3.8% -4.1% -0.4%-pts.
1 Unrealised gains/losses from unconsolidated affiliated companies, valuation at equity and cash-flow hedging. 2 Excluding reserves from owner-occupied property. 3 Excluding insurance-related loans.

On-&off bs reserves (gross&net)

On- and off-balance-sheet reserves (gross/net)
On-balance-sheet reserves Off-balance-sheet reserves1
€m 31.12.2022 31.12.2021 31.12.2022 31.12.2021
Total reserves (gross) -12,902 13,172 3,674 17,185
Provision deferred premium refunds 4,479 -5,409 1,758 -8,115
Deferred tax 1,831 -1,848 -1,335 -2,496
Minority interests 0 -10
Consolidation and currency effects -366 -127
Shareholders' stake -6,958 5,778 4,098 6,574
1 Excluding reserves for owner-occupied property and insurance-related loans.