Corporate Responsibility Report 2013/2014 Content

Corporate Responsibility Report 2013/2014 Content p. 3 Strategy and challenges p. 4 Strategy p. 23 Challenges p. 32 Management p. 33 Responsible corporate governance p. 42 Sustainable investments p. 52 Responsibility towards staff p. 63 Our environmental awareness p. 79 Solutions p. 80 Reinsurance p. 89 Primary insurance p. 92 Munich Health p. 94 Capital management p. 98 Commitment p. 101 Focal areas p. 110 Foundations p. 114 Facts and figures p. 115 Key figures p. 120 Reporting p. 160 Imprint 2 MUNICH RE STRATEGY AND CHALLENGES MANAGEMENT SOLUTIONS COMMITMENT FACTS AND FIGURES ABOUT US Home Strategy and challenges Related topics "A sustainable and responsible approach Management Solutions is key for our core business." Commitment Facts and figures Dr. Josep Santacreu, Chairman of the Board of Management, DKV Seguros y Reaseguros S.A., Spain Munich Re (Group) Munich Re Strategy and challenges Strategy and challenges Corporate responsibility at Munich Re – Living up to our Strategy responsibility Statement by the CEO Our guiding principles Munich Re consistently pursues its entrepreneurial guiding principle of turning Fields of Action risk into value. A responsible and forward-looking approach – our corporate Objectives and measures responsibility – determines the way we deal with the risks and opportunities Milestones presented by the challenges of our time. We are therefore clearly committed to Stakeholder dialogue sustainable management, to the development of appropriate solutions and Materiality analysis insurance products, to environmental protection, and to fulfilling our social responsibilities. Challenges The business model of insurance is built on the insurer's ability to always meet the Climate change obligations assumed under its contracts. Our clients’ confidence in our financial and Globalised finance markets operational stability is hence the basis of our business. That is why our business model Demographic change is more than ever inseparably tied to the know-how needed to assess risks and to long- Access to financial solutions term, responsible management. Corporate responsibility strategy Our activities are based on a Group-wide corporate responsibility strategy, adopted by the Board of Management in March 2011 and an integral part of our Group's Core Principles since 2013. Its main objective is the integration of corporate responsibility aspects into our business, the protection of natural resources, and our social commitment. The strategy also includes ongoing and open dialogue with our stakeholders: investors, clients, staff, NGOs and representatives from the world of science and politics. This exchange enables us to identify important social challenges and changes, for which we offer suitable business solutions or develop them for the future. Taking challenges head on, identifying potential In dialogue with stakeholders, Munich Re has defined four key topic areas: climate change, increasing globalisation of the financial markets, demographic change, and access to financial solutions for lower-income sections of the population in emerging and developing countries. We aim to identify the key drivers, to understand new developments and to meet challenges with our core business – for instance, through innovative coverage concepts and new collaborations with national and international partners. 1 MUNICH RE STRATEGY AND CHALLENGES MANAGEMENT SOLUTIONS COMMITMENT FACTS AND FIGURES ABOUT US Home Strategy and challenges Statement by the CEO Strategy Ladies and Gentlemen, As an insurer and reinsurer, every day, we make what are often long-term commitments for our clients. Our ability to meet these commitments at any time is of utmost importance to us and assumes sustainable, forward-looking management of our affairs. This is the key to meeting the demands of our clients over the long term and Statement by the CEO thus also of our shareholders. Our guiding principles But as a Group with operations throughout the world, we also live up to our corporate Fields of action responsibility by consistently and critically examining – and if necessary modifying – the impact of our business activities on society and the environment. As part of this Objectives and measures process, we go beyond what the law requires and have undertaken to comply with Milestones more stringent standards. These include the UN Global Compact, the Principles for Responsible Investment (PRI), and the Principles for Sustainable Insurance (PSI). We Stakeholder dialogue are convinced that acting with a sense of responsibility is of paramount importance for all our activities. Materiality analysis Dr. Nikolaus von Bomhard The objective of our environmental management system is to achieve CO2 neutrality Chairman of the Board of Management across the entire Group by 2015. As far as our investments are concerned, by far the biggest part of these are in equities or corporate and government bonds with recognised sustainability standards. You will find further information on this subject and also links to our progress reports on the UNGC, PSI and PRI on this corporate responsibility portal. It goes without saying that we also systematically incorporate sustainability criteria all along the value creation chain of our core business, insurance and reinsurance. This is a continuously challenging task. It does not appear to us that this objective is achieved, for instance, by making an across-the-board judgement of entire industrial sectors or particular forms of cover based on rigid rules. On the contrary, we define fundamental standards and thus create a framework to serve as a guide. This enables our staff, in a specific case, to take the relevant criteria into consideration in their decision-making. We are firmly convinced that responsible actions on the part of the company and every single employee promote our business interests over the long term – for our customers, shareholders and staff, and also for the environment and society. Our corporate responsibility portal contains further information on this and on our social commitment. Only companies that regard corporate responsibility as an integral component of their company strategy can enjoy long-term success in business. The positive feed-back which we receive from across the world to our approach is reflected in the relevant ratings and awards. They are at the same time acknowlegement of our work and an incentive for us. I wish you a stimulating read. Yours sincerely, Dr. Nikolaus von Bomhard Chairman of the Board of Management June 2014 2 MUNICH RE STRATEGY AND CHALLENGES MANAGEMENT SOLUTIONS COMMITMENT FACTS AND FIGURES ABOUT US Home Strategy and challenges Our guiding principles Related topics Strategy Our guiding principles Field of action Objectives and measures For Munich Re, a forward-looking and responsible approach is axiomatic. Milestones Corporate responsibility is therefore an essential component of our Group Management strategy and a standard that applies throughout the Group. Solutions Commitment Statement by the CEO Insurance and corporate responsibility are essentially the same in that they both signify a promise for the future. As insurers, our existence is dependent on the trust of our Our guiding principles External links clients and investors. In order to keep our promises, we always have to bear in mind Fields of action the medium- to long-term orientation of our strategy. For us, achieving sustainably UN Global Compact Objectives and measures profitable growth and fulfilling societal obligations are in no way contradictory. Milestones A key aim of our business strategy is to create sustained value for our clients, Stakeholder dialogue shareholders, staff members and society as a whole. That is why corporate responsibility is an indispensable part of our Group strategy. For us, this means: Materiality analysis We incorporate ecological, social and ethical aspects in our insurance business and asset management. We have active environmental management at our locations and are endeavouring to achieve climate neutrality. Munich Re fulfills its responsibility as a member of society (corporate citizen) through involvement in issues closely related to its core business and, at its locations, in social and cultural areas. By consistently integrating corporate responsibility in the Group strategy, we are seeking to make a contribution to the profitable growth of the Munich Re Group, identify business risks and opportunities as early as possible, bring our expertise to bear on decision-making regarding global risks, further enhance Munich Re's reputation and image with all stakeholders, and increase the value of Munich Re's shares. 3 MUNICH RE STRATEGY AND CHALLENGES MANAGEMENT SOLUTIONS COMMITMENT FACTS AND FIGURES ABOUT US Home Strategy and challenges Fields of action Related topics Strategy Corporate responsibility at work Strategy and challenges Management With its five fields of action, our corporate responsibility strategy sets binding Solutions requirements for specific objectives in our Group-wide activities. Commitment Facts and Figures These fields of action embrace the three core activities of our guiding principles, paired Statement by the CEO with targeted management and the corresponding reporting and communication with External links Our guiding principles our stakeholders. United Nations Global Compact Fields of action Corporate Responsibility's fields of action Principles for Responsible Organisational positioning Investment (PRI) Principles for Sustainable Insurance Objectives

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