By issuing new registered no-par-value shares against contributions in cash or in kind, Munich Re aims to increase the company's share capital by as much as EUR 117.5 million between now and 27 April 2026. This corresponds to about 20% of the current share capital. The authorization to increase the company's share capital by as much as EUR 280 million will be cancelled. Thanks to this tool, Munich Re seamlessly maintains its option to strengthen capital, if necessary, in coming years as well.
Also, effective 1 January 2022, the Supervisory Board members' remuneration will be adjusted on account of the increasing demands of their positions, and the resulting workload and time requirements.
During the Meeting, the Board of Management's remuneration system was approved. The system had already been adopted by the Supervisory Board and implemented as of 1 January 2021. Sustainability criteria play a larger role in the new remuneration system. From 1 January 2022, a category of ESG targets (based on environmental, social and governance aspects) will be added and will constitute 20% of the multi-year bonus.
Joachim WENNING, Chairman of the Board of Management of Munich Re, expressed confidence about the profitability of all the Group's fields of business during his speech to shareholders: "We have made Munich Re more profitable, more digital and leaner. Adjusted for one-off effects and major losses, our operating earnings have risen considerably over the past three years. This fundamental trend is unaffected by the impact of COVID-19 on our financial statements for 2020."
According to Mr. WENNING, the Group is well-positioned and can continue benefiting from ongoing digital transformation. The main reasons are: the intelligent use of data and digital technologies - as well as a broad portfolio of digital initiatives, partnerships and shareholdings
Regarding the climate protection, Mr. WENNING considers that: "It is now incumbent on market and thought leaders to serve as role models, and persuade as many as possible to likewise set good examples. That is why, as part of our Ambition 2025, we established truly bold and specific climate protection targets."
He added: "In the twenty-first century, progress is digital. To this end, we need an organisational framework in Europe that allows people to responsibly tap into opportunities. This is Europe's only path to becoming both less dependent on others and more competitive."
For the second time in the Company's history, the Annual General Meeting was held exclusively online due to the COVID-19 pandemic. Shareholders were able to submit questions, written statements, and video messages beforehand; watch the entire AGM on screen; and exercise their voting rights electronically.
Source: Munich Re press release
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