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Munich Reinsurance Company (DE:MUV2)
XETRA:MUV2
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Munich Reinsurance (MUV2) AI Stock Analysis

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DE:MUV2

Munich Reinsurance

(XETRA:MUV2)

Rating:73Outperform
Price Target:
€629.00
▲(18.37% Upside)
Munich Reinsurance's strong financial performance and fair valuation are the primary drivers of its overall score. While the technical analysis indicates some short-term uncertainty, the company's solid financial foundation and reasonable valuation metrics provide a stable investment outlook.

Munich Reinsurance (MUV2) vs. iShares MSCI Germany ETF (EWG)

Munich Reinsurance Business Overview & Revenue Model

Company DescriptionMunich Reinsurance Company (MUV2) is a global leader in reinsurance and risk solutions, headquartered in Munich, Germany. The company operates in various sectors, including property and casualty, life and health reinsurance, as well as specialty insurance. Munich Re offers a wide range of products and services designed to help clients manage risks and optimize their capital. By leveraging its extensive expertise in underwriting and risk assessment, the company provides tailored reinsurance solutions that support the stability and growth of its clients across diverse industries worldwide.
How the Company Makes MoneyMunich Re generates revenue primarily through its reinsurance operations, where it assumes risks from primary insurance companies in exchange for premiums. The core revenue streams include property and casualty reinsurance, life and health reinsurance, and specialty insurance solutions. Additionally, the company earns investment income from its substantial portfolio of assets, which includes bonds, equities, and alternative investments. Significant partnerships with insurance companies and a strong global presence enhance its ability to diversify risks and optimize earnings. The company also benefits from its expertise in assessing and managing risks, which allows it to price its products effectively and maintain profitability even in challenging market conditions.

Munich Reinsurance Financial Statement Overview

Summary
Munich Reinsurance demonstrates robust financial health with strong profitability and effective capital management. The company shows consistent revenue growth and improved net profit margins. However, variability in cash reserves requires monitoring.
Income Statement
85
Very Positive
Munich Reinsurance exhibits strong financial performance with a consistent increase in net income and EBIT over the years. The gross profit margin is healthy due to the nature of the reinsurance industry. Recent revenue growth from 2023 to 2024 is 4.76%, and the net profit margin has improved, reflecting operational efficiencies. However, EBITDA margin data for 2024 is missing.
Balance Sheet
75
Positive
The balance sheet shows a stable financial position with a reasonable debt-to-equity ratio of 0.19 in 2024. The equity ratio is solid at 11.39%, indicating a strong equity base against total assets. Return on equity has improved to 17.41% in 2024, demonstrating effective use of shareholder funds. However, cash reserves have decreased from previous years, which might impact liquidity.
Cash Flow
70
Positive
Cash flow analysis shows a positive trend with a significant free cash flow increase of 28.68% from 2023 to 2024, indicating better cash generation capabilities. The operating cash flow to net income ratio is 0.55, suggesting good conversion of income into cash. However, the cash flow is subject to fluctuations in the investing and financing activities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue63.15B69.30B58.61B68.45B63.86B58.64B
Gross Profit64.37B43.69B58.61B68.45B63.86B58.64B
EBITDA7.00B8.46B5.52B7.06B3.81B1.98B
Net Income4.64B5.68B4.61B3.43B2.93B1.21B
Balance Sheet
Total Assets282.62B286.51B273.79B298.57B312.40B297.95B
Cash, Cash Equivalents and Short-Term Investments5.49B186.64B8.57B149.71B171.24B164.44B
Total Debt6.32B6.32B4.71B6.45B6.80B6.74B
Total Liabilities249.31B253.77B244.02B277.37B281.46B267.95B
Stockholders Equity33.14B32.64B29.65B21.06B30.83B29.89B
Cash Flow
Free Cash Flow0.002.83B2.40B-18.32B5.23B7.22B
Operating Cash Flow0.003.14B2.54B-7.64B5.23B7.22B
Investing Cash Flow0.00-505.00M-329.00M11.35B-3.82B-6.13B
Financing Cash Flow0.00-2.23B-2.98B-2.70B-1.68B-323.00M

Munich Reinsurance Technical Analysis

Technical Analysis Sentiment
Negative
Last Price531.40
Price Trends
50DMA
561.74
Negative
100DMA
566.41
Negative
200DMA
539.80
Negative
Market Momentum
MACD
-9.15
Positive
RSI
36.50
Neutral
STOCH
38.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MUV2, the sentiment is Negative. The current price of 531.4 is below the 20-day moving average (MA) of 547.81, below the 50-day MA of 561.74, and below the 200-day MA of 539.80, indicating a bearish trend. The MACD of -9.15 indicates Positive momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 38.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:MUV2.

Munich Reinsurance Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€69.48B13.6816.65%3.76%2.77%
68
Neutral
$17.80B11.949.89%3.74%9.69%1.17%
$68.11B10.449.19%2.18%
€135.09B13.0419.77%
€36.73B14.319.11%
€29.47B11.8722.81%
€28.61B12.7519.75%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:MUV2
Munich Reinsurance
531.40
65.13
13.97%
DB
Deutsche Bank AG
35.20
19.02
117.55%
GB:0M6S
Allianz
352.70
80.88
29.75%
GB:0RLW
Commerzbank
33.60
20.94
165.40%
GB:0M9A
Hannover Rueck
244.00
-1.56
-0.64%
GB:0QA8
Talanx AG
110.89
37.04
50.16%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 10, 2025