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

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DE:MUV2

Munich Reinsurance

(LSE:MUV2)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
€629.00
▲(15.58% 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 DescriptionMünchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München engages in the insurance and reinsurance businesses worldwide. The company operates through five segments: Life and Health Reinsurance; Property-Casualty Reinsurance; ERGO Life and Health Germany; ERGO Property-Casualty Germany; and ERGO International. It offers life and health reinsurance solutions, such as financial market risks, data analytics, claims handling and underwriting, medical research, health market, capital management, and digital underwriting and analytics, as well as MIRA digital suite; and property and casualty reinsurance solutions, including agricultural risk, data analytics, infrastructure risk profiler, remote inspection, retroactive reinsurance, insurance linked securities, location risk, risk transfer, and cyber, as well as NatCatSERVICE for natural catastrophe loss database, REALYTIX ZERO, IMPROVEX, cert2go, consulting for product development, prospective structured reinsurance, and Vahana AI for motor claims. The company also provides solutions for industry clients, such as IoT cover, earnings quality insurance protection, captive insurance and risk transfer, liability, weather risks, space and satellite insurance, bioenergy plant performance insurance, solar energy insurance, wind farm insurance, mining insurance, construction projects covers and services, aviation insurance, power and utilities, oil and gas companies insurance, industrial cyber insurance, risk suite, data and location risk intelligence, digital risks, PV warranty insurance, parametric, Insure AI, liquidation damage cover, and natural catastrophes solutions. In addition, it offers life, property-casualty, health, legal protection, and travel insurance products under the ERGO brand name. The company was founded in 1880 and is based in Munich, Germany.
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 Revenue64.19B69.30B58.61B68.45B63.86B58.64B
Gross Profit62.98B43.69B58.61B68.45B63.86B58.64B
EBITDA7.89B8.46B5.52B7.06B3.81B1.98B
Net Income5.09B5.68B4.61B3.43B2.93B1.21B
Balance Sheet
Total Assets275.69B286.51B273.79B298.57B312.40B297.95B
Cash, Cash Equivalents and Short-Term Investments176.70B186.64B8.57B149.71B171.24B164.44B
Total Debt6.11B6.32B4.71B6.45B6.80B6.74B
Total Liabilities244.93B253.77B244.02B277.37B281.46B267.95B
Stockholders Equity30.58B32.64B29.65B21.06B30.83B29.89B
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
Neutral
Last Price544.20
Price Trends
50DMA
550.19
Negative
100DMA
557.65
Negative
200DMA
542.59
Negative
Market Momentum
MACD
-6.97
Negative
RSI
55.12
Neutral
STOCH
44.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MUV2, the sentiment is Neutral. The current price of 544.2 is above the 20-day moving average (MA) of 526.73, below the 50-day MA of 550.19, and above the 200-day MA of 542.59, indicating a neutral trend. The MACD of -6.97 indicates Negative momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
74
Outperform
€30.68B12.3619.74%3.54%7.50%22.49%
74
Outperform
€37.06B14.261.98%1.60%19.65%
74
Outperform
€137.67B13.3016.47%4.30%47.32%17.07%
73
Outperform
€70.55B13.9716.65%3.70%2.36%-11.93%
70
Outperform
€59.47B9.844.33%2.23%-4.39%81.95%
65
Neutral
€28.72B12.7116.95%2.43%6.51%22.56%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:MUV2
Munich Reinsurance
544.20
66.33
13.88%
DE:DBK
Deutsche Bank AG
30.03
14.95
99.16%
DE:ALV
Allianz
356.40
73.60
26.03%
DE:CBK
Commerzbank
31.88
15.77
97.94%
DE:HNR1
Hannover Rueck
254.40
6.30
2.54%
DE:TLX
Talanx AG
111.10
37.44
50.83%
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