Munich Reinsurance Company (DE:MUV2)
XETRA:MUV2
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Munich Reinsurance
(XETRA:MUV2)
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Rating:67Neutral
Price Target:
€509.00
▼(-9.88% Downside)
Action:Downgraded
Date:05/13/26
The score is driven primarily by strong fundamentals (profitability, ROE, and solid balance-sheet profile) and supportive income returns via a high dividend yield. These positives are moderated by weak technicals (price below major moving averages and negative MACD) and earnings-call risks tied to investment-result volatility and competitive reinsurance pricing/volume pressure, despite reiterated 2026 guidance.
Positive Factors
Profitability and earnings growth
Sustained multi-year net income growth shows Munich Re’s ability to generate durable profits from underwriting and investments. Rising earnings bolster retained capital and ROE, improving resilience to claims volatility and providing capacity for dividends, buybacks, and strategic investments.
Negative Factors
Uneven cash-flow generation
Material swings in operating and free cash flow indicate sensitivity to timing, claims, and investment cash events. This unevenness reduces visibility on funds available for capital returns or reinvestment and can constrain strategic action during adverse cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and earnings growth
Sustained multi-year net income growth shows Munich Re’s ability to generate durable profits from underwriting and investments. Rising earnings bolster retained capital and ROE, improving resilience to claims volatility and providing capacity for dividends, buybacks, and strategic investments.
Read all positive factors
Munich Reinsurance (MUV2) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€59.55B
Dividend Yield3.56%
Average Volume (3M)271.59K
Price to Earnings (P/E)10.1
Beta (1Y)0.69
Revenue Growth-1.59%
EPS Growth49.39%
CountryDE
Employees44,224
SectorGeneral
Sector StrengthN/A
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)38.84
Shares Outstanding126,970,116
10 Day Avg. Volume216,362
30 Day Avg. Volume271,594
Financial Highlights & Ratios
PEG Ratio1.17
Price to Book (P/B)2.19
Price to Sales (P/S)1.05
P/FCF Ratio66.01
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€552.01Price Target Upside-2.26% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)49.83
Revenue Forecast (FY)€63.83B
Munich Reinsurance Business Overview & Revenue Model
Company Description
Münchener 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...
How the Company Makes Money
Munich Re makes money mainly by underwriting risk and investing the funds it holds to pay future claims.
1) Reinsurance underwriting (core earnings driver)
- Premium income: Munich Re sells reinsurance coverage to insurance companies (ceding insu...
Munich Reinsurance Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Neutral
The call highlighted resilient and strong underlying underwriting and technical performance across business segments (EUR 1.7bn net result, solid combined ratios, Life & Health strength, improved reinvestment yield and robust capital position). However, material headwinds from weaker investment fair‑value movements, lower running income in Q1, competitive pricing pressure (notably in nat‑cat exposed reinsurance), reduced renewal volumes, and a raised outlier expectation temper the upside. Management kept the 2026 net result outlook unchanged but acknowledged the EUR 40bn reinsurance revenue target is now more challenging and emphasized reliance on deal pipeline and catch‑up effects in investments and CPI‑linked income.Positive Updates
Strong Quarterly Net Result
Net result of EUR 1.7 billion in Q1 2026, described as a pleasing start to the year and evidence of resilience across the group despite macro and geopolitical uncertainty.
Negative Updates
Investment Result Below Guidance
Return on investments was 2.9% in Q1, below full‑year guidance; rising oil & gas prices and resulting inflation concerns caused volatility and negative fair value changes in fixed income and equity portfolios, which weighed on results.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Net Result
Net result of EUR 1.7 billion in Q1 2026, described as a pleasing start to the year and evidence of resilience across the group despite macro and geopolitical uncertainty.
Read all positive updates
Company Guidance
Munich Re reiterated its 2026 group net‑result guidance of EUR 6.3bn while flagging that reaching the reinsurance revenue target of EUR 40bn is more challenging; Q1 produced a group net result of EUR 1.7bn, return on investments of 2.9% (below FY guidance), a reinvestment yield of 4.2% and a running yield of 3.5% (vs 3.7% in Q4 2025), with positive marks in alternatives/commodities offsetting negative fixed‑income/equity fair‑value moves and an expected Q2 catch‑up from inflation‑linked bonds. Underwriting metrics: Life & Health Re technical result EUR 500m; P&C reinsurance Q1 combined ratio 66.8% and normalized combined ratio 80.3% (FY target ≈80%) with reserve releases of ~6 percentage points and a discounting benefit of ~9.5% (vs guidance ~9%); the outlier/large‑loss allowance was raised to 18% (≈14.5% nat‑cat, 3.5% man‑made) after April renewals that cut renewed treaty volume by 18.5%, had >30% nat‑cat share and produced a risk‑adjusted price decline of ~3.1%. Other figures: Solvency II ≈292%, ERGO net result EUR 235m (ERGO Germany EUR 157m; ERGO P&C CR 86.7%; ERGO International EUR 78m), Global Specialty Insurance CR 83.7%, SMO contribution ~EUR 117m, and a prudent EUR 90m IBNR for the Middle East (EUR 30m reinsurance, EUR 60m GSI).Munich Reinsurance Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.90B | 69.30B | 42.31B | 39.68B | 39.71B | 64.46B |
| Gross Profit | 40.90B | 69.30B | 43.69B | 41.06B | 40.76B | 53.78B |
| EBITDA | 7.82B | 9.36B | 9.41B | 7.72B | 13.16B | 4.47B |
| Net Income | 5.09B | 6.12B | 5.68B | 4.61B | 5.31B | 2.93B |
Balance Sheet | ||||||
| Total Assets | 275.69B | 279.93B | 286.51B | 273.79B | 298.57B | 312.40B |
| Cash, Cash Equivalents and Short-Term Investments | 176.70B | 5.50B | 186.64B | 8.57B | 149.71B | 171.24B |
| Total Debt | 6.11B | 7.43B | 6.32B | 4.71B | 6.45B | 6.80B |
| Total Liabilities | 244.93B | 246.51B | 253.77B | 244.02B | 277.37B | 281.46B |
| Stockholders Equity | 30.58B | 33.25B | 32.64B | 29.65B | 21.06B | 30.83B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.10B | 2.83B | 2.40B | -18.32B | 5.23B |
| Operating Cash Flow | 0.00 | 1.27B | 3.14B | 2.54B | -7.64B | 5.23B |
| Investing Cash Flow | 0.00 | -1.46B | -505.00M | -329.00M | 11.35B | -3.82B |
| Financing Cash Flow | 0.00 | -3.82B | -2.23B | -2.98B | -2.70B | -1.68B |
Munich Reinsurance Technical Analysis
Negative
564.80
Price Trends
509.16
Negative
507.48
Negative
513.74
Negative
Market Momentum
-12.06
Positive
35.19
Neutral
36.71
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 564.8 is above the 20-day moving average (MA) of 494.89, above the 50-day MA of 509.16, and above the 200-day MA of 513.74, indicating a bearish trend. The MACD of -12.06 indicates Positive momentum. The RSI at 35.19 is Neutral, neither overbought nor oversold. The STOCH value of 36.71 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €27.70B | 8.81 | 27.86% | 2.37% | 3.40% | 31.91% | |
71 Outperform | €29.11B | 1.14 | 73.88% | 3.37% | -2.57% | 27.56% | |
67 Neutral | €59.55B | 10.10 | 20.64% | 3.56% | -1.59% | 49.39% | |
67 Neutral | €1.39B | 31.27 | 5.08% | 0.12% | -2.67% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | €1.37B | ― | 2.43% | 4.49% | ― | ― |
* General Sector Average
DE:MUV2
Munich Reinsurance
474.00
-72.12
-13.21%
DE:HNR1
Hannover Rueck
244.20
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-8.32%
DE:TLX
Talanx AG
108.60
-2.84
-2.55%
DE:WUW
Wuestenrot & Wuerttembergische
14.80
1.41
10.54%
DE:NBG6
Nuernberger Beteiligungs AG Class B
123.50
69.30
127.86%
DE:DFV
DFV Deutsche Familienversicherung AG
7.50
1.50
25.00%
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.