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Munich Reinsurance
(XETRA:MUV2)
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Rating:78Outperform
Price Target:
€588.00
▲(15.52% Upside)
Action:Upgraded
Date:08/10/26
The score is driven primarily by strong fundamentals (rising earnings/ROE and a solid balance sheet), tempered by cash-flow volatility. Technicals are supportive with an established uptrend and positive MACD. Valuation is a notable positive with a low P/E and high dividend yield. The latest earnings call adds some caution due to lowered reinsurance revenue guidance and rising normalized P&C combined ratios despite strong H1 profitability and very strong solvency.
Positive Factors
Strong profitability and ROE
Rising net income, solid EBIT and ROE above the group’s long-term ambition indicate strong underwriting and investment economics. Sustained profitability provides internal capital for growth, dividends and buybacks while supporting resilience through insurance cycles.
Negative Factors
Lower reinsurance revenue outlook
The guidance reduction signals weaker near-term volume and market conditions in reinsurance. Although disciplined underwriting protects quality, lower earned premiums can constrain top-line growth and reduce operating leverage if the pressure persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and ROE
Rising net income, solid EBIT and ROE above the group’s long-term ambition indicate strong underwriting and investment economics. Sustained profitability provides internal capital for growth, dividends and buybacks while supporting resilience through insurance cycles.
Read all positive factors
Munich Reinsurance (MUV2) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€65.85B
Dividend Yield4.64%
Average Volume (3M)271.59K
Price to Earnings (P/E)9.7
Beta (1Y)0.60
Revenue Growth0.06%
EPS Growth38.83%
CountryDE
Employees44,595
SectorGeneral
Sector StrengthN/A
IndustryInsurance - Reinsurance
Share Statistics
EPS (TTM)53.71
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
€554.14Price Target Upside8.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)51.11
Revenue Forecast (FY)€63.01B
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 six segments: Life and Health Reinsurance, Property-Casualty Reinsurance, Global Spe...
How the Company Makes Money
Munich Re makes money primarily by underwriting insurance and reinsurance risk and by earning investment income on the assets it holds to support future claims payments. (1) Reinsurance underwriting: Munich Re sells reinsurance coverage to primary...
Munich Reinsurance Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presents strong financial and operating performance across multiple areas (net income, ROE, investment returns, Life & Health technical results, GSI and ERGO contributions, and a very strong solvency position). These positives are moderated by meaningful near-term reinsurance market headwinds: a EUR 2 billion reduction in reinsurance revenue guidance, rising normalized P&C combined ratios (around 82% and trending up), volume declines in July renewals (≈-9%) and reliance on favorable loss experience and markets. Management emphasizes disciplined underwriting, capital strength and diversification to manage the cycle and preserve earnings targets. On balance, the company appears well positioned but faces clear near-term top-line and P&C margin challenges that are being actively managed.Positive Updates
Strong first-half net result and ROE
Net result of EUR 3.9 billion in H1 2026 (already >60% of full-year net income guidance) and return on equity of 23%, comfortably above the Ambition 2030 target of >18%.
Negative Updates
Reduced reinsurance revenue guidance
Reinsurance insurance revenue guidance lowered by EUR 2 billion to EUR 38 billion for 2026 (from EUR 40 billion previously), driven predominantly by P&C reinsurance headwinds and disciplined underwriting decisions.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong first-half net result and ROE
Net result of EUR 3.9 billion in H1 2026 (already >60% of full-year net income guidance) and return on equity of 23%, comfortably above the Ambition 2030 target of >18%.
Read all positive updates
Company Guidance
Munich Re said it remains on track to deliver Ambition 2030 while adjusting near‑term top‑line assumptions: group H1 net result was €3.9bn (already >60% of full‑year guidance) including a Q2 net profit of €2.2bn, and H1 ROE was 23% (vs Ambition target >18%); the group lowered reinsurance revenue guidance by €2bn to €38bn (from €40bn) while keeping ERGO revenue guidance at €24bn. Key operating metrics included P&C Re Q2 combined ratio 68.9% (reserve releases ≈6pp) and a six‑month combined ratio of 67.9%, though the normalized combined ratio rose to ~82% and is expected to trend up; a large structured transaction is contributing to this shift. GSI posted a Q2 combined ratio of 88.9% (H1 86.3%) with reported H1 revenue down ~3% but organic growth near the lower end of the 5–9% Ambition range. Life & Health Re delivered €528m total technical result in Q2 and >€1bn in H1, with a CSM stock of €16bn. Investment metrics were strong: Q2 return on investment 5.5% (H1 ROI 4.2%; full‑year guide >3.5%), running yield ~4.0% and reinvestment/new‑money around 4.3%; solvency remained very strong at >300% (304% in Q2). Management stressed disciplined underwriting, capital flexibility (dividends and buybacks) and confidence in achieving medium‑term ROE and >8% average annual EPS growth.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 | 69.41B | 69.30B | 42.31B | 39.68B | 39.71B | 64.46B |
| Gross Profit | 57.08B | 69.30B | 43.69B | 41.06B | 40.76B | 53.78B |
| EBITDA | 9.52B | 9.36B | 9.41B | 7.72B | 13.16B | 4.77B |
| Net Income | 6.87B | 6.12B | 5.68B | 4.61B | 5.31B | 2.93B |
Balance Sheet | ||||||
| Total Assets | 284.93B | 279.93B | 286.51B | 273.79B | 298.57B | 312.40B |
| Cash, Cash Equivalents and Short-Term Investments | 5.82B | 5.50B | 186.64B | 8.57B | 149.71B | 171.24B |
| Total Debt | 7.39B | 7.43B | 6.32B | 4.71B | 6.45B | 6.80B |
| Total Liabilities | 251.20B | 246.51B | 253.77B | 244.02B | 277.37B | 281.46B |
| Stockholders Equity | 33.56B | 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
Positive
509.00
Price Trends
505.21
Positive
498.41
Positive
504.73
Positive
Market Momentum
2.81
Positive
53.65
Neutral
57.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MUV2, the sentiment is Positive. The current price of 509 is below the 20-day moving average (MA) of 517.66, above the 50-day MA of 505.21, and above the 200-day MA of 504.73, indicating a neutral trend. The MACD of 2.81 indicates Positive momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | €31.44B | 12.06 | 27.86% | 3.13% | 2.06% | 15.31% | |
78 Outperform | €65.85B | 9.66 | 20.59% | 4.72% | 0.06% | 38.83% | |
74 Outperform | €30.41B | 3.35 | 69.73% | 4.94% | -2.14% | 10.15% | |
57 Neutral | €1.44B | 32.38 | 5.08% | 1.62% | -2.67% | ― | |
56 Neutral | €1.32B | 10.88 | 2.45% | 4.44% | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
DE:MUV2
Munich Reinsurance
517.20
-3.34
-0.64%
DE:HNR1
Hannover Rueck
253.80
15.80
6.64%
DE:TLX
Talanx AG
122.50
7.19
6.24%
DE:WUW
Wuestenrot & Wuerttembergische
14.18
0.60
4.42%
DE:NBG6
Nuernberger Beteiligungs AG Class B
125.00
60.10
92.60%
DE:DFV
DFV Deutsche Familienversicherung AG
7.50
1.57
26.50%
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.