Munich Reinsurance Company (DE:MUV2)
XETRA:MUV2
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Munich Reinsurance
(XETRA:MUV2)
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Rating:78Outperform
Price Target:
€644.00
▲(14.02% Upside)
Action:ReiteratedDate:04/20/26
The score is driven primarily by strong underlying profitability and capital strength, supported by an attractive valuation (low P/E and solid dividend). Technicals indicate a healthy uptrend but somewhat stretched momentum, while earnings-call takeaways are positive overall but tempered by renewal-driven top-line pressure and deliberate reserving actions that can limit near-term upside.
Positive Factors
Capital Strength & Profitability
Sustained mid‑teens-plus ROE and an almost 300% Solvency II ratio provide durable financial flexibility. This capital buffer supports risk retention, competitive pricing during cycles, and the ability to absorb large losses while maintaining underwriting capacity and long-term strategic initiatives.
Negative Factors
Top-line Pressure & Renewal Trends
Sustained renewal price declines and material volume contraction risk flattening the premium base and slowing revenue CAGR targets. Durable top‑line pressure forces reliance on margin improvements or portfolio actions to sustain earnings growth, and may constrain long‑term organic expansion if the trend persists.
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Positive Factors
Negative Factors
Capital Strength & Profitability
Sustained mid‑teens-plus ROE and an almost 300% Solvency II ratio provide durable financial flexibility. This capital buffer supports risk retention, competitive pricing during cycles, and the ability to absorb large losses while maintaining underwriting capacity and long-term strategic initiatives.
Read all positive factors
Munich Reinsurance (MUV2) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€64.86B
Dividend Yield3.56%
Average Volume (3M)271.59K
Price to Earnings (P/E)11.9
Beta (1Y)0.77
Revenue Growth0.25%
EPS Growth10.72%
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
€601.39Price Target Upside6.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)50.2
Revenue Forecast (FY)€65.33B
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presents a largely positive strategic and financial story: strong profitability (EUR 6.1bn net earnings), high ROE (~18%), robust solvency (~298%), meaningful shareholder distributions (20% dividend increase and EUR 2.25bn buybacks), and solid segment performances (GSI, Life & Health Re, ERGO). Headline strengths are tempered by top-line pressure (revenue missed guidance by ~EUR 3bn), renewal-driven volume declines (~-7.8%) and deliberate near-term reserve and disposal actions that reduced immediacy of some earnings. On balance the company emphasizes disciplined underwriting, conservative reserving and long-term capital deployment, with management framing short-term hits as intentional investments in resilience and future returns.Positive Updates
Record Net Earnings and EPS Growth
Net earnings rose almost 8% year-on-year to EUR 6.1 billion for FY2025, exceeding the EUR 6.0 billion target and supporting continued EPS growth (management expects an EPS CAGR of >8% going forward).
Negative Updates
Top-line Miss vs Guidance
Group insurance revenue missed the initial guidance of EUR 64 billion by about EUR 3 billion (mainly due to FX headwinds, premium adjustments/NDIC effects and active portfolio pruning, concentrated in P&C reinsurance).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Net Earnings and EPS Growth
Net earnings rose almost 8% year-on-year to EUR 6.1 billion for FY2025, exceeding the EUR 6.0 billion target and supporting continued EPS growth (management expects an EPS CAGR of >8% going forward).
Read all positive updates
Company Guidance
Munich Re reiterated concrete 2026 guidance and capital plans: group net income is projected at about EUR 6.3 billion (after FY‑2025 net earnings of EUR 6.1 billion), with a reinsurance business‑field revenue ambition of ~EUR 40 billion; the Solvency II ratio remains very strong (c.298% at year‑end 2025, “well above 200%” going forward), HGB distributable earnings exceed EUR 10 billion, and management expects an EPS CAGR of >8% and an ROE above 18% as Ambition 2030 starts. Capital returns stay generous — dividend per share up 20% to EUR 24 and share buybacks of EUR 2.25 billion (together returning almost 90% of earnings; stated payout intent >80%, this year ~87%) — while segment and performance targets include GSI organic CAGR 5–9%, Life & Health Re growth 8–12% (total technical result expected to rise >10% to EUR 1.9bn), a group ROI of ~3.2% for 2025 (Q4 2.8%) with active management contributing >30 bps, reinvestment yield ~3.8% (running yield in P&C ~4.1%), P&C Re headline combined ratio 73.5% (normalized ~80.1%; reserve releases 5.0% FY, 1.8% in Q4), GSI combined ratio 85.9% and ERGO combined ratio ~89%.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
Positive
564.80
Price Trends
538.42
Positive
536.84
Positive
544.12
Positive
Market Momentum
7.84
Negative
66.09
Neutral
91.82
Negative
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 564.8 is above the 20-day moving average (MA) of 541.11, above the 50-day MA of 538.42, and above the 200-day MA of 544.12, indicating a bullish trend. The MACD of 7.84 indicates Negative momentum. The RSI at 66.09 is Neutral, neither overbought nor oversold. The STOCH value of 91.82 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | €64.86B | 11.92 | 18.94% | 3.56% | 0.25% | 10.72% | |
74 Outperform | €31.06B | 12.16 | 21.53% | 3.37% | 0.25% | 13.43% | |
74 Outperform | €28.63B | 11.85 | 19.71% | 2.37% | 2.89% | 25.44% | |
67 Neutral | €1.38B | 31.27 | 5.08% | 0.12% | -2.67% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | €1.39B | 11.26 | 2.43% | 4.49% | ― | ― |
* General Sector Average
DE:MUV2
Munich Reinsurance
510.80
-57.08
-10.05%
DE:HNR1
Hannover Rueck
257.60
-23.92
-8.50%
DE:TLX
Talanx AG
110.90
7.92
7.69%
DE:WUW
Wuestenrot & Wuerttembergische
14.84
0.90
6.46%
DE:NBG6
Nuernberger Beteiligungs AG Class B
120.00
76.52
175.99%
DE:DFV
DFV Deutsche Familienversicherung AG
7.00
0.80
12.90%
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.