Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR (MURGY) AI Stock Analysis

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Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR

(OTC:MURGY)

Rating:71Outperform

Price Target:

$14.50

▲(11.28%Upside)

Munchener Ruckversicherungs-Gesellschaft's overall score is driven by its strong financial stability and profitability. Technical indicators show a mild upward trend without significant momentum, and the valuation is reasonable with a decent dividend yield. The lack of earnings call data and corporate events does not affect the score significantly.

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR (MURGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$84.84B

Dividend Yield3.54%

Average Volume (3M)12.62K

Price to Earnings (P/E)14.1

Beta (1Y)0.30

Revenue Growth6.69%

EPS Growth26.23%

CountryUS

Employees44,224

SectorFinancial

Sector Strength74

IndustryInsurance - Reinsurance

Share Statistics

EPS (TTM)0.19

Shares Outstanding6,532,254,000

10 Day Avg. Volume0

30 Day Avg. Volume12,615

Financial Highlights & Ratios

PEG Ratio0.01

Price to Book (P/B)0.04

Price to Sales (P/S)0.00

P/FCF Ratio-0.05

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR 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 primarily generates revenue through its reinsurance and primary insurance operations. In the reinsurance sector, the company earns premiums by providing insurance for insurers, thus allowing them to manage risk and capital more effectively. Munich Re underwrites a variety of reinsurance products, such as life and health reinsurance, property and casualty reinsurance, and specialty coverages. In addition to reinsurance, Munich Re's primary insurance business, conducted through subsidiaries like ERGO Group, offers direct insurance products to end customers, generating premium income. Furthermore, Munich Re invests the premiums it collects, managing a substantial portfolio of assets. Investment income from these assets, including interest, dividends, and capital gains, forms another significant revenue stream for the company. Key partnerships with other insurers and a broad global presence enhance Munich Re's ability to diversify risk and optimize its earnings.

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q3-2024)

% Change Since: 0.93%|

Next Earnings Date:Aug 08, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong overall performance with significant ROE and investment results. Life reinsurance showed exceptional results, and the Solvency II ratio improved. However, natural catastrophes and specific challenges in international segments like ERGO and Spanish health business impacted results. Overall, positive developments slightly outweigh the challenges.

Q3-2024 Updates

Positive Updates

Strong Group ROE

The group's Return on Equity (ROE) was 20% after 9 months, well above the target.

Life Reinsurance Success

Life & Health reinsurance surpassed initial full year guidance by almost EUR 200 million after 9 months.

Positive Investment Return

Munich Re posted a Return on Investment (ROI) of 3.6% for Q3, supported by rising stock markets and lower bond yields.

Solvency II Ratio Improvement

The Solvency II ratio slightly increased to 292% in Q3, driven by good operating performance.

Increased Full Year Profit Guidance

Munich Re expects net profit to exceed the full year target of EUR 5 billion, driven by higher earnings in reinsurance.

Negative Updates

Impact of Natural Catastrophes

The net result of EUR 930 million in Q3 was impacted by above-average major losses from natural catastrophes.

Elevated Combined Ratio in P&C Reinsurance

The combined ratio in Property Casualty reinsurance was 90.5% in Q3, elevated due to above-average major claims.

ERGO International Losses

ERGO International was affected by major losses related to Storm Boris, impacting the total technical result by minus EUR 52 million.

Spanish Health Business Challenges

Unfavorable claims development in the Spanish health business led to an elevated combined ratio of 96.1%.

Company Guidance

During the Q3 2024 earnings call, Munich Re provided detailed guidance on its financial performance and outlook. The company achieved a net result of EUR 930 million for the quarter, impacted by significant natural catastrophe losses. Despite this, the group maintained strong overall profitability with a 20% ROE over nine months. The investment return was robust, with an ROI of 3.6% in Q3, supported by positive fair value changes. The life and health reinsurance segment exceeded initial full-year guidance by nearly EUR 200 million, while the property and casualty reinsurance segment reported a normalized combined ratio of 80.4% after nine months, better than the 82% guidance. ERGO's net result was EUR 164 million, with the international segment affected by Storm Boris. The Solvency II ratio slightly increased to 292%, reflecting a strong economic position. Looking ahead, Munich Re expects higher revenues and net profit for the full year, with combined ratio targets adjusted due to various factors, including Hurricane Milton's expected lower impact compared to Helene. The company remains committed to maintaining a prudent reserve strategy and optimizing capital returns.

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR Financial Statement Overview

Summary

Munchener Ruckversicherungs-Gesellschaft exhibits strong profitability and a stable balance sheet with low leverage, allowing for strategic flexibility. The income statement shows profitability improvements, but with inconsistent revenue growth, suggesting potential market challenges. Cash flow statements indicate strong operational cash generation but highlight volatility in free cash flow growth due to fluctuating investments and income. The company is financially sound, with opportunities to stabilize revenue streams and enhance cash flow predictability.

Income Statement

Positive

The company has shown a stable gross profit margin over the years, with a noticeable net profit margin improvement to 13.75% in 2024. However, the revenue has been volatile, declining significantly from 2022 to 2023, but stabilizing in 2024. The EBIT margin was weak due to zero EBIT reported in 2024, but the EBITDA margin improved to 20.46% due to cost restructuring. Overall, profitability is strong, but revenue consistency needs attention.

Balance Sheet

Positive

The balance sheet displays strong equity, with an equity ratio of 11.39% in 2024, indicating solid financial footing. The debt-to-equity ratio is low at 0.19, showcasing minimal leverage risk. Return on equity increased to 17.41% in 2024, reflecting effective use of equity to generate profits. The company's balance sheet reflects stability and low risk, with effective capital management.

Cash Flow

Positive

Operating cash flow has been positive, reflecting good cash generation from core activities, but there was a decline in 2024 compared to previous years. Free cash flow improved in 2024, indicating efficient capital expenditure management. However, the free cash flow growth rate is volatile due to fluctuating net income and capital expenditures. Overall, cash flow management is solid, but there are fluctuations in free cash flow growth.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
63.34B	41.36B	60.09B	68.45B	63.86B	58.64B
	Gross Profit
61.34B	41.36B	64.73B	68.45B	63.86B	58.64B
	EBIT
6.66B	7.76B	365.00M	4.30B	2.41B	1.54B
	EBITDA
408.00M	8.46B	-244.00M	4.30B	128.00M	1.54B
	Net Income Common Stockholders
5.47B	5.68B	4.61B	3.43B	2.93B	1.21B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.05B	183.48B	8.57B	149.71B	171.24B	164.44B
	Total Assets
275.70B	286.51B	273.79B	298.57B	312.40B	297.95B
	Total Debt
4.78B	6.32B	4.71B	6.45B	6.80B	6.74B
	Net Debt
-1.28B	205.00M	-882.00M	-2.87B	-1.98B	-2.31B
	Total Liabilities
4.78B	253.77B	244.02B	277.37B	281.46B	267.95B
	Stockholders Equity
31.11B	32.64B	29.65B	21.06B	30.83B	29.89B
Cash Flow		Free Cash Flow
0.00	2.83B	2.20B	-18.32B	5.23B	7.22B
	Operating Cash Flow
0.00	3.14B	2.54B	-7.64B	5.23B	7.22B
	Investing Cash Flow
0.00	-505.00M	-329.00M	11.35B	-3.82B	-6.13B
	Financing Cash Flow
0.00	-2.23B	-2.98B	-2.70B	-1.68B	-323.00M

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price13.03

Price Trends

50DMA

12.97

Positive

100DMA

12.22

Positive

200DMA

11.26

Positive

Market Momentum

MACD

>-0.01

Positive

RSI

51.11

Neutral

STOCH

27.26

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MURGY, the sentiment is Positive. The current price of 13.03 is above the 20-day moving average (MA) of 13.02, above the 50-day MA of 12.97, and above the 200-day MA of 11.26, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 27.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MURGY.

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNR	82 Outperform	$12.05B	7.88	16.30%	0.65%	32.10%	-30.52%
RGA	76 Outperform	$13.09B	16.74	7.60%	1.81%	1.47%	-7.47%
AON	75 Outperform	$75.59B	29.83	74.17%	0.84%	19.57%	-8.09%
EG	71 Outperform	$14.23B	16.88	6.12%	2.39%	12.81%	-70.56%
MURGY	71 Outperform	$84.84B	14.08	18.47%	3.54%	6.69%	26.23%
AJG	68 Neutral	$81.01B	48.66	9.27%	0.82%	14.07%	31.44%
Sector *	64 Neutral	$12.87B	9.76	7.85%	78.04%	12.07%	-7.94%

* Financial Sector Average

Performance Comparison

MURGY

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR

13.03

3.27

33.50%

AON

Aon

350.04

55.14

18.70%

AJG

Arthur J Gallagher & Co

316.33

53.75

20.47%

Everest Group

339.13

-32.93

-8.85%

RGA

Reinsurance Group

198.10

-6.05

-2.96%

RNR

Renaissancere Holdings

247.65

23.13

10.30%

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.