Münchener Rückversicherungs-gesellschaft Aktiengesellschaft Stock Earnings Reports

Munich Re reported a strong operating quarter with a Q1 net result of EUR 1.7bn. Underwriting across Reinsurance (P&C and L&H), Global Specialty and ERGO was broadly healthy with benign major-loss experience: P&C reinsurance posted a normalized combined ratio of 80.3% (Q1 combined ratio 66.8%), Life & Health reinsurance delivered a EUR 500m technical result, and ERGO produced a EUR 235m net result. Investment performance was weaker than guidance (return on investments 2.9%) due to market volatility and negative fair-value moves in bonds and equities, but management increased the reinvestment yield to 4.2% and highlighted diversification benefits in alternatives and commodities. Management expects a Q2 catch-up on running yield (inflation-linked bonds, PE distributions, dividends) and sees upside from disposals/fair-value normalization. Underwriting discipline remains firm: April renewals featured an 18.5% reduction in renewed treaty volume to protect portfolio quality; the group increased its outlier (large-loss) allowance to 18% (14.5% nat-cat / 3.5% man-made). Solvency II remains strong at 292%. The 2026 outlook is unchanged with a net-result target of EUR 6.3bn, but achieving the reinsurance revenue target of EUR 40bn is now more challenging (management cites some one-off negative premium adjustments in Q1, a healthy deal pipeline, and life & health transaction opportunities). Capital-return philosophy remains intact (targeting high payout), with share-buybacks decided annually and returns calibrated to opportunities and distributable earnings.