Munich RE (MUV2) CMD 2025 summary

Strategic achievements, vision, and outlook

• Ambition 2025 targets were exceeded, with net income rising from €2.9bn in 2020 to €6bn in 2025 and ROE increasing from 11.9% to around 18%, doubling previous years’ results.

• All business segments—P&C Reinsurance, Life & Health Reinsurance, Global Specialty Insurance, and ERGO—contributed to growth and stability.

• Total shareholder return reached 171% from 2021 to 2025, outperforming peers.

• Diversification, disciplined capital management, and underwriting excellence enabled resilience through macroeconomic and geopolitical challenges.

• Ambition 2030 aims to further boost net income beyond €6bn, maintain ROE above 18%, and balance financial growth with societal impact.

Financial and capital management targets

• New 2030 targets: ROE >18%, EPS growth >8% CAGR, payout ratio >80%, and Solvency II ratio >200%.

• Cost savings of €600m targeted by 2030, with €200m expected next year, counteracting inflation and supporting automation.

• Investment returns to rise, with running yields expected to exceed 3% by 2030, driven by higher reinvestment yields and alternative assets.

• Capital repatriation to shareholders will exceed 80% of net income annually, with dividend growth aligned to EPS growth.

• Solvency II target floor set at >200%, aligning with AA rating and ensuring flexibility for growth post-large events.

Business segment strategies and growth

• ERGO targets >18% ROE by 2030, focusing on market leadership in Germany, international expansion, and digital transformation.

• ERGO’s insurance revenue is projected to grow to €26–30bn by 2030, with improved combined ratios in Germany and International.

• Reinsurance aims for global leadership in P&C, strong Life & Health expansion, and GSI-driven diversification with less volatile earnings.

• Specialty insurance (GSI) will leverage market growth, disciplined underwriting, and volatility management for above-market expansion.

• Cost discipline, technology investments, and global IT harmonization are central enablers across all segments.