Munich RE (MUV2) Q1 2025 earnings summary

Executive summary

• Q1 2025 net result was €1.1bn, down from €2.1bn year-over-year, reflecting resilience amid sector volatility, major LA wildfire losses, and FX headwinds, with strong contributions from less volatile segments like Ergo and Life Re.

• Underlying technical profitability remained robust across all business lines, with earnings diversification mitigating major claims and capital market volatility.

• Return on equity was 13.3% (Q1 2024: 27.2%), with a Solvency II ratio of 285%.

Financial highlights

• Insurance revenue reached €15.8bn, up 6% year-over-year, with growth in all segments.

• Operating result was €1,465m (Q1 2024: €2,891m); investment result declined to €1,323m, mainly due to negative fair value changes and FX losses.

• Running yield was 3.5%, but ROI dropped to 2.2% due to negative fair value changes in fixed income, with currency losses of around €500m.

• Group equity stood at €33.3bn at 31 March 2025, up from €32.9bn at year-end 2024.

Outlook and guidance

• Full-year 2025 net result guidance remains at €6bn, with Q1 seen as within normal fluctuation and supported by high operating profitability.

• Reinsurance net result expected at ~€5.1bn, ERGO at ~€0.9bn; combined ratios: P&C reinsurance ~79%, GSI ~90%, ERGO Germany ~89%, ERGO International ~90%.

• Life and health total technical result targeted at ~€1.7bn.

• Insurance revenue growth targets are more challenging due to FX headwinds, but not revised yet.

• Anticipates earnings benefit from the Next Insurance acquisition, expected to close in Q3.