Munich RE (MUV2) Q2 2024 earnings summary

Executive summary

• Net result for H1 2024 reached €3,763m, up 55.2% year-over-year, with return on equity at 24.3%, reflecting strong performance across all business lines and robust growth in reinsurance and ERGO segments.

• The group is on track to exceed its full-year net result target of €5bn, supported by strong technical and investment results.

• All segments contributed positively, with less cyclical and more stable earnings from specialty and life & health reinsurance.

• ERGO delivered consistent earnings growth, particularly in international markets and life & health Germany.

• Diversification into less cyclical businesses and specialty insurance enhances earnings resilience.

Financial highlights

• H1 2024 net result: €3,763m, up from €2,211m in H1 2023; Q2 2024 net result: €1,623m.

• H1 2024 operating result: €5,139m; return on equity: 24.3% (H1 2023: 17.0%).

• H1 2024 insurance revenue: €30.0bn, up 5.5% year-over-year, driven by organic growth in reinsurance and ERGO International.

• Investment result for H1 2024: €3,633m (3.2% return), supported by higher regular income and positive fair value changes.

• Solvency II ratio at 287% as of 30 June 2024, with group equity increased to €30.7bn.

Outlook and guidance

• 2024 outlook remains unchanged, with net result target at €5.0bn and insurance revenue expected at €59bn.

• Combined ratio targets for 2024: property-casualty reinsurance at 82%, ERGO Property-casualty Germany at 87%, ERGO International at 90%.

• Return on investment expected to remain over 2.8% for the year.

• Likelihood of surpassing 2024 financial targets has increased, though caution is maintained due to the upcoming hurricane season and macroeconomic uncertainty.

• All forecasts face increased uncertainty due to macroeconomic and capital market volatility.