Munich RE (MUV2) Q2 2025 earnings summary

Executive summary

• Net result for H1 2025 was €3.18bn, with return on equity at 19.7%, reflecting strong segment performance and robust investment returns, despite a 14.4% year-over-year decline due to large Q1 losses and currency effects.

• ERGO delivered strong earnings, with a return on equity of 20.5% and growth in both Germany and international markets.

• Insurance revenue rose 1.9% year-over-year to €30.6bn in H1 2025, driven by organic growth in life and health reinsurance and ERGO International, despite negative currency effects.

• Group equity fell to €30.8bn at 30 June 2025, mainly due to dividend payout and share buybacks.

• The group remains on track for its full-year net result target of €6.0bn for 2025, supported by disciplined underwriting and diversified earnings.

Financial highlights

• H1 2025 net result: €3.18bn (-14.4% year-over-year); Q2: €2.09bn (+30.2% year-over-year).

• H1 2025 insurance revenue: €30.6bn (+1.9% year-over-year); Q2: €14.8bn (-1.2% year-over-year).

• Return on equity: 19.7% (Group), 19.5% (Reinsurance), 20.5% (ERGO).

• Investment result: €3.51bn in H1 2025 (-3.4% year-over-year); return on investment: 3.0%.

• Solvency II ratio stable at 287% as of 30 June 2025.

Outlook and guidance

• 2025 net result target maintained at €6.0bn; insurance revenue guidance lowered to €62bn (previously €64bn) due to currency and business developments.

• Combined ratio targets for 2025: P&C reinsurance 79%, Global Specialty Insurance 90%, ERGO Germany 89%, ERGO International 90%.

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

• Management remains confident for H2 2025 but notes increased uncertainty from macroeconomic and geopolitical factors.

• Further earnings growth anticipated, with updated financial ambitions to be announced in December.