Munich RE (MUV2) Q4 2024 earnings summary

Executive summary

• Net income for 2024 reached €5.7 billion, exceeding guidance for the fourth consecutive year, driven by strong performance and investment returns across all segments.

• Dividend per share proposed at €20, a 33% increase and a record high, with a €2 billion share buyback planned until the next AGM.

• Ambition 2025 targets have been met or exceeded, with group ROE at 18.2% and EPS growth well above cost of capital.

• Solvency II ratio stands at 287%, well above the optimal range, providing strategic flexibility.

• Resilience supported by diversification, prudent reserving, and capital repatriation, with 85% of net earnings returned over the last decade.

Financial highlights

• Group net income of €5.7 billion, up from €4.6 billion year-over-year, with economic earnings of €9.3 billion.

• Investment return improved to 3.1%, with reinvestment yield at 4.2% and running yield at 3.5%.

• ERGO insurance revenue: €20.8 billion; net result: €791 million.

• Reinsurance insurance revenue: €40.1 billion; net result: €4.88 billion.

• Equity at year-end was €32.7 billion, up from €29.8 billion.

Outlook and guidance

• Net income target for 2025 set at €6 billion, with group insurance revenue expected at €64 billion.

• ERGO: insurance revenue ~€22 billion, net result ~€0.9 billion; Reinsurance: insurance revenue ~€42 billion, net result ~€5.1 billion.

• Combined ratio guidance: P&C reinsurance at 79%, GSI at 90%, ERGO Germany at 90%, International at 89%.

• Return on investment expected to remain above 3.0%.

• All forecasts subject to uncertainties from geopolitical, macroeconomic, and market factors.