Munich RE (MUV2) Q4 2025 (Media) earnings summary

Executive summary

• Achieved record net earnings of €6.1bn in 2025, surpassing guidance and all Ambition 2025 targets for the fifth consecutive year, driven by robust underwriting, investment results, and strong performance across all segments.

• Highly diversified business model with increasing contributions from less cyclical segments, supporting resilience and earnings growth.

• Substantial capital returns to shareholders, including a 20% dividend increase to €24 per share and a €2.25bn share buy-back program.

• Entering Ambition 2030 with robust financials, strategic flexibility, and a focus on further diversification and expansion.

Financial highlights

• Net earnings rose to €6.1bn (up from €5.7bn), with ROE at 18.3% and Solvency II ratio at 298%, reflecting strong capitalisation.

• Dividend per share proposed at €24 for 2025, with a total payout ratio of 87%.

• Share buy-back and dividend payout totaled €5.3bn.

• Investment result benefited from higher interest rates and active management, with running yield at 3.5%–3.7% and reinvestment yield at 4.1%.

• Insurance revenue stable at €60.4bn, with a minor miss to guidance due to currency effects and portfolio management.

Outlook and guidance

• 2026 net income target set at €6.3bn, with group insurance revenue forecasted at €64bn and ROI expected to exceed 3.5%.

• Combined ratio targets: P&C reinsurance at 80%, Global Specialty Insurance at 90%, ERGO Germany and International at 89%.

• Ambition 2030 targets include ROE above 18%, EPS CAGR above 8%, payout ratio above 80%, and Solvency II ratio above 200%.

• Dividend per share proposed to increase by 20% for 2025, continuing a long record of dividend growth.