Munich RE (MUV2) Q4 2025 earnings summary

Executive summary

• Net earnings for 2025 rose to €6.1 billion, surpassing guidance for the fifth consecutive year and exceeding all Ambition 2025 financial and non-financial targets, including RoE, EPS, DPS growth, and Solvency II ratio.

• Return on equity reached 18.3%, well above cost of capital and industry peers.

• Dividend per share increased by 20% to €24, with a new €2.25 billion share buy-back program to be completed by the 2027 AGM.

• Nearly 90% of earnings will be returned to shareholders, reflecting a strong capital position and diversified earnings.

• Diversified business model with increasing contributions from less cyclical segments, supporting earnings stability and future growth ambitions.

Financial highlights

• Net earnings: €6.1 billion, up 8% year-over-year; IFRS net result: €6,121m (up from €5,690m in 2024); HGB result: €5.5 billion.

• Solvency II ratio increased to 298%, reflecting strong capitalisation and operating performance.

• Return on investment for 2025 was 3.2%, above guidance; investment result rose to €7,514m.

• Combined ratio in P&C Reinsurance improved to 73.5%; GSI at 85.9%; ERGO Germany at 88.9%; ERGO International at 90.0%.

• Share buy-backs and dividends totaled €5.3bn in 2025.

Outlook and guidance

• 2026 net income projected at €6.3 billion, with group insurance revenue forecasted at €64 billion and continued focus on less cyclical segments for growth.

• Expected earnings per share CAGR above 8% and ROE above 18% for Ambition 2030; payout ratio to remain above 80%.

• Dividend growth expected to align more closely with EPS growth in future years.

• Reinsurance segment result targeted at €5.4bn; combined ratio to remain at 80% in property-casualty and 90% in GSI.

• Revenue guidance for reinsurance business field targets €40 billion, with GSI and Life & Health Re as main growth drivers.