Munich RE (MUV2) Q4 2025 earnings summary

Executive summary

• Net earnings for 2025 rose to €6.1bn, surpassing guidance for the fifth consecutive year and exceeding all Ambition 2025 financial and non-financial targets, driven by disciplined underwriting, strong investment returns, and robust segment performance.

• Return on Equity reached 18.3%, more than doubling over five years, with dividend per share growth outpacing earnings per share growth.

• Shareholders will receive a 20% higher dividend (€24/share) and a €2.25bn share buyback, returning nearly 90% of earnings.

• Diversified earnings from Life Re, Global Specialty Insurance (GSI), and ERGO now nearly match P&C Reinsurance, supporting earnings stability and reducing cyclicality.

• All non-financial targets, including diversity and decarbonisation, were met or exceeded.

Financial highlights

• IFRS net result: €6,121m (up from €5,690m in 2024); HGB result: €5.5bn; Q4 net result: €945m.

• Solvency II ratio increased to 298%, reflecting strong capitalisation and lower capital requirements.

• Group insurance revenue was €60.4bn, with investment result at €7.5bn and return on investment at 3.2%.

• Combined ratio for P&C reinsurance: 73.5% headline, 77.3% reported, 80.1% normalized; GSI: 85.9%; ERGO Germany: 88.9%; ERGO International: 91.9%.

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

Outlook and guidance

• 2026 net income projected at €6.3bn, with group insurance revenue forecasted at €64bn and continued strong ROE above 18%.

• Earnings growth expected from less cyclical segments (Life & Health Re, GSI, ERGO), while P&C Reinsurance faces a more competitive environment.

• EPS CAGR of more than 8% targeted, with payout ratio above 80% and Solvency II ratio above 200%.

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

• Ambition 2030 strategy aims to further diversify and expand the business portfolio.