Munich Re
Note: This is a daily stock update and the information stands true as of 26/02/25, 09:00 CET.
Company Update:
Expert Opinion:
Momentum remains very strong for the insurance and reinsurance sector. With inflation, companies are able to pass price increase while on their investment portfolio they receive a 5% yield vs 1% a few years ago. Valuation remains attractive despite very strong sector performance and we see little reason not to be long the sector. AXA and Swiss Re are especially attractive in my view.
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Company Update:
2024 Insurance revenues were up by 5% to €60.8bn. Insurance service expenses rose by 3% to €51.5bn. The operating insurance service result was up by 16% to €8.2bn in 2024. Net financial result increased by 136% to €1.2bn for 2024.
In all, net profit attributable to shareholders (IFRS 17) is up 23% to €5.7bn, in line with consensus. RoE was 18.2% for 2024 compared to 15.8% for 2023.
The good surprise comes from the capital return: Dividend is upgraded to €20 vs €15 previously which is 21% above consensus. Furthermore, the group announced a new €2bn SBB program.
Outlook 25: Consolidated profit of around €6.0bn for the FY2025 –(€5bn in 24). Insurance revenues are expected to reach around €64bn for FY2025 compared to €60.8bn for FY2024. It is anticipated that the return on investment will amount to above 3.0%.
Expert Opinion:
Momentum remains very strong for the insurance and reinsurance sector. With inflation, companies are able to pass price increase while on their investment portfolio they receive a 5% yield vs 1% a few years ago. Valuation remains attractive despite very strong sector performance and we see little reason not to be long the sector. AXA and Swiss Re are especially attractive in my view.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.