Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München

Munich Re reported 1H 2026 net result of EUR 3.9 billion and Q2 net profit of EUR 2.2 billion. Return on equity was 23% in the first half, and the group said it was already above 60% of full-year net income guidance. The investment result was strong, with Q2 return on investment at 5.5% and 1H ROI at 4.2%; the reinvestment yield was 4.3% and the running yield was 4.0%. In reinsurance, the life and health technical result was EUR 528 million in Q2 and the stock of life CSM reached EUR 16 billion. P&C Re reported a Q2 combined ratio of 68.9% and a 1H combined ratio of 67.9%; the normalized combined ratio was around 82% in Q2 and expected to trend upward. GSI reported a Q2 combined ratio of 88.9% and 1H combined ratio of 86.3%. ERGO posted a Q2 net result of EUR 321 million, including EUR 235 million from ERGO Germany, and Solvency II rose to 304%. For 2026, Munich Re lowered reinsurance insurance revenue guidance by EUR 2 billion to EUR 38 billion, while saying this does not affect the earnings outlook. The company also said the new revenue forecast implies a stronger second half than first half.

Christoph Jurecka framed the quarter as evidence that Munich Re is “firmly on track” for its full-year targets and said the group is operating from a position of strength despite a softer P&C reinsurance market. He emphasized diversification, noting that growth in GSI, Life Re, and ERGO more than offsets P&C Re revenue declines on a currency-adjusted basis. His tone was confident but disciplined: Munich Re is willing to walk away from business that does not meet profitability requirements, and management repeatedly described revenue guidance as directional rather than a hard target.

Andrew Buchanan said the quarter benefited from a benign major loss environment and supportive capital markets, but he stressed the underlying business performance remained strong across segments. He highlighted Q2 ROI of 5.5%, 1H ROI of 4.2%, reinvestment yield of 4.3%, and running yield of 4.0%, while noting the 4.3% reinvestment yield will likely fluctuate quarter to quarter. On P&C Re, he said the Q2 normalized combined ratio rose to around 82% because of earned-in renewals and a large structured transaction that also lifted the headline combined ratio; he added the deal should continue earning through 2027. He also said Solvency II stood at 304% and that the higher capital position supports ongoing shareholder returns.

Analysts focused heavily on the lower reinsurance revenue guide, the higher P&C Re normalized combined ratio, and whether Munich Re would need to use capital management more aggressively to support EPS growth. Management said the EUR 38 billion reinsurance revenue guide was set after reviewing the pipeline and is a “sensible, reasonable, and achievable” number, with Life & Health transactions and the structured deal helping offset weaker P&C Re volume. On P&C Re, Andrew Buchanan said he could not break out the exact impact of renewals versus the structured deal, but the deal materially lifted the normalized combined ratio and will keep flowing through next year. On ERGO, management pointed to NEXT Insurance internalization, the inclusion of the Chinese life business, and the Baltics acquisition as reasons the EUR 24 billion revenue target still looks realistic.