Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München

Munich Re reported Q2 net profit of EUR 2.2 billion and first-half net result of EUR 3.9 billion. ROE for the first half was 23%. The group said it is already above 60% of full-year net income guidance after six months. In investment, Q2 ROI was 5.5% and first-half ROI was 4.2%, versus full-year guidance of greater than 3.5%. P&C reinsurance had a Q2 combined ratio of 68.9% and 67.9% for the first half, while the normalized combined ratio was around 82% in Q2 and expected to trend up further through the year. Life & health reinsurance posted a Q2 technical result of EUR 528 million, with life CSM at EUR 16 billion. ERGO posted Q2 net result of EUR 321 million, including EUR 235 million from Germany. Guidance was reduced for reinsurance insurance revenue to EUR 38 billion from EUR 40 billion, while management said this does not change the earnings outlook for 2026. On the renewals, July volume declined by around 9% and prices fell by 5.5%, including a negative business mix effect of around one percentage point.

Christoph Jurecka struck an upbeat but disciplined tone, saying Munich Re is firmly on track to achieve its full-year targets and is heading into hurricane season with tailwind. He emphasized that the company can afford to walk away from underpriced P&C reinsurance because growth in GSI, Life Re, and ERGO is diversifying earnings and reducing dependence on the cycle. He also reiterated that the group will use capital management flexibly if needed, with Ambition 2030 targets still fully intact.

Andrew Buchanan focused on the financial strength of the quarter: Q2 net profit was EUR 2.2 billion, H1 ROI was 4.2%, and the group remains comfortably within its greater-than-3.5% full-year investment-return guidance. He said Life & Health Re’s Q2 technical result of EUR 528 million and life CSM of EUR 16 billion support future earnings, while P&C Re’s 68.9% Q2 combined ratio benefited from very low major losses but the normalized ratio rose to around 82% as recent renewals and a large structured transaction earn in. He also explained that the reinsurance revenue guide was cut to EUR 38 billion because P&C Re revenue declined by EUR 1.4 billion in H1, but stressed that this does not change the earnings outlook. On capital, he noted Solvency II rose to 304% in Q2 and the company continues to target returning excess capital via dividends and buybacks.

Analysts pushed on why reinsurance revenue guidance still implies a second-half step-up, and management said the pipeline in Life & Health and a large structured deal should help, making EUR 38 billion feel “sensible” and achievable. Questions on the rising normalized P&C Re combined ratio drew a cautious answer: management would not give an exact split between renewals and the structured deal, but said both are meaningful and the deal will continue to earn through next year. On ERGO, management pointed to NEXT Insurance internalization, the first-time consolidation of Chinese life, and the Baltic acquisition as reasons the EUR 24 billion revenue guide remains realistic. Analysts also pressed on LTC risk, the structured transaction’s size and duration, and GSI growth; management said LTC is written only when the economics fit, the structured deal is a proportional treaty with earnings expected through 2027, and GSI growth is coming from areas like HSB, continental Europe, and specialty expansion.