Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR ( (MURGY) ) has released its Q4 earnings. Here is a breakdown of the information Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR presented to its investors.
Munich Re, a global leader in reinsurance and primary insurance, has reported a strong financial performance for the 2024 fiscal year, surpassing its profit target for the fourth consecutive year. The company achieved a net result of €5.7 billion, exceeding its initial guidance by €700 million, and announced a record dividend of €20 per share, subject to shareholder approval. Additionally, Munich Re plans a new share buy-back program with a volume of €2 billion to be completed by 2026.
Key financial metrics for 2024 include a return on equity of 18.2%, earnings per share of €42.78, and a solvency ratio of 287%. The reinsurance segment contributed significantly to the net result, with a profit of €4.88 billion, driven by strong performance in both life and health and property-casualty reinsurance. The ERGO business segment also met its profit target, posting a net result of €791 million. Investment results were robust, with a substantial increase to €7.19 billion, benefiting from higher interest rates and positive trends in equity markets.
Munich Re’s diversified business portfolio and prudent reserving practices have bolstered its financial strength, allowing it to navigate major claims and capital market risks effectively. Despite challenges such as increased major-loss expenditure due to natural catastrophes, the company maintained a strong combined ratio and continued to capitalize on attractive business opportunities.
Looking ahead, Munich Re aims to achieve a net profit of €6 billion in 2025, with expected insurance revenue of €64 billion and a return on investment exceeding 3.0%. The company remains confident in its ability to leverage its strong market position and maintain profitability, despite potential uncertainties in geopolitical and macroeconomic conditions.