Münchener Rück MUV2.DE
What does Münchener Rück do?
Munich Re is one of the world's largest reinsurers and is also active as a primary insurer. The business is divided into life and health reinsurance, property and casualty reinsurance, specialty insurance (Global Specialty Insurance), and the primary insurance segments in Germany and internationally operated under the ERGO brand.
Earnings arise mainly from insurance premiums, less claims and costs, and from investments in which premiums are placed until benefits are paid out. Customers are other insurers, companies and individuals. Competitively, Munich Re belongs to the top group alongside a few other global reinsurers. Its position rests on strong capital, long-standing customer relationships, extensive risk data and modeling expertise. It also offers digital solutions for underwriting and claims handling, for example in life and health insurance.
Score profile
Rank vs. Financial Services (272 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Münchener Rück ranks in the middle in the group Financial Services (4.6/10). On growth, the company ranks in the middle in the group Financial Services (4.1/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Financial Services (5.2/10). On financial strength, Münchener Rück ranks in the middle in the group Financial Services (5.1/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 11.2x | 10.9x | better than 46 % |
| Trailing P/E | 10.8x | 12.8x | better than 74 % |
| PEG ratio | 2.0x | 1.4x | better than 25 % |
| Price/sales | 1.2x | 3.4x | better than 84 % |
| Price/book | 2.2x | 1.7x | better than 36 % |
| Revenue growth | 1.3% | 6.9% | better than 30 % |
| Earnings growth | 9.8% | 8.6% | better than 52 % |
| Gross margin | 35.4% | 26.2% | better than 58 % |
| Operating margin | 17.3% | 34.9% | better than 27 % |
| Net margin | 11.2% | 23.3% | better than 22 % |
| Return on equity | 21.3% | 13.1% | better than 79 % |
| Debt/equity | 24.4% | 17.4% | better than 46 % |
| Current ratio | 0.3x | 1.3x | better than 1 % |
| Free cash flow yield | 9.5% | 0.0% | better than 84 % |
| Dividend yield | 4.2% | 2.4% | – |
| Payout ratio | 45.0% | 31.0% | – |
| Beta | 0.27 | 0.87 | – |
Valuation: what is Münchener Rück worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Münchener Rück a model range of 442.82 EUR to 560.72 EUR per share.
16 analysts, average rating “Hold”, average price target 551.19 EUR (−4.3%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Premium volume depends on demand for risk transfer and on prices in the reinsurance market.
- The underwriting result is determined by claims experience, risk selection and cost discipline.
- Investment income depends on the interest rate environment and the performance of financial markets.
Risks
- Natural disasters and large individual losses can weigh heavily on results and are difficult to predict.
- Underestimated claims reserves, for example due to inflation or court rulings, can cause subsequent charges.
- Market value fluctuations, interest rate changes and credit defaults can impair investments and capitalization.
What to look for with Münchener Rück
The combined ratio shows whether the insurance business is profitable after claims and costs, independent of investment income.