Munich RE (MUV2) investor relations material

Executive summary

• Net result for H1 2026 reached €3,925m, up 23.5% year-over-year, with ROE at 23.0%, driven by strong operating performance, low major-loss expenditure in property-casualty reinsurance, and robust investment returns.

• Diversified business model with increased contributions from Life Re, Global Specialty Insurance, and ERGO, supporting sustainable earnings and offsetting P&C Reinsurance revenue decline.

• Digital transformation and branding initiatives at ERGO, including AI and internalization, drive efficiency and profitable growth.

• Disciplined underwriting led to withdrawal from unprofitable business, especially in P&C Reinsurance, and strategic portfolio optimization.

• EPS rose 27.3% to €30.89.

Financial highlights

• H1 2026 net result: €3,925m; Q2 net result: €2,211m; operating result up 14.7% to €5,025m.

• Investment result for H1 2026: €4,841m, with Q2 return on investment at 5.5% and H1 at 4.2%, supported by strong equity markets.

• Solvency II ratio at 304% as of Q2 2026; group equity increased to €33.7bn.

• Combined ratio in property-casualty reinsurance improved to 67.9% (H1), with Q2 at 68.9%; GSI combined ratio: 86.3% (H1), 88.9% (Q2); ERGO Germany: 88.4% (H1).

• Insurance revenue declined 2.1% to €29,957m, mainly due to currency effects and portfolio pruning.

Outlook and guidance

• Full-year net result guidance for 2026 maintained at €6.3bn; group insurance revenue guidance revised to €62bn (previously €64bn), and reinsurance revenue to €38bn (previously €40bn).

• Ambition 2030 targets remain: ROE >18%, EPS growth >8%, payout ratio >80%, Solvency II ratio >200%.

• Combined ratio targets for property-casualty reinsurance and specialty insurance remain at 80% and 90%, respectively.

• Guidance subject to uncertainties from geopolitical, macroeconomic, and market developments.

• ERGO revenue guidance maintained at €24bn, expecting strong H2 growth from internalization, new business, and acquisitions.