Munich Re’s €1.71 Billion Quarter and 292% Solvency Leave Investors Unimpressed as Stock Hits Low
Veröffentlicht: 14.05.2026 um 22:22 Uhr, Redaktion boerse-global.de
Munich Re has reported a first-quarter net profit of €1.71 billion and a solvency ratio of 292%, yet its shares are trading barely above a fresh 52-week low of €467.80. The disconnect between the group’s operational power and its market performance has rarely been wider.
The solvency figure far surpasses the internal target of 200%, giving the reinsurer ample capacity to return cash to shareholders. On Thursday, the company launched a new tranche of its buyback programme worth €900 million, part of a full-year plan to repurchase up to €2.25 billion of its own shares.
Insider buying has accompanied the stock’s slide. Board member Stefan Golling recently acquired shares at an average price of around €476, and Dr. Markus Rieß made a similar purchase. Such moves are often interpreted as a vote of confidence from management in the group’s prospects.
The broader insurance sector has been delivering strong numbers. Rival Allianz posted a record first-quarter operating profit of €4.5 billion, beating analyst estimates, while British insurer Aviva saw its general insurance gross premiums climb 19%. Despite that tailwind, Munich Re’s stock has dropped roughly 15% since the start of the year and lost 16% in the past month alone.
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Part of the market’s wariness may stem from the group’s deliberate strategy to shrink premium volume. Under the motto “Value over Volume”, Munich Re passed on unprofitable contracts during the April renewal season, cutting its business volume by 18.5% to around €2 billion. The payoff came in the form of an excellent combined ratio of 66.8% in property and casualty reinsurance, helped by an unusually low burden from large losses of just €130 million.
Analyst Maximilian Berger described the stock as a stability anchor in the current environment and noted a chart pattern known as an “expansion breakdown” that could signal a turn higher. However, he cautioned that the share price must first defend the area around €468 to establish a sustainable bottom.
Chief Financial Officer Andrew Buchanan affirmed the group’s medium-term target of €6.3 billion in net profit by 2026, insisting the first-quarter result keeps it on track.
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A bright spot is the investment portfolio. The group’s investment income contributed roughly €1.68 billion in the first quarter, and the yield on new investments has risen to about 4.2%. If that trend persists, it should help offset any future pricing pressure in the core reinsurance business.
All eyes now turn to the upcoming renewal rounds to see whether Munich Re can convert the industry’s strong momentum into premium growth without sacrificing discipline. For the moment, the fortress balance sheet has not been enough to lift the stock off the floor.
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