Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München Q1 Earnings Call Highlights

• Property and Casualty Reinsurance achieved a combined ratio of 66.8%, well below the 80% full-year guidance, driven by a major loss ratio of only 3.5% (versus 18% expected for the year)
• Investment return of 2.9% fell short of the 3.5% guidance due to bond and equity market volatility from inflation concerns, though reinvestment yield improved to 4.2%
• Solvency II ratio declined to 292% from 298% at year-end, while P&C reinsurance revenue guidance of EUR 40 billion is now 'more challenging' to achieve after a 19.8% revenue decline in Q1

Munich Re Q1 2026 Earnings Summary

Key Financial Results

Munich Re (ETR: MUV2) reported a strong Q1 2026 net result of EUR 1.7 billion, achieving a 19.7% return on equity. The company reaffirmed its full-year 2026 profit target of EUR 6.3 billion, with Q1 results exceeding proportional quarterly expectations.

Capital and Investment Performance

IFRS equity increased by over EUR 1 billion to EUR 34.6 billion, though the Solvency II ratio declined slightly from 298% to 292%. Investment results totaled EUR 1.7 billion (2.9% ROI), below the 3.5% annual guidance due to market volatility from rising oil prices and inflation concerns. Total investments reached EUR 238 billion at quarter-end, with reinvestment yield improving to 4.2%.

Segment Performance

ERGO: Delivered EUR 235 million net result, on track for EUR 900 million annual target. ERGO Germany contributed EUR 157 million with a strong 86.7% P&C combined ratio, while ERGO International added EUR 78 million.

Life & Health Reinsurance: Generated EUR 500 million technical result, slightly above pro rata target, with contractual service margin increasing EUR 500 million.

Property & Casualty Reinsurance: Insurance revenue fell 19.8% to EUR 3.9 billion due to currency effects and portfolio pruning. Combined ratio of 66.8% significantly beat 80% guidance, supported by an exceptionally low 3.5% major loss ratio. April renewals saw 18.5% volume reduction to maintain quality, with risk-adjusted pricing declining 3.1%.

Outlook

CFO Andrew Buchanan acknowledged revenue guidance of EUR 40 billion has become "more challenging" but remains achievable, with expected acceleration in large deal activity through year-end.