Munich Re announced that its net result for the 2025 financial year came in above target at €6.121 billion, supported by strong performances across its property & casualty (P&C) and life & health (L&H) reinsurance segments.

The 2025 results mark the fifth consecutive year Munich Re’s annual profit exceeded guidance, up from €5.69 billion in 2024. The reinsurer reported a contribution of €5.204 billion from its reinsurance operations, above the target of €5.1 billion. Q4’25 net result decreased slightly to €945 million from €1.068 billion in Q4’24.

Segment Performance

• P&C Reinsurance: Net result increased to €3.308 billion from €3.153 billion in 2024, while the combined ratio strengthened to 73.5% from 77.3%. Major-loss expenditures fell to €1.627 billion from €2.807 billion, with natural catastrophe losses declining to €887 million, including the costly LA wildfires in January at €800 million.
• L&H Reinsurance: The technical result decreased slightly to €1.715 billion, above the target of €1.7 billion, with a net result of €1.334 billion. Insurance revenue grew to €12.179 billion.
• Global Specialty Insurance: Net result surged to €562 million from €182 million, supported by higher revenue of €8.625 billion and a combined ratio of 85.9%, aided by lower major-loss costs.
• ERGO: The primary insurance arm reported net income of €917 million, up from €810 million in 2024, exceeding the target of €900 million, on revenue growth to €21.681 billion.

Group-wide insurance revenue from insurance contracts issued remained stable at €60.412 billion, while the total technical result increased 13% to €9.8 billion. Munich Re’s investment result rose 5% to €7.514 billion, delivering a 3.2% return on average portfolio market value. Return on equity improved slightly to 18.3%, and earnings per share increased to €47.15 from €42.93 in 2024.

Reinsurance Renewals and Market Outlook

At the January 1, 2026 reinsurance renewals, Munich Re reported a 7.8% decrease in volume to €13.7 billion, reflecting the firm’s deliberate decision to avoid business not meeting return or term expectations. Overall pricing declined 2.5%, but the reinsurer maintained strong portfolio quality and terms. Looking ahead to April renewals, Munich Re anticipates sustaining attractive price levels and improved terms despite ongoing market pressure.

Capital Return to Shareholders

Munich Re plans to propose a dividend of €24 per share for 2025 and has approved a share buyback program of up to €2.25 billion.

The company targets an IFRS net result of €6.3 billion for 2026, with expected group insurance revenue of €64 billion and an improved investment return exceeding 3.5%.

“Munich Re continues to execute its strategy with discipline, balancing profitable growth, portfolio quality, and shareholder returns,” the company said in a statement.