Analyst Note| Henry Heathfield, CFA |
Munich Reinsurance has posted a net profit for full-year 2020 of EUR 1.211 billion. That’s a little below our estimate of EUR 1.225 billion. Management has proposed a EUR 9.8 per-share dividend that is subject to approval. On the Feb. 25 share price that’s a rough 410-basis-point yield. Management has outlined there will be no buyback in the coming 12 months at the moment. We had felt there would be a resumption here and thus we have removed this from our 2021 estimates. The stated dividend is however, a little higher than we anticipated. These two counter in terms of fair value estimate impact. We think the shares are broadly fairly valued and maintain our EUR 260.0 fair value estimate. We also maintain our no moat rating.