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Munchener Ruckversicherungs-Gesellschaft AG ADR MURGY

Morningstar Rating
$46.08 −0.44 (0.95%)
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Company Report

Munich Re Earnings: Strong Results on Better Technical Performance in Life and Health

We think Munich Re has reported a very solid set of results for 2023, delivering EUR 33.88 in EPS. The company has raised the dividend to EUR 15 per share. Both these numbers are ahead of our estimates of EUR 30.31 and EUR 12.12 respectively for EPS and dividends per share. They are also ahead of company-compiled consensus of EUR 33.6 and EUR 12.6 in EPS and DPS respectively. Overall, Munich Re has delivered EUR 4.600 billion in net income, outperforming guidance by EUR 600 million that it set at the beginning of the year. The firm has also announced a new buyback of EUR 1.500 billion to be completed by the annual general meeting next year. It also raised guidance to an expectation of EUR 5.000 billion in net income for 2024. The results on Feb. 27 mean that Munich Re has delivered a 15.7% return on equity to shareholders and economic profits for the second consecutive year.

Price vs Fair Value

MURGY is trading at a 20% premium.
Price
$46.08
Fair Value
$23.70
Uncertainty
Medium
1-Star Price
$42.23
5-Star Price
$54.78
Economic Moat
Pdfc
Capital Allocation
Sgdhkjn

Bulls Say, Bears Say

Bulls

Munich has a unique Global Specialty Insurance division that has foundations in combining industrial machinery inspection services with insurance. This has created unique underwriting benefits.

Bears

Despite the successful turnaround of Munich’s primary insurance division, Ergo, this is quite a capital-intensive division because of its exposure to market risk and that has pulled down Munich’s overall returns.

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News

Trading Information

Previous Close Price
$46.52
Day Range
$46.0046.32
52-Week Range
$31.8446.93
Bid/Ask
$45.85 / $46.49
Market Cap
$62.73 Bil
Volume/Avg
51,071 / 35,238

Key Statistics

Price/Earnings (Normalized)
12.02
Price/Sales
0.93
Dividend Yield (Trailing)
2.76%
Dividend Yield (Forward)
2.76%
Total Yield
3.47%

Company Profile

Munich Re was founded in 1880 by Carl Thieme amid a flurry of other reinsurance companies set up independent of primaries. In those early days, most reinsurers typically focussed on a few customers with strong reputations. Thieme focussed on a broader set of cedents in order to drive stronger growth in premiums. This coincided with a strategy of risk diversification and a preference to partner rather than take on a one-sided transfer of risk. In the 1890s, Munich introduced the first machinery insurance. After Thieme and Fink founded Allianz, this was the main channel to sell insurance on machinery. We think the approach of partnering with insurers and preferring to avoid one-sided risk, in conjunction with combining inspection and insurance services, remains at the heart of the firm.
Sector
Financial Services
Industry
Insurance - Reinsurance
Stock Style Box
Large Core
Total Number of Employees
42,562

Competitors

Valuation

Metric
MURGY
SREN
HNR1
Price/Earnings (Normalized)
12.026.6414.77
Price/Book Value
2.152.692.98
Price/Sales
0.930.721.09
Price/Cash Flow
34.3420.4815.22
Price/Earnings
MURGY
SREN
HNR1

Financial Strength

Metric
MURGY
SREN
HNR1
Quick Ratio
Current Ratio
Interest Coverage
14.384.8815.78
Quick Ratio
No chart available

Profitability

Metric
MURGY
SREN
HNR1
Return on Assets (Normalized)
1.03%1.01%2.24%
Return on Equity (Normalized)
11.44%13.21%18.60%
Return on Invested Capital (Normalized)
10.00%6.47%13.71%
Return on Assets
MURGY
SREN
HNR1
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Insurance - Reinsurance Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
MURGF
Munchener Ruckversicherungs-Gesellschaft AGVhgjk$62.5 Bil
SSREF
Swiss Re AGFsr$34.7 Bil
SSREY
Swiss Re AG ADRLbhn$34.7 Bil
HVRRF
Hannover Rueck SEGqq$30.9 Bil
HVRRY
Hannover Rueck SE ADRNcjp$30.9 Bil
EG
Everest Group LtdBkhd$16.1 Bil
RNR
RenaissanceRe Holdings LtdLpmyv$11.8 Bil
RGA
Reinsurance Group of America IncZzpc$11.6 Bil
SCRYY
SCOR SE ADRWrp$5.0 Bil

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