Despite posting a record Q2 profit of €2.1 billion—a 30% surge driven by unusually low natural catastrophe costs (€20 million vs. €500 million YoY)—Münchener Rück’s shares plummeted 7% to €560, making it the DAX’s worst performer. The drop reflects investor concerns over declining reinsurance prices, with risk-adjusted rates falling 2.5% in July renewals and 1.2% year-to-date. The company slashed its 2025 revenue forecast from €64 billion to €62 billion, citing price pressures and unfavorable currency effects from a weak US dollar, which dented euro-denominated earnings.
Sector-Wide Anxiety Spreads
The downgrade triggered a sector sell-off, with rivals losing up to 4%. Analysts note that while the peak of the reinsurance cycle has passed, pricing remains "attractive," and Münchener Rück’s disciplined avoidance of unprofitable contracts (shrinking volume by 3.2%) signals prudent management. The firm maintains its €6 billion annual profit target, but market sentiment underscores broader anxieties about softening demand and macroeconomic headwinds.
Ad
Münchener Rück Stock: Buy or Sell?! New Münchener Rück Analysis from September 23 delivers the answer:
The latest Münchener Rück figures speak for themselves: Urgent action needed for Münchener Rück investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from September 23.
Münchener Rück: Buy or sell? Read more here...
