Munich Re targets €6.3bn profit in 2026 and ROE above 18% by end of 2030

Munich Re, one of the world’s leading reinsurance companies, expects its return on equity (ROE) to land above 18% and earnings per share to grow annually by over 8% on average by the end of 2030, with the Group pursuing and IFRS net profit of €6.3 billion in 2026.

Today, Munich Re has announced its Ambition 2030 multi-year strategy, alongside some financial targets for next year. As well as the aforementioned ROE and annual earnings per share growth, Ambition 2030 also envisages a total payout ratio of more than 80% per year, and a solvency ratio above 200%.

In November, when the firm reported its results for the first nine months of the year, Munich Re confirmed its €6 billion annual guidance for 2025, so the €6.3 billion forecasted for 2026 is an increase of 5% year-on-year, although slightly below the consensus of €6.35 billion.

Munich Re says that its target for 2026 is a reflection of “consistently good operational performance in all business segments.”

Also, for 2026, Munich Re expects Group insurance revenue to hit €64 billion, above the consensus of €62 billion, and a return on investment of more than 3.5%.

Further, in the reinsurance segment, Munich Re expects that net profit will reach €5.4 billion, again above the consensus of €5.2 billion. “In an ongoing favourable market environment, Munich Re will continue to leverage its strong market position,” says the reinsurer.

Munich Re expects that the property and casualty (P&C) reinsurance combined ratio will remain strong at 80%, in line with consensus, while the Global Specialty Insurance arm’s combined ratio is expected to hit 90% in 2026, slightly above the consensus of 89%. In the life and health reinsurance business, Munich Re projects a total technical result of €1.9 billion in 2026, which is in line with consensus.

At ERGO, Munich Re’s primary insurance division, the strong performance of recent years is expected to persist with a result of €900 million, so only slightly down on the €1 billion consensus. A combined ratio of 89%, in line with consensus, is forecasted at ERGO Germany, and ERGO International will also target a combined ratio of 89%, again in line with consensus.

“As usual, all forecasts and targets are subject to increased uncertainties stemming from geopolitical and macroeconomic developments, to major losses remaining within normal bounds, and to the income statement not being impacted by severe fluctuations in the currency or capital markets, significant changes in the tax environment, or other one-off effects,” explains the firm.