Münchener Rück AG
🇩🇪 MUV2.XETRA · Frankfurt · DE0008430026
Insurance
EUR 545.00 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
11.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 545.00 ÷ 47.15 = 11.6
TTM period through: 2025-12-31
Forward P/E (estimated): 10.8
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.6
Yield (Fwd)
4.40%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.44%
Net Debt/EBITDA (TTM)
0.2x
Latest quarter: 1.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 1.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
50.9%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 42.7%
Cash Flow Payout (TTM): 205.9%
FCF Coverage (TTM): 0.42x
ROE
18.5%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
Munich Re is a globally dominant reinsurance provider offering essential financial stability with exceptionally reliable capital management. The stock's recent pullback—driven by minor analyst concerns over AI-related risks and broader macroeconomic hesitation—creates an attractive opportunity for a company that just posted record profits and a massive dividend hike. Trading at a P/E of 11.6 with a 4.4% yield, it is worth considering for new positions as it sits securely within our optimal valuation range.
Sector Context
Munich Re is a globally dominant reinsurance company that provides risk transfer solutions to primary insurance companies, making money through premium collection and investment returns on its massive float. In the insurance sector, standard cash flow payout metrics can often appear alarming due to statutory reserve accounting and investment float fluctuations; instead, conservative debt-to-equity metrics and strong Return on Equity (ROE) are the primary indicators of a reliable dividend payer.
Temporary Opportunity Identified
The stock has retreated from its 52-week highs amid minor analyst price target trims concerning future AI cyber risks and broader macroeconomic/geopolitical hesitation, despite the company posting record 2025 net profits and significantly raising capital returns.
📊 Strategy Analysis
- • Attractive valuation with a TTM P/E of 11.56, sitting perfectly in the strategy's 8-15x sweet spot for essential financial services.
- • Exceptional capital return policy highlighted by a reliable 4.44% dividend yield, a 10-year dividend growth CAGR of 7.6%, and zero cuts over the past decade.
- • Fortress balance sheet with a low Debt/Equity ratio of 0.22 and highly profitable operations generating an 18.46% ROE.
- • Recent strategic shift to reduce unprofitable premium volume has successfully driven record earnings, supplemented by a new €2.25 billion share buyback program.
⚠ What to Watch
- • Optically poor standard Free Cash Flow coverage (0.42) and high TTM payout ratio (93.38%), though the forward payout normalizes to 50.91% and cash metrics are heavily skewed by reinsurance reserve accounting.
- • Short-term margin pressures and market skepticism cited by analysts regarding the impact of AI-driven cyber risks on property and casualty pricing.
- • Exposure to cyclical macroeconomic headwinds, including escalating geopolitical tensions and persistent inflation that can temporarily inflate claims costs.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.