The management board of Munich Re, one of the world’s largest reinsurers, intends to propose a dividend of $24 per share in 2025, higher than the dividend in 2024 and well above the consensus of $21.86 per share in fiscal 2025.
In addition to the dividend proposal, which the Supervisory Board will decide upon publication of final business figures for 2025, the Board of Directors has decided to purchase own shares worth up to €2.25 billion (excluding miscellaneous expenses) between April 29, 2026 and the Annual General Meeting of Shareholders on April 29, 2027.
Munich Re explained that the shares repurchased will be cancelled, while the share buyback plan still needs to be approved by the Supervisory Board Praesidium and the Sustainability Committee.
Munich Re’s board of directors approved a dividend of $15 per share in 2023, which was higher than the consensus of $12.49 that year; and the board approved a dividend of $20 per share in 2024, again higher than the consensus of $16.49 that year.
In February 2024, the reinsurance giant decided to buy back shares worth up to 1.5 billion euros between April 26, 2024 and April 30, 2025 at the Annual General Meeting, resulting in the repatriation of total company capital of 3.5 billion euros. The following year, the reinsurer decided to purchase its own shares worth no more than EUR 2 billion between April 30, 2025 and the Annual General Meeting of April 29, 2026 at the latest, bringing the total capital repatriation to EUR 4.6. One billion.
In 2025, both the dividend and the share buyback program were increased for the current financial year, the latter resulting in Munich Re’s capital repatriation reaching €5.3 billion, an increase of more than 51%, or an increase of €1.8 billion since it was announced in February 2024.
As our readers know, reinsurer profitability has been very strong following the start of the hard market in 2022/2023, with companies such as Munich Re expected to perform strongly again in 2025.
Munich Re’s higher dividends and continued growth in capital repatriation levels reflect how much excess capital there is in the reinsurance industry and also suggest that for some, returning capital is preferable to deploying excess capital.
As insurers, reinsurers and brokers noted when discussing recent January 1, 2026 renewals, given the increased competition in the space, this may be a sign that reinsurers may be struggling to find as many profitable opportunities as they have in the past.