Munich Re, one of the world’s leading reinsurance companies, predicts that its return on equity (ROE) will reach more than 18% by the end of 2030, with earnings per share growing at an average annual rate of more than 8%. The group strives to achieve IFRS net profit of 6.3 billion euros in 2026.
Today, Munich Re announced its Ambition 2030 multi-year strategy as well as some financial targets for next year. In addition to the aforementioned ROE and annual EPS growth, Ambition 2030 also envisions a total annual payout ratio of over 80% and a solvency ratio of over 200%.
In November, when the company reported results for the first nine months of the year, Munich Re confirmed its annual guidance of €6.0 billion for 2025, thus forecasting €6.3 billion in 2026, up 5% year-on-year, although slightly below the consensus of €6.35 billion.
Munich Re said its 2026 targets reflected “consistently good operating performance across all business units”.
In addition, Munich Re expects group insurance revenue to reach 64 billion euros by 2026, higher than the consensus of 62 billion euros, with a return on investment of more than 3.5%.
Additionally, in the reinsurance space, Munich Re expects net profit to reach €5.4 billion, again above the consensus of €5.2 billion. “Munich Re will continue to leverage its strong market position amid continued favorable market conditions,” the reinsurer said.
Munich Re expects property and casualty (P&C) reinsurance combined ratios to remain strong at 80%, in line with market expectations, while the global specialty insurance unit’s combined ratio is expected to reach 90% in 2026, slightly above market expectations of 89%. In its life and health reinsurance business, Munich Re expects total technological achievements to reach €1.9 billion by 2026, in line with consensus.
At Munich Re’s main insurance arm, ERGO, the strong performance in recent years is expected to continue, with results of €900 million and therefore just shy of the €1 billion consensus. ERGO Germany’s expected combined ratio is 89%, in line with market expectations. ERGO International’s combined ratio target is also 89%, also in line with market expectations.
“As always, all forecasts and targets are subject to increased uncertainty arising from geopolitical and macroeconomic developments, significant losses remaining within normal limits, and the income statement being protected from severe currency or capital market fluctuations, significant changes in the tax environment or other one-time impacts,” the company explained.
