Global reinsurer Munich Re’s net performance for fiscal 2025 exceeded its target, reaching 6.121 billion euros, of which reinsurance business contributed 5.204 billion euros, with property and casualty (P&C) and life and health (L&H) businesses performing strongly during the year.
2025 marked the fifth consecutive year that Munich Re’s annual profit exceeded respective guidance, exceeding €6.1 billion, an improvement from €5.69 billion in 2024, while net profit fell to €945 million in Q4’25 from €1.068 billion in Q4’24.
Group-wide, insurance revenue from insurance contracts issued in 2025 was stable at €60.412 billion. Munich Re highlighted growth in the L&H Reinsurance segment and its main insurance arm ERGO, which largely offset the deliberate discontinuation of the property and casualty reinsurance business and the negative currency impact.
Munich Re’s return on equity increased from 18.2% in 2024 to 18.3% in 2025, and earnings per share totaled 47.15 euros, up from 42.93 euros in the previous year.
In 2025, total technological results increased by 13% to 9.8 billion euros, and investment results increased by 5% year-on-year to 7.514 billion euros.
In reinsurance, net income increased from €4.88 billion in 2024 to €5.204 billion in 2025, above the target of €5.1 billion. In the fourth quarter of 2025, net profit fell to 824 million euros from 887 million euros in the same period last year.
In 2025, insurance revenue from insurance contracts issued fell to 38.731 billion euros, compared with 40.034 billion euros in 2024. Munich Re attributed the decline to negative currency effects, mainly related to the U.S. dollar, the deliberate termination of operations that no longer meet return requirements, and changes in accounting practices that did not affect the final results.
Munich Re’s Property & Casualty Reinsurance unit net profit rose to €3.308 billion in 2025 from €3.153 billion in 2024, as insurance revenue from insurance contracts issued fell to €17.926 billion, compared with €19.487 billion a year earlier. The segment’s combined ratio increased from 77.3% to 73.5%, with a normalized combined ratio of 80.1%.
In P&C reinsurance, major loss expenses before tax after retrocession fell from €2.807 billion in 2024 to €1.627 billion in 2025 and increased from €377 million in the quarter to €558 million. Man-made losses totaled 740 million euros, and natural disaster losses totaled 887 million euros, both down year-on-year. The Los Angeles wildfires in January caused losses of 800 million euros and were the reinsurer’s most expensive single claim event this year.
Total technical results for L&H’s reinsurance business fell from €1.857 billion to €1.715 billion in 2025, but were above the €1.7 billion target. The division’s net profit fell to 1.334 billion euros from 1.545 billion euros, while insurance revenue from insurance contracts issued increased to 12.179 billion euros.
In 2025, the net profit of the global specialty insurance segment was 562 million euros, a significant increase from 182 million euros in the previous year. Insurance revenue from insurance contracts issued increased to 8.625 billion euros. Driven by the decline in major loss costs, the combined ratio increased to 85.9%.
In addition to the results for the 2025 financial year, the reinsurer also provided an update on reinsurance renewal experience as of January 1, 2026, showing a 7.8% decline in underwriting volume to €13.7 billion.
“Munich Re has deliberately chosen not to renew or write business that did not meet expectations in terms of return requirements or terms and conditions. The majority of business in January was written in Europe, the United States and globally. With rare exceptions, Munich Re has maintained the high quality of its portfolio with stable contract terms and conditions,” the company explained.
Overall, Munich Re’s prices fell by 1.1% at renewal in 2026, although the reinsurer said price levels across its portfolio remained good. “Our prices largely compensate for higher loss estimates in certain regions, which are primarily attributable to inflation or other loss trends,” the company said.
Looking ahead to April renewals, Munich Re expects that attractive price levels and improved terms and conditions will largely be maintained despite current market pressures.
Returning to the airline’s results, ERGO’s performance was strong, with net profit of 917 million euros in 2025, up from 810 million euros in the previous year and once again above the target of 900 million euros. Insurance revenue from insurance contracts issued will increase from €20.796 billion in 2024 to €21.681 billion in 2025.
In 2025, Munich Re’s investment performance reached 7.514 billion euros, up from 7.191 billion euros in the previous year, and regular investment income increased to 8.56 billion euros. The investment results for 2025 represent a return of 3.2% on the average market capitalization of the portfolio.
Announced in December 2025, Munich Re’s IFRS net profit target for fiscal year 2026 is 6.3 billion euros, group insurance revenue is expected to reach 64 billion euros, and the return on investment is expected to increase to more than 3.5%.
Yesterday, the reinsurer revealed plans to pay a dividend of $24 per share in 2025, while the board also decided to purchase its own shares worth up to €2.25 billion.
