Munich Re reported a €6,121m net result for 2025 after holding major-loss expenditure in property-casualty (P&C) reinsurance to 9.4% of net insurance revenue, below the 17% expectation, and producing a 73.5% combined ratio.
Major losses in P&C reinsurance fell to €1,627m from €2,807m in 2024. The 9.4% loss ratio compares with 15.0% a year earlier. In Q4, major losses totaled €588m, equal to 14.1% of net insurance revenue, versus 8.0% in the prior-year quarter. Man-made losses were €740m; natural catastrophe losses were €887m, down from €1,915m.
Wildfires in Los Angeles accounted for approximately €0.8bn, the largest single claims event of the year. Hurricane Melissa generated approximately €0.3bn in Q4. Figures include discounting and risk adjustment effects.
P&C reinsurance produced a net result of €3,308m, up from €3,153m. Insurance revenue declined to €17,926m from €19,487m. The normalized combined ratio was 80.1%.
Across the reinsurance segment, net income reached €5,204m, exceeding the €5.1bn full-year target and rising from €4,880m in 2024. Q4 reinsurance profit was €824m versus €887m. Insurance revenue declined to €38,731m from €40,034m, reflecting negative currency effects tied to the US dollar, the withdrawal from business not meeting return thresholds, and accounting changes without impact on net income. The total technical result rose to €7,518m from €6,688m, while the operating result increased to €7,471m from €6,955m.
Life and health (L&H) reinsurance delivered a total technical result of €1,715m, meeting its €1.7bn target, compared with €1,857m in 2024. Net income in the segment declined to €1,334m from €1,545m. Insurance revenue increased to €12,179m from €11,767m.
The board of management intends to propose a dividend of €24.00 per share for 2025, above the €21.86 consensus. The dividend is subject to approval at the Annual General Meeting. In addition, the board resolved to repurchase shares up to €2,250m between April 29, 2026 and the Annual General Meeting on April 29, 2027. Repurchased shares are to be retired. Combined with the dividend, capital repatriation totals €5.3bn.
The solvency ratio increased to 298% from 287% at December 31, 2024, exceeding the Ambition 2025 corridor of 175%–220%.
Return on equity for 2025 was 18.3%, compared with 18.2% in 2024 and above the 14%–16% target set under Ambition 2025. Earnings per share rose to €47.15 from €42.93.
The 2025 result concludes the Ambition 2025 program. Over the five-year period, return on equity increased from 11.9% to 18.3%. Earnings per share grew by an average of 18.8% annually, and dividend per share by 19.6% annually, exceeding the ≥5% annual growth target. The share of women in management positions rose from 35% to 40%.
Munich Re’s net result improved from €1.2bn in 2020 to an expected €6.0bn in 2025. During 2020–2024, the average annual increase in net income was 25 percentage points higher than that of its peer group, and total shareholder return during Ambition 2025 reached 171% as of Nov. 30, 2025.
Under Ambition 2030, the group targets return on equity above 18%, average annual EPS growth of more than 8%, a total payout ratio above 80% per year and a solvency ratio above 200% through 2030. The reinsurance field of business is expected to contribute an RoE above 18% by 2030, with insurance revenue projected at €48–57bn.
In P&C reinsurance, the combined ratio target for 2030 is 79%–83%. L&H reinsurance is expected to increase its total technical result from €1.7bn in 2025 to €2.4–€2.7bn by 2030.
Munich Re’s investment result rose to €7,514m from €7,191m. Regular income totaled €8,560m. The net impact from write-ups and write-downs was −€259m, while disposals resulted in −€375m. Fair value changes amounted to €381m. The overall investment return was 3.2%, with a running yield of 3.7% and reinvestment yield of 4.1%. The carrying amount of the portfolio stood at €222,747m at year-end.
For 2026, Munich Re targets a net result of €6.3bn and group insurance revenue of €64bn. The reinsurance segment is projected to generate €5.4bn, with combined ratio guidance of 80% for P&C and 90% for global specialty insurance. L&H reinsurance is expected to produce a total technical result of €1.9bn. ERGO is projected to contribute €0.9bn, with a combined ratio target of 89% in both ERGO Germany and ERGO International.
