Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (MURGY)
NEUTRALFundamental
77
Price
$518.60
Market Cap
$64.67B
Part 1 · What the company is worth
Overview
Munich Re takes on risk that other insurers do not want to carry alone. As a reinsurer, it agrees to cover a share of the claims a primary insurer might face from earthquakes, hurricanes, life and health claims and other large exposures, in exchange for a share of the premium. Through its ERGO subsidiary, it also sells insurance policies directly to households and businesses, mainly in Europe and Asia.
How it makes money
Revenue is the premium collected for agreeing to take on risk, whether from another insurer (reinsurance) or directly from a policyholder (ERGO). Profit comes from two sources: an underwriting result, when premiums collected exceed claims paid and expenses, and investment income earned on the funds held between collecting a premium and eventually paying claims. Both depend on pricing risk accurately, which is the core skill of the business.
Revenue by segment
Property-casualty, life and health risk assumed from other insurers worldwide; the larger and more volatile of the two businesses.
Insurance policies sold directly to retail and commercial customers, mainly in Germany and other European and Asian markets.
Competitive moat
Scale · NarrowUnderwriting catastrophe and life risk well requires decades of loss data, capital strong enough to survive a very bad year, and pricing discipline, which keeps the reinsurance market concentrated among a handful of large global players. The advantage is real but not exclusive: Swiss Re, Hannover Re and others compete on the same basis for the same large ceding companies.
What drives demand
CyclicalReinsurance pricing moves in multi-year hard and soft cycles driven by recent loss experience rather than by GDP: after a run of large catastrophe losses, prices and terms harden industry-wide, and they soften again once capital rebuilds and competition returns.
Key risks
- Natural catastrophe and climate risk — Insurance risk, mainly property-casualty underwriting risk, makes up around 60% of the group's regulatory capital requirement. Global natural-disaster losses reached about $224 billion in 2025, of which insurers covered roughly $108 billion, and Munich Re carries a direct share of that exposure.
- Market risk on the investment portfolio — Premiums held between collection and claims payment are invested in bonds and other assets, so swings in interest rates and capital markets affect both investment income and the value of reserves held against future claims.
- Credit and counterparty risk — The group is exposed to the risk that ceding companies, retrocessionaires or bond issuers in its investment portfolio fail to meet their obligations, one of the risk categories tracked under its Solvency II capital model.
The case for
Buyers argue that rising natural-catastrophe losses are pushing the whole reinsurance market toward firmer pricing and stricter terms, that Munich Re's scale and underwriting discipline let it selectively write the most attractively priced business, and that a fifth straight year of exceeding profit guidance shows the model working through the cycle.
The case against
Sellers fear that climate change is making catastrophe losses larger and less predictable than historical models assume, that a prolonged period of soft pricing could follow the current hard market as competitors rebuild capital, and that a sharp move in interest rates could hurt the investment portfolio at the same time claims are rising.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$63.95B
Trailing 12 months (through 6/30/2026)
Net Income
$6.87B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$6.89B
Total Equity
$33.56B
Total Liabilities
$8.22B
Current Ratio
0.28
Interest Coverage
-
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$1318.41
Current Price
$518.60
Margin of Safety
+60.7%
Fair Value Range
$856.97 - $1779.86
Estimation Methods
Valuation Metrics
P/E Ratio
9.56
ROE
21.3%
P/B Ratio
1.93
P/FCF
9.39
Gross Margin
35.4%
ROIC
20.2%
Profitability Radar
Value Creation (Economic Moat)
ROIC
20.2%
WACC
7.1%
ROIC − WACC
+13.1 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (15)
- Price CAGR 11.51%
- ROIC 20.2%
- Gross Margin 35.4%
- P/FCF 9.39
- P/B Ratio 1.93
- Debt/Equity ratio
- Positive Free Cash Flow
- CapEx intensity
- DCF valuation (Undervalued)
- ROE 20.6%
- Analyst Consensus 50% Buy
- Earnings Surprise avg 4.9%
- PEG Ratio 0.24
- Earnings Quality (OCF/NI) 1.08
- Net Margin Trend 8.5% vs 7.8%
Failed (3)
- Current Ratio
- Revenue Growth 5Y -0.2%
- Piotroski F-Score 2/9
Unavailable (9)
- EPS data insufficient
- Dividend Payout NaN%
- Operating Margin NaN%
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Dr. Christoph Jurecka | CEO & Chairman of Management Board | 51 |
| Dr. Thomas Blunck | Member of Management Board | 60 |
| Dr. Markus Riess | Head of Economics, Sustainability & Public Affairs and Member of Management Board | 59 |
| Ms. Mari-Lizette Malherbe | Member of Management Board | - |
| Mr. Nicholas J. Gartside C.F.A. | Chief Investment Officer & Member of Management Board | 50 |
| Dr. Achim Kassow | Chief Transformation Officer & Member of Management Board | 59 |
| Mr. Stefan Heinrich Golling | Member of Management Board & Labour Relations Director | 48 |
| Ms. Clarisse Kopff | Member of Management Board | - |
| Mr. Michael Kerner | Member of Management Board | - |
| Mr. Andrew James Buchanan | CFO & Member of Management Board | 46 |
Audit Risk
2
Board Risk
4
Compensation Risk
2
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for MURGY, sourced from Markets Gazette.