reports
- Henry Heathfield
Morningstar | Munich Re - Better ERGO Turnaround Traction
Munich Re is probably one of the most conservative and well-run reinsurance companies under our coverage. But the business is dragged down by its collection of primary insurance units, that span life and health Germany, property and casualty Germany, and International. Life and health Germany is the biggest of these three franchises, but it is also where the business has had the most problems in generating adequate returns for shareholders. We think International has had problems with keeping pr...
- Henry Heathfield
Munich Re - Better ERGO Turnaround Traction
Munich Re reported net income for the first quarter of EUR 635 million. This is slightly below our expectations and below the EUR 830 million in the comparable period a year ago. The market expects something in the region of EUR 2.5 billion for the full year. We think the sell-off after the results release is generally because the first three months are typically some of the best in terms of natural catastrophe for reinsurance businesses, and the market has been long this stock because of percei...
- Henry Heathfield
Morningstar | Munich Re's 1Q in Line; Stock Fairly Valued
Munich Re reported net income for the first quarter of EUR 635 million. This is slightly below our expectations and below the EUR 830 million in the comparable period a year ago. The market expects something in the region of EUR 2.5 billion for the full year. We think the sell-off after the results release is generally because the first three months are typically some of the best in terms of natural catastrophe for reinsurance businesses, and the market has been long this stock because of percei...
- Henry Heathfield
Munich Re's 1Q in Line; Stock Fairly Valued
Munich Re reported net income for the first quarter of EUR 635 million. This is slightly below our expectations and below the EUR 830 million in the comparable period a year ago. The market expects something in the region of EUR 2.5 billion for the full year. We think the sell-off after the results release is generally because the first three months are typically some of the best in terms of natural catastrophe for reinsurance businesses, and the market has been long this stock because of percei...
- Henry Heathfield
Morningstar | MURGY Updated Forecasts and Estimates from 12 Nov 2018
Munchener Ruckversicherungs-Gesellschaft reported a mixed set of third-quarter 2018 results. Clearly, these numbers are much more impressive than the comparable period one year ago. However, that 2017 natural catastrophe season was much more severe than we have come to be used to deal with. And while this isn’t a bad posting for the business in terms of underwriting, it is certainly by no means spectacular. Essentially, the reinsurance result came in at EUR 309 million consolidated. And we get...
- Henry Heathfield
Morningstar | Munchener Ruckversicherungs-Gesellschaft Mixed 3Q Result...
Munchener Ruckversicherungs-Gesellschaft reported a mixed set of third-quarter 2018 results. Clearly, these numbers are much more impressive than the comparable period one year ago. However, that 2017 natural catastrophe season was much more severe than we have come to be used to deal with. And while this isn’t a bad posting for the business in terms of underwriting, it is certainly by no means spectacular. Essentially, the reinsurance result came in at EUR 309 million consolidated. And we get...
- Henry Heathfield
Munchener Ruckversicherungs-Gesellschaft Mixed 3Q Results; A Quarter o...
Munchener Ruckversicherungs-Gesellschaft reported a mixed set of third-quarter 2018 results. Clearly, these numbers are much more impressive than the comparable period one year ago. However, that 2017 natural catastrophe season was much more severe than we have come to be used to deal with. And while this isn’t a bad posting for the business in terms of underwriting, it is certainly by no means spectacular. Essentially, the reinsurance result came in at EUR 309 million consolidated. And we get...
- Henry Heathfield
Morningstar | Munich Re's 1H Disappoints on Non-Technical Results; Sha...
Munich Re reported a disappointing first half of 2018, with ERGO still lagging. We maintain our EUR 205 fair value estimate and no-moat rating. The combined ratio of 102% in the second quarter is visually unappealing for what has traditionally been such a strong business. This comes down to actual claims experience, but the half combined looks much better at 95.5%. Where we differ from the market on these results is that though ERGO is still amid its turnaround and not yet delivering as expect...
- Henry Heathfield
Munich Re's 1H Disappoints on Non-Technical Results; Shares Undervalue...
Munich Re reported a disappointing first half of 2018, with ERGO still lagging. We maintain our EUR 205 fair value estimate and no-moat rating. The combined ratio of 102% in the second quarter is visually unappealing for what has traditionally been such a strong business. This comes down to actual claims experience, but the half combined looks much better at 95.5%. Where we differ from the market on these results is that though ERGO is still amid its turnaround and not yet delivering as expected...
- Henry Heathfield
Munich Re 1Q 2018: Very Little Color on Progression at ERGO
Munich Re reported first-quarter 2018 results of EUR 827 million. This is quite a good result, driven by low major-loss expenditure that we are seeing across the European reinsurance sector. The business is increasing its target combined ratio to 97% for the year, with its profit guidance of EUR 2.1 billion-EUR 2.5 billion unchanged. We retain our EUR 205 per share fair value estimate, along with our no-moat and stable moat trend ratings. These results essentially show the business to be fairly ...
- Henry Heathfield
- CFA
Munich Re Profit Significantly Dented by Natural Catastrophes; Ergo Ac...
Munich Re reported a net result of negative EUR 145 million for the first nine months of 2017 as the business' property-casualty reinsurance division was affected by the five major events of the past quarter, leading to a third-quarter loss of around EUR 1.4 billion. There has been a small positive result from Ergo, as the turnaround strategy is running well. We are increasing our fair value estimate to EUR 205 per share from EUR 168 to account for the time value of money and a rise in rates in ...
- Henry Heathfield
- CFA
Munich Re's diversification is both a blessing and a curse.
Munich Re reported net income for the second quarter of EUR 733 million and first-half profit of EUR 1,411 million, in line with our estimates. Numbers from ERGO look better, though this is essentially just a one-off tax credit. We will maintain our EUR 168 fair value estimate and no-moat rating. The property and casualty reinsurance division profit fell to EUR 517 million even though the combined ratio improved to 93.9%, ahead of our target of 96%. This figure was significantly supported by EUR...
- Henry Heathfield
- CFA
Value-Accretive Premiums Harder to Find for Munich Re in 2Q
Munich Re reported net income for the second quarter of EUR 733 million and first-half profit of EUR 1,411 million, in line with our estimates. Numbers from ERGO look better, though this is essentially just a one-off tax credit. We will maintain our EUR 168 fair value estimate and no-moat rating. The property and casualty reinsurance division profit fell to EUR 517 million even though the combined ratio improved to 93.9%, ahead of our target of 96%. This figure was significantly supported by EUR...
- Henry Heathfield
- CFA
Munich Re's diversification is both a blessing and a curse.
Munich Re reported first-quarter net income of EUR 557 million, which was slightly below our expectations, though this was largely due to higher losses than we anticipated. Though the business’s Solvency II ratio declined 24 points to 243%, this is largely as a result of the dividend payment, buyback, and bond repayment. Accounting for these, the SII was flat during the period. Overall, we think this is an encouraging result from Munich Re, and we maintain our EUR 168 fair value estimate and n...
- Henry Heathfield
Munich Re Reports Full-Year Balance Sheet Broadly in Line With Our Exp...
Munich Re reported a full-year balance sheet broadly in line with our expectations. We will maintain our fair value estimate of EUR 163 per share and no-moat rating. As we noted in February, results have been slightly ahead of our expectations, but we see nothing in this capital release to change our long-term view of the business. The business is still very well capitalised with a Solvency II ratio of 267%, as the company has held back from deploying its balance sheet further and benefits from ...
- Henry Heathfield
Munich Re Reports Steady Set of Full-Year Results
Munich Re reported full-year 2016 results slightly ahead of our expectations with restructuring costs in the ERGO primary insurance unit coming in a little better than we anticipated. Though these results are slightly above our net profit forecasts, we are holding our fair value estimate at EUR 163 per share and maintaining our no-moat rating as we prefer to see more detail on the ERGO restructuring from Marcus Reiss around the same time as the full-year results in mid-March. Net profit came in ...
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