Munich Re (OTCPK:MURG.F) 2025 Earnings Call Presentation

Ambition 2025 Achievements and Future Targets - Munich Re exceeded its Ambition 2025 targets, achieving a Return on Equity (RoE) of approximately 18% in 2025, surpassing the initial target of 14-16%[5, 6, 32] - The company's total shareholder return from January 2021 to November 2025 was 171%[14] - Munich Re aims for a RoE greater than 18%, EPS growth greater than 8%, and a total payout ratio greater than 80% under Ambition 2030[45, 50] - The company targets a Solvency II ratio greater than 200% under Ambition 2030[45, 50] Financial Strategy and Ambition 2030 - Munich Re plans to improve profitability by seizing profitable growth opportunities, enhancing yield through active investment management, improving cost efficiency, and further increasing capital return[32] - The company expects annual primary cost savings of approximately €200 million to €600 million from 2026 to 2030 through cost-saving initiatives[54, 55] - Munich Re intends to gradually increase debt leverage towards a level of approximately 15% to improve capital efficiency without jeopardizing its target rating[71, 76] - The company introduces a new Solvency II ratio target with a lower bound of 200%, replacing the previous optimal range of 175-220%[79] Business Segment Outlook - ERGO aims for a combined ratio of 87-89% in Germany and 86-88% internationally by 2030[159] - Reinsurance targets a combined ratio of 79-83% for P&C and a total technical result of €24 billion-€27 billion for L&H by 2030[53] - GSI (Global Specialty Insurance) aims for a combined ratio of 87-90% by 2030[53] Climate and DEI Ambitions - Munich Re aims to achieve net-zero emissions by 2050 for its investments and (re)insurance businesses[36] - The company plans to reduce emissions intensity in investments by 12-20% by 2030[36] - Munich Re is committed to phasing out thermal coal investments and insurance by 2040[36]