Munich Re Sticks to 2026 Profit Target of €6.3 Billion Ahead of Third-Quarter Results
Key Facts
Munich Re’s available announcement did not include an increase to its 2026 net profit target. In its first-half results statement, published on August 7, the company confirmed that it “still expects to achieve a net result of €6.3 billion for the 2026 financial year.” The guidance comes ahead of the third-quarter results, which the company has scheduled for November 12, 2026. The profit target announced in the August statement therefore remains in place in the latest guidance on net results among the available facts. Talk of an increase to the outlook after the third-quarter results is inconsistent with the company’s official reporting calendar, as the scheduled announcement has yet to take place. This leaves the €6.3 billion target at the forefront of the company’s reported financial picture until its next results.
Munich Re posted a net result of €3.925 billion in the first half of 2026, compared with €3.178 billion in the same period of 2025. The total included €2.211 billion in the second quarter, versus €2.085 billion a year earlier. The company attributed the quarter’s performance to “a very significant reduction in large-loss expenditure in property-casualty reinsurance, alongside a strong investment result.” The increase in the second-quarter result from the year-earlier period contributed to first-half results that were higher than the previous year. However, the company kept its annual net result target at €6.3 billion in its statement and did not link the figures to an upward revision of that target.
In the same guidance, the company cut its 2026 group insurance revenue forecast to €62 billion from €64 billion, and lowered its reinsurance revenue forecast to €38 billion from €40 billion. The first-half announcement thus combined an unchanged net result target with reduced revenue estimates. In the July 1 reinsurance renewals, business written fell to €2.9 billion, down 9.1%, while risk-adjusted prices declined 5.5%. The company said pricing for its portfolio remained good despite the decline. These indicators provide context for the revenue revisions and developments in the renewal market, while the annual profit target remained at its announced level.
The property-casualty reinsurance combined ratio was 68.9% in the second quarter of 2026, compared with 61.0% in the second quarter of 2025. The company said, however, that the second-quarter result benefited from lower large-loss expenditure in this business and strong investment performance. Further out, Munich Re’s 2030 strategy targets a return on equity of more than 18% and average annual growth in earnings per share of more than 8%. These ambitions remain separate from the net result guidance set for the 2026 financial year. The company also cautioned that its forecasts and targets are subject to geopolitical and macroeconomic developments, and to major losses remaining within normal ranges.
The annual comparison dates back to 2025, when Munich Re posted a net result of €6.1 billion, exceeding the company’s guidance for that year by €100 million. In December 2025, the company set a 2026 net profit target of €6.3 billion, compared with analysts’ average forecast of €6.35 billion. In May 2026, the chief financial officer said the company was on track to meet its full-year target after posting a net result of €1.714 billion in the first quarter. First-half results then showed a net result of €3.925 billion, with the annual target unchanged in the statement. On October 15, the company presented its outlook for the reinsurance and insurance market at the Baden-Baden meeting, then announced a management change on October 21, effective November 1: Thomas Blunck will take responsibility for property-casualty reinsurance in Europe and Latin America, while Clarisse Kopf will leave the management board at the end of October 31. The next financial results are due on November 12, when the company will report its third-quarter results. For the following renewal round in January, the company expects largely to maintain favorable pricing levels and improved terms.