Munich Re Raises 2026 Profit Target to 6.6 Billion Euros After Earning 5.667 Billion in 9 Months
Key Facts
Munich Re reaffirmed its 2026 net profit target at 6.6 billion euros, after raising the goal from 6.3 billion euros in its preliminary announcement on October 23. Results for the first nine months showed a net result of 5.667 billion euros, compared with 5.176 billion euros in the same period of 2025. In the third quarter alone, the company posted a net result of 1.742 billion euros, versus 1.997 billion euros a year earlier. That puts cumulative profit growth alongside a year-on-year decline in the quarterly result. Chief Financial Officer Andrew Buchanan said the higher target reflects satisfactory operating performance across business segments.
Insurance revenue in the third quarter rose to 16.626 billion euros from 14.575 billion euros in the same period last year. But operating result fell to 2.472 billion euros, versus 3.036 billion euros. For the first nine months, insurance revenue was 46.583 billion euros, compared with 45.162 billion euros. The annualized return on equity rose to 21.9% from 20.8% in the comparable period. These indicators show differing paths for revenue and quarterly results, without the company attributing the decline to cost pressures.
Munich Re attributed the year-on-year decline in the quarterly net result particularly to the exceptionally low major catastrophe losses in the third quarter of 2025. Major reinsurance losses were 646 million euros in the third quarter of 2026, equivalent to 14.9% of net insurance revenue. These losses were below the expected level of 18% of net insurance revenue. By contrast, losses in the comparable period were 118 million euros, or 2.9% of net insurance revenue. The company said good operating performance across business segments, major losses below the expected average in property-casualty reinsurance, and strong investment results in reinsurance supported the quarterly result.
The life and health reinsurance segment improved its overall technical result, which rose to 493 million euros from 314 million euros in the year-earlier quarter. The company attributed the improvement to growth in new business and a better claims experience in biometric risks, particularly mortality claims. Buchanan also described diversified earnings sources as a key element of the “Ambition 2030” strategy. He said raising the profit target to 6.6 billion euros reflects satisfactory operating performance across all business segments. The company’s results are driven by property-casualty reinsurance, life and health reinsurance, and investments.
Munich Re’s solvency ratio was 301%, compared with 298% on December 31, 2025, and remained above its Solvency 2 target of more than 200%. In its final outlook for 2026, the company lowered its forecast for the net combined ratio in property-casualty reinsurance to below 80%, from around 80%. It also expected the ratio in its global specialty insurance segment to be below 90%, instead of around 90% previously. The company left the rest of its 2026 outlook, set out in its first-half report, unchanged. In its August 7 review, it had cut its forecast for group insurance revenue to 62 billion euros from 64 billion euros, and its reinsurance revenue forecast to 38 billion euros from 40 billion euros, while keeping its net profit target at 6.3 billion euros at the time.
The preliminary announcement on October 23 had indicated a third-quarter net profit of around 1.7 billion euros, above the average estimate of 1.479 billion euros from 13 analysts, alongside an increase in the full-year profit target. The final nine-month results confirmed that the net result had risen to 5.667 billion euros and set the 2026 target at 6.6 billion euros. Munich Re is scheduled to announce its 2027 outlook on December 10, 2026. That will be the company’s next opportunity to present its direction for the coming year. The company left unchanged its other 2026 forecasts previously announced in its first-half report.