bei der Katastrophenstatistik Munich Re: New Records Set for Catastrophe Statistics

Last Updated: 24. November 2023By

Financial markets are currently reacting relatively calmly to the numerous upheavals in Germany, in the EU and in the USA. The inflation rate, based on the rate of growth, is decreasing slightly, and concerns about interest rate increases are reducing. All of this apparently does not affect a company like the reinsurer Munich Re at the moment. The company continues to break records with its stock. Many of you are already in, others are waiting and weighing the options.

Munich Re: Everything Remains the Same Everything remains the same. The company will also make a lot of money this year, just as a) was expected and b) I have already announced to you. The numbers reported recently have not changed the picture.

From my point of view, the net income for the current year will overall be somewhat better than was foreseeable at the beginning of the year. In this case, net profits of over 4.5 billion euros are conceivable. Given a market value of the company (on the stock exchanges) of more than 52 billion euros, this results in a price-earnings ratio (P/E ratio) of around 11 or slightly more. The stock was already cheaper, although the profit prospects for the coming year will improve.

After all, the rising interest rate also means that Munich Re, like other insurers and reinsurers, can invest its money better than before. They simply earn more. The effect will not lead to an entirely unexpected breakout, but to a profit jump of certainly 5% to 8% – that is my personal assessment.

Premiums also increase In addition, premiums for the company’s original reinsurance business are increasing. I informed you of this over two months ago – in response to rising losses. This corresponds to the business model of Munich Re: Rising losses, including natural and „climate“ disasters, are of course socially undesirable and we are doing more to reduce them.

Reinsurance, on the other hand, will make money from these losses – because only large capital can take on the unpredictable losses and then, in anticipation of new losses due to the lack of large competition, increase premiums. From my point of view, the business is largely secure even in 2024: High premiums are almost automatically guaranteed – and investment in interest is more lucrative.

That’s why the look at 2024: The stock has already reached the highest level in the past 20 years. With increasing dividends (the dividend yield is estimated to be only 3.2% based on the current price) and new businesses, I don’t see an end to this trend. Munich Re continues to break records – WKN: 843002 – ISIN: DE0008430026 Source: