Munich RE share: Profit forecast for 2024 convinces.

Last Updated: 8. Januar 2024By

Munich RE stock broke the 400 euro mark for the first time in mid-December and set a new all-time high towards the end of the year. While there was a correction in the stock following this, the outlook for the newly started 2024 stock market year is very promising.

This is due to the profit forecast released a few weeks ago for the current year, which is quite impressive. Thanks to higher prices, Munich RE expects a significant increase in net profit. As a result, the stock remains interesting for medium and long-term investors, despite its strong performance over the past 18 months.

Munich RE: This is what the world’s largest reinsurer expects in 2024 In October, Munich RE raised its forecast for the 2023 fiscal year. Instead of the previously targeted 4 billion euros, the reinsurer now expects a profit of 4.5 billion euros. The new forecast was received very positively, although the move was not particularly surprising. Even the new forecast appears cautious in light of a profit of 3.6 billion euros after 9 months.

For the current year 2024, the world’s largest reinsurer once again expects significant profit growth: Net income is expected to reach 5 billion euros this year – an increase of around 11 percent compared to the forecast for 2023. The prospects of higher prices and „continuously good operational performance,“ as the company puts it, are the reasons for the optimistic outlook. Insurance revenue is estimated at 59 billion euros for 2024.

Munich RE stock remains a top performer The reinsurance business is booming. Even at the global number 3 – Hannover Re – there is great confidence for the coming year. Munich RE, as the industry leader, is particularly well positioned and the company’s stock has already shown strong performance in recent times.

Since mid-2022, the reinsurer’s stock has gained around 75 percent and has continued to reach new all-time highs. While this may lead to short-term setbacks, expensive major losses can always disrupt planning for reinsurers.

However, in the medium and long term, the chances still outweigh the risks. The Munich RE stock is still not too expensive in terms of profit growth and is an exciting addition to a long-term portfolio.