3J·

Way too cheap.

$MUV2 (-1,1 %) - Stone me if you must, but I think Munich Re is currently significantly undervalued. You really have to let the numbers sink in (assuming the figures on GQ are correct): P/E ratio = 8.61; Dividend yield = 5.22% with a payout ratio of 46%; It’s 33% below its all-time high.

The business model is non-cyclical, not dependent on supply chains, and so far there have been no disputes regarding any tariffs or levies on insurance claims.

If Munich Re weren’t already my largest single holding and I weren’t worried that buying more would dilute my entry price—I’d buy even more of it.

24 Commentaires

Smudo@Smudeo

3 Reasons:
First, the pricing cycle is turning. After seven years of sometimes sharply rising prices—from 2018 to 2024—reinsurance prices are softening, and the years of very strong profits are likely to have peaked. This affects not only Munich Re: All companies in the industry are being valued more cautiously overall. In the key January contract renewals for property and casualty business, the Munich-based company has had to accept price declines of 0.6% and 2.4% in the past two years. Premium volume also fell because the group no longer accepted every contract under the new terms.

Second, the strong euro is having a noticeable negative impact on earnings. Since Munich Re generates a significant portion of its business in U.S. dollars, the appreciation of the euro is correspondingly depressing reported premiums and profits. This is because the euro appreciated from around $1.03 at the start of 2025 to $1.15 to $1.20 in the first quarter of 2026—an increase of about 15 to 17%.

Third, concerns are growing about the upcoming storm season: 27 named storms are expected in the Western Pacific, including 18 typhoons.

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NichtRelevant@NichtRelevant

@Smudeo The price cycle thing is true—but I think it’s pretty much always been that way. At some point, premiums always go through a consolidation phase. Maybe there will be a few major claims that dampen things for a year or two. After that, though, premiums will go up again because of those very large claims, etc.—in my opinion, that’s not really scary or unusual. Especially if you plan to hold the stock for the long term.

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jkb92@jkb92

@Smudeo You can always find reasons for a technical correction ;)

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GiCi@GiCi

@jkb92 nope, the point is that you should always find reasons. Why is the share -33% from ATH? If the answer is: "The market is dumb, I know the truth", you're already making a huge mistake. So, again it is not about the fact that you can always find reasons. I would rephrase it as: "you should always find reasons...". As such, I really appreciate the post from @Smudeo .

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Johnny B.@JBatelli

I feel the same way. I already bought more shares in early May. A little too early, unfortunately. If Munich Re stays where it is or drops a bit more, I’ll buy some more. But for now, I’ll just wait and see.

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minkz@minkz

I'm still waiting; technically, it should come back down again. I just hope I'm not waiting in vain 😂

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jkb92@jkb92

@minkz Yeah, I’ve heard that in several places too. It’s reacted nicely to the 200-day EMA for now, and if market conditions stay this rough, that would obviously be good for the stock… we’ll see. Otherwise, I’ll buy more at a lower price.

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jkb92@jkb92

I agree with you; the only reason it could still keep falling is based on technical analysis. That said, a glance at the long-term chart shows that buying the stock around the 200-day EMA has never been a bad move so far. That’s why I added a bit to my position a few days ago.

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capital_captain_2693@capital_captain_2693

What do you think of Hannover Rück?

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NichtRelevant@NichtRelevant

@capital_captain_2693 Hannover Re is also very interesting.

Both currently have attractive valuations and operate in the same industry. Munich Re is the market leader, while Hannover Re has a slightly leaner structure and may therefore be a bit more dynamic.

I’d say it’s a gut decision.

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FinanzKeks@ImmoHai

Isn't Hannover Re more attractive from a growth perspective?

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NichtRelevant@NichtRelevant

@ImmoHai Hannover Re is also worth considering.

Both companies currently have attractive valuations and operate in the same industry. Munich Re is the market leader, while Hannover Re has a slightly leaner structure and may therefore be a bit more dynamic.

I’d say it’s a gut decision. 😉

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NichtRelevant@NichtRelevant

@ImmoHai P.S.: As an "ImmoHai," you'd obviously have to invest in real estate—or at least in REITs or Vonovia—in addition to Hannover Re. 😏

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FinanzKeks@ImmoHai

@NichtRelevant I get what you're saying 😉 I call myself that because of my training. But you definitely don't want companies like Vonovia in your portfolio, especially from a technical analysis perspective

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Max Z.@max233

I'm very happy with my decision to invest in Hannover Re through a savings plan.

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Thorsten@silverbug999

Make additional weekly contributions to the savings plan of less than €500 using other dividends

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Paulchen@Divident_e

@silverbug999 doesn't make sense

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Thorsten@silverbug999

@Divident_e It's all relative. It makes sense to me.

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fund_navigator_elshq@fund_navigator_elshq

There’s nothing wrong with acting countercyclically; while everyone else is focused on SpaceX, you can quietly snap up the undervalued companies.

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Poor Dad@PoorDad

My fingers are already itching to click the "Buy" button, but I think I'll wait until the price stabilizes 🧐

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Kini - Dividend Strategy@investron

I agree, the lower it gets the more I buy

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Kini - Dividend Strategy@investron

My database shows similar numbers, I believe they are correct

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Daniel Kaufmann@Wollitz

I still think MüRü is a very good company, but nature is unpredictable. No one can say for sure how severe or how frequent environmental disasters will be. I was invested for a while, but I switched from MüRü to Allianz. I still think MüRü isn’t a bad investment. I just didn’t like that the premiums and rates have become more lenient. That’s why I’ve stepped back for now. I still wish you much success and good luck with MüRü. Best regards

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BKI@BKI

Absolutely. We've now invested nearly €4 million.

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