Münchener Rück opinion

Hello there!

I have $MUV2 (-0,8 %) on my radar and I’m considering buying at current price.

I would like to ask for your opinion about this German company as many of you here are Germans and maybe you know about it.

This is my inicial aproach at this prices (510€):

• P/E Ratio (TTM): 11.8x (Optimal range for a market leader)

• Forward Dividend Yield: 4.33% (Highly secure)

• Dividend Growth (5Y CAGR): 15.3% (Aggressive shareholder returns)

• ROE (Return on Equity): 18.5% (Exceptional profitability)

• Payout Ratio (Forward): 50.9% (Sustainable and normalized)

Strategic Strengths

• Capital Management: Massive 20% dividend hike (to €24/share) and a €2.25 billion buyback program.

• Financial Resilience: Net Debt/EBITDA of 0.2x and a Debt/Equity ratio of 0.22, providing a massive buffer against catastrophic "tail risks".

• Market Position: Acts as an "essential financial service" with stable long-term returns despite irregular short-term cash flows.

Risk Factors & "What to Watch"

• FCF Distortion: Traditional Free Cash Flow metrics are misleading in the insurance sector; Payout and ROE are better health indicators.

• Tail Risks: Vulnerability to unpredictable natural disasters or geopolitical events.

• Revenue Growth: Deliberate reduction in premium volumes to protect margins has caused temporary market skepticism.

NichtRelevant@NichtRelevant

$MUV2 is a very solid stock. It is the most valuable position in my portfolio and I am convinced that it is a very good investment in the long run.

They are the worlds largest reinsurer and they also own ERGO, a regular insurance company which is a household name over here. They also have various subsidaries like MEAG (real estate) and others. I have lived in Munich for a long time and whenever I ran across somebody who works at Munich Re (privately and businesswise) i had the impression that they really have a dedicated and professional workforce. They know what they are doing and they are good at it.

$MUV2 is a quiet company with little hype about it. In german we say 'In der Ruhe liegt die Kraft'. 🙂

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Lanre@Lanre

@NichtRelevant thank you very much for sharing your thoughts and impressions, i really appreciate it! EEUU stocks information are everywhere but I’m finding difficult to dig in this company. At this prices i find it very attractive in the long term. It will go to my portfolio for sure!

SanSebastian@WarrenamBuffet

Good choice. Nice stabile and growing Dividend stock