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Munich re Entry

Does anyone know why Munich Re is so low right now?

There is no growth left from last year.

I'm thinking about taking the plunge. But as I've already fallen into the trap a few times, I'm still waiting to see if the €500 mark holds

11 Commentaires

Investējošais K.@Wuestenschiff

And now let's take another look at the "Max" chart and see that the stock is not low at all and everything is good...

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PositivePossum@PositivePossum

@Wuestenschiff I see it differently and it's not always that simple. While the broad equity market has performed well in the recent past, it is a legitimate question as to why such a defensive stock is down 10% at the same time.

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NichtRelevant@NichtRelevant

@PositivePossum I think that the stock had performed above average for a while before the 10% price reduction.

There have been a lot of articles in the press recently about premiums rising less sharply. This - together with skepticism about the new CEO - has in my opinion led to the underperformance of the share price.

Nevertheless, I consider $MUV2 to be an extremely solid company and the business model continues to work very well. As an investor, I am therefore relaxed about Munich Re.

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Saarmupfel@Saarmupfel

Hi, this may have something to do with the fact that, in my naive world, reinsurers are influenced by the "normal insurers", who are usually negotiating contracts with corporate clients... In addition, Morgan Stanley is probably keeping a more critical eye on insurers in general as far as valuations are concerned. At least that's my personal feeling... I don't think there's anything fundamentally wrong, but I also have to say that I have no idea about anything :-)

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Smudo@Smudeo

Cost savings of up to 600 million euros are to be realized by 2030. In addition to age-related staff reductions, the management is focusing on automation and the targeted use of AI to increase productivity and economies of scale.

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Olli@Olli68

Something to keep in mind. Good opportunity. 👍
PS: To answer your question about the reasons a bit. @Liebesspieler wrote a great post today that might help a bit as an answer here.

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Tigerhansab@Tigerhansab

Added to this are the low interest rate expectations and the fact that $MUV2
has billions in bonds to hedge the risks.
However, I may also add to my holdings below €500

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NichtRelevant@NichtRelevant

I had to sell a few shares in $MUV2 due to liquidity requirements, which I realized at prices of around EUR 550. In about 4 weeks I will receive a return of funds and would then like to replenish the position to its original size. I would be very happy if the share price stays like this for the next few weeks.

In general, I think $MUV2 is an absolutely solid basic investment and the share is my largest single share, even in its current reduced strength.

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Stefan@Asgard19

Insurance premiums are probably falling and dividends are expected to rise this year, but the share buy-back program is not as strong, and negative insurers have already presented their quarterly figures as well $ORI

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BeachPlease@BeachPlease

Until your apology at the end, it sounded coherent

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Saarmupfel@Saarmupfel

@BeachPlease Yes, I wanted to be honest...
which doesn't mean that the logic is wrong, but I didn't look at everything in the 2 minutes in the middle of the night

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