Munchener Ruckversicherungs-Gesellschaft AG (MURGF) Q1 2025 Earnings Call Highlights: Resilient ...

GuruFocus News

Wed, May 14, 2025, 12:04 AM 4 min read

• Net Earnings: EUR1.1 billion.

• Running Yield: 3.5%.

• Return connected Investment (ROI): 2.2% overall; 1.7% astatine ERGO, 2.9% successful reinsurance.

• Currency Losses: EUR500 cardinal owed to US dollar devaluation.

• Reinvestment Yield: Increased to 4.6%.

• Life and Health Technical Result: EUR608 million.

• LA Wildfire Losses: EUR1.1 cardinal total; EUR0.8 cardinal successful P&C reinsurance.

• Combined Ratio: 83.9% with a discount payment of astir 10%.

• April Renewals Premium Expansion: More than 6%.

• Price Decline: 2.5% overall; 1.7% excluding concern premix effects.

• Global Specialty Insurance Net Result: EUR182 cardinal successful 2024.

• ERGO Net Result: EUR241 million.

• ERGO Germany Segment Result: EUR140 million.

• ERGO International Business Net Result: EUR100 million.

• Solvency II Ratio: 285%.

• 2025 Net Result Outlook: About EUR6 billion.

• Warning! GuruFocus has detected 6 Warning Sign with MURGF.

Release Date: May 13, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Munchener Ruckversicherungs-Gesellschaft AG (MURGF) reported a resilient Q1 effect with nett net of EUR1.1 billion, demonstrating beardown diversification of net drivers.

• The beingness and wellness full method effect importantly exceeded expectations, driven by affirmative acquisition successful the US portfolio.

• The reinvestment output accrued to 4.6%, providing further enactment for an uptrend successful the moving yield.

• ERGO delivered a pleasing nett effect of EUR241 million, somewhat up of expectations, with beardown show successful Life and Health segments.

• The Solvency II ratio remained unchangeable astatine 285%, reflecting a beardown economical presumption contempt a EUR2 cardinal stock buyback.

• High ample losses, just worth changes successful concern results, and important currency movements negatively impacted nett earnings.

• The ROI was burdened by antagonistic just worth changes of fixed income instruments, peculiarly affecting ERGO with an ROI of 1.7%.

• Currency losses amounted to astir EUR500 cardinal owed to the devaluation of the US dollar.

• The combined ratio for Global Specialty Insurance (GSI) was elevated astatine 95.5% owed to large losses, including LA wildfire claims.

• The concern premix effects and an summation successful the nonaccomplishment constituent negatively impacted the basal nonaccomplishment ratio.

Q: Can you supply an outlook for the midyear renewals and your attack to measurement versus margin? A: Christoph Jurecka, CFO, explained that portion it's aboriginal days, the marketplace remains charismatic with little than a 1% terms diminution truthful far. The institution prioritizes lawsuit relationships and profitability, and decisions are made based connected discussions with clients alternatively than a top-down approach.