# Munich Re
**Munich Re** (Münchener Rück) is a German reinsurance group founded in Munich in 1880 and, by gross premiums written, one of the world's largest reinsurers: it insures insurance companies, absorbing portions of the risks that primary insurers and other reinsurers cede to it.[1](https://ideas.repec.org/p/lmu/muenec/11336.html) • [2](https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/investor-relations/munich-re-equity-story.pdf/_jcr_content/renditions/original.media_file.download_attachment.file/munich-re-equity-story.pdf) The group also writes primary insurance through its ERGO subsidiary, and in the 2025 financial year reported insurance revenue of €60,412m and a net result of €6,121m.[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf)
| Key fact | Detail |
|---|---|
| Founded | 1880 in Munich; among the world's leading insurance companies from its start[1](https://ideas.repec.org/p/lmu/muenec/11336.html) |
| Scale (FY2025) | Insurance revenue €60,412m; net result €6,121m; investments €222.7bn; equity €33.4bn; 43,982 staff[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf) • [2](https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/investor-relations/munich-re-equity-story.pdf/_jcr_content/renditions/original.media_file.download_attachment.file/munich-re-equity-story.pdf) |
| Solvency II ratio | 298% at end-2025 (287% end-2024), against a target corridor of 175–220%[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf) • [2](https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/investor-relations/munich-re-equity-story.pdf/_jcr_content/renditions/original.media_file.download_attachment.file/munich-re-equity-story.pdf) |
| Market rank | Second in 2024 gross reinsurance premiums written at US$42.8bn, behind Swiss Re (43.1) and ahead of Hannover Re (37.7)[2](https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/investor-relations/munich-re-equity-story.pdf/_jcr_content/renditions/original.media_file.download_attachment.file/munich-re-equity-story.pdf) |
| Combined ratio | Reinsurance property-casualty 73.5% in 2025, improved from 77.3% in 2024[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf) |
| Reported results (2025) | Technical result €9,800m; investment result €7,514m[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf) |
| Shareholder payout | Proposed dividend of €24.00 per share for 2025, up 20% from €20.00[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf) |
## What a reinsurer does, and the retrocession layer
A reinsurer sells insurance to insurance companies and other reinsurers. When a primary insurer such as an ERGO company or a national carrier writes property or casualty policies, it can cede part of each risk, or a whole portfolio, to a reinsurer like Munich Re in exchange for part of the premium.
For 2026, Munich Re placed US$600m of traditional catastrophe excess-of-loss (CatXL) retrocession cover. The company stated that the placement benefited from a favorable marketplace, allowing it to reshape its retrocession panel toward higher stability.[2](https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/investor-relations/munich-re-equity-story.pdf/_jcr_content/renditions/original.media_file.download_attachment.file/munich-re-equity-story.pdf)
## By the numbers
Insurance revenue was €60,412m, down 0.7% from €60,830m, while the net result rose 7.6% to €6,121m from a restated €5,690m. Investments stood at €222.7bn and equity at €33.4bn, with a group return on equity of 18.3%.[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf) [Earnings per share](https://www.edgepedia.org/earnings-per-share) rose to €47.15 from €42.93, and the proposed dividend rose 20% to €24.00 per share.[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf)
**Profit beyond underwriting.** The total technical result was €9,800m, up 12.6%, while the investment result was €7,514m, up 4.5%.[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf) The investment result of €7,514m shows that a substantial share of the group's profit comes from investments rather than underwriting alone.[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf)
**Capital strength.** The Solvency II ratio, which measures eligible own funds against the regulatory capital requirement, has risen every year from 227% in 2021 to 260%, 267%, 287%, and 298% at end-2025, well above the company's own target corridor of 175–220%; eligible own funds were €54.4bn.[2](https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/investor-relations/munich-re-equity-story.pdf/_jcr_content/renditions/original.media_file.download_attachment.file/munich-re-equity-story.pdf)
## ERGO, the primary-insurance arm
ERGO is Munich Re's primary insurance segment, selling policies directly to households and businesses. In 2025 it earned a 15.1% return on equity, against 19.1% for the reinsurance segment.[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf) Its underwriting ran less profitably than the group's reinsurance book: ERGO Property-casualty Germany posted a combined ratio of 88.9% and ERGO International 90.0%, compared with 73.5% for reinsurance property-casualty and 85.9% for Global Specialty Insurance.[3](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf)
## Comparison with Swiss Re, Hannover Re and the market
On 2024 gross reinsurance premiums written, [Swiss Re](https://www.edgepedia.org/swiss-re) ranked first at US$43.1bn, Munich Re second at US$42.8bn, Hannover Re third at US$37.7bn, ahead of Berkshire Hathaway Re (US$26.9bn), Lloyd's (US$23.5bn), and SCOR (US$20.8bn).[2](https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/investor-relations/munich-re-equity-story.pdf/_jcr_content/renditions/original.media_file.download_attachment.file/munich-re-equity-story.pdf) AM Best's separate ranking records Munich Re at USD 40.5bn of gross premiums written at year-end 2023 and USD 36.2bn of reinsurance revenue at year-end 2024, a 1.1% revenue decline; under the earlier IFRS 4 accounting, Munich Re had topped the year-end 2022 edition.[4](https://web.ambest.com/docs/default-source/events/best's-market-segment-report---worlds-top-50-largest-reinsurers.pdf?sfvrsn=b92f3c4e_1)
**Comparability caveat.** AM Best calculates that the European Big Four's average 2024 combined ratio of 86.4% was broadly in line with the US and Bermuda composite (89.5%) and Lloyd's (86.9%), but that the European figures benefit from discounting effects of roughly eight percentage points that the other composites do not have; on a like-for-like basis the European reinsurers' underwriting margin would be materially narrower. Lloyd's 2024 return on equity of 21.2% was materially higher than the European average.[5](https://web.ambest.com/docs/default-source/ambal-rating-services/market-segment-report--the-european-big-four-reinsurers-maintain-their-risk-appetites.pdf?sfvrsn=642d80ce_1)
Munich Re's own property-casualty combined ratio series through the current hard market was 83.2% in 2022, 85.2% in 2023, 77.3% in 2024, and 73.5% in 2025, with Global Specialty Insurance at 92.5%, 85.4%, 93.6%, and 85.9% over the same years.[2](https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/investor-relations/munich-re-equity-story.pdf/_jcr_content/renditions/original.media_file.download_attachment.file/munich-re-equity-story.pdf)
## Natural catastrophes and the hard market
Gallagher Re estimates that private and public insurance entities covered US$154bn of losses from natural perils in 2024, up from US$123bn as originally reported for 2023, and puts the annual average since 2017 at US$146bn, a "new normal" approaching US$150bn per annum.[6](https://www.ajg.com/gallagherre/-/media/files/gallagher/gallagherre/news-and-insights/2025/april/gallagherre-reinsurance-market-report-2024.pdf) Despite elevated US catastrophe activity, the big four European reinsurers, Munich Re, Swiss Re, Hannover Re, and SCOR, all reported 2024 natural catastrophe losses below their annual budgets.[6](https://www.ajg.com/gallagherre/-/media/files/gallagher/gallagherre/news-and-insights/2025/april/gallagherre-reinsurance-market-report-2024.pdf) Across the reported subset of reinsurers, the impact of natural catastrophes on the combined ratio rose 0.6 percentage points to 7.6% in 2024, still below the normalized catastrophe loss level of 9.0%.[6](https://www.ajg.com/gallagherre/-/media/files/gallagher/gallagherre/news-and-insights/2025/april/gallagherre-reinsurance-market-report-2024.pdf)
## References
1. [Two Chapters on early history of the Munich Reinsurance Company (LMU Munich working paper)](https://ideas.repec.org/p/lmu/muenec/11336.html)
2. [Munich Re Equity Story, Investor Relations](https://www.munichre.com/content/dam/munichre/contentlounge/website-pieces/documents/investor-relations/munich-re-equity-story.pdf/_jcr_content/renditions/original.media_file.download_attachment.file/munich-re-equity-story.pdf)
3. [Munich Re Group Annual Report 2025](https://www.munichre.com/content/dam/munichre/mrwebsiteslaunches/2025-annual-report/MunichRe-Group-Annual-Report-2025-en.pdf/_jcr_content/renditions/original./MunichRe-Group-Annual-Report-2025-en.pdf)
4. [AM Best: World's 50 Largest Reinsurers](https://web.ambest.com/docs/default-source/events/best's-market-segment-report---worlds-top-50-largest-reinsurers.pdf?sfvrsn=b92f3c4e_1)
5. [AM Best Market Segment Report: The European "Big Four" Reinsurers Maintain Their Risk Appetites](https://web.ambest.com/docs/default-source/ambal-rating-services/market-segment-report--the-european-big-four-reinsurers-maintain-their-risk-appetites.pdf?sfvrsn=642d80ce_1)
6. [Gallagher Re Reinsurance Market Report 2024](https://www.ajg.com/gallagherre/-/media/files/gallagher/gallagherre/news-and-insights/2025/april/gallagherre-reinsurance-market-report-2024.pdf)
---
*Topic: Encyclopedia › Society and history › Economics and business › Finance › Insurance*
*Initially written Sep 17, 2026 · Reviewed: Oct 10, 2026 · Edited: Oct 10, 2026; Oct 11, 2026 · Last review: Oct 10, 2026*
*Copyright 2026 EdgeChat AI, a subsidiary of Biostate AI.*
License: Edgepedia Community License 1.0, https://www.edgepedia.org/edgepedia/license