The Munich Re has raised its dividend and announced a shallow share buyback program.
The shareholders are expected to receive a dividend of EUR 20.00 per share for the past financial year 2024, as the reinsurer announced. That was 5.00 euros more than in the previous year and more than analysts in consensus at 16.50 euros per piece.
In addition, the DAX group plans to buy its own stocks worth a maximum of 2.0 billion euros in the 2026 assembly in the period from April 30, 2025. The bought stocks are to be collected.
The group thus releases a total of 4.6 billion euros, a year earlier the capital return was 3.5 billion euros.
The Munich re submits figures for 2024 on Wednesday. She has promised a profit increase to 4.5 billion euros.
Munich Re confirms outlook after a significant increase in profits
The Munich RE significantly increased its profit last year despite a higher damage burden and exceeded its profit goal. The DAX group confirmed the outlook for the year as a whole.
According to the announcement, the group profit increased to 5.67 billion euros from 4.6 billion in the previous year. The reinsurer himself had recently made a result of over 5 billion euros. Analysts had expected 5.7 billion in a consensus published by the company itself.
For the current year, the group still promises a profit of 6 billion euros.
Munich Re continues to record the record course – dividend surprisingly high
Investors were particularly pleased about the Dividend plans of the Munich Re on Wednesday. With 20 euros per share for 2024, the distribution is surprisingly high. The reinsurer’s share price also goes up strongly for the share price: with a good 556 euros at the top, the record rally continued. In Xetra trading, the paper is now currently 4.63 percent firmer at 551.00 euros.
Despite two destructive hurricanes, Munich Re had significantly increased the profit last year. The devastating forest fires in California are expected to cost the group a billion dollar. According to Jefferies’s analysts, this load can be manageable. CEO Joachim Wenning also states at his goal to drive the profit up to six billion euros this year.
The share price is also likely to promote a share buyback program with a volume of up to two billion euros. The group wants to spend a total of 4.6 billion euros on dividends and share buyback.
The dividend increasing from 15 to 20 euros per share and the increase in stock returns are the “great news”, commented analyst Kamran Hossain from JPmorgan. The dividend is even higher than the already increased expectations, wrote Hardcastle from UBS.
The distributions are surprisingly generous, wrote analyst Werner Schirmer from LBBW. In the competitive comparison, Munich Re is almost fairly rated with a view to substance value and profit, but highly measured on the dividend. He therefore advises the “holding” of the shares, whereby the price target of 600 euros still leaves some room for improvement.
Dow Jones/DPA-AFX
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