Munich Re Sets Ambition 2030 Strategy Targeting €6.3 Billion Profit and 18% ROE

Munich Re Group is concluding its Ambition 2025 strategy on a strong note, having substantially improved earnings and surpassed financial targets. The company reported a 2020 net result of €1.2 billion and expects to achieve €6.0 billion by 2025. Key success factors include performance focus, diversified growth, and disciplined capital management. Munich Re outpaced its peers with a 25 percentage point higher average annual increase in net results from 2020 to 2024, alongside a total shareholder return of 171%. Building on this, Munich Re’s new Ambition 2030 strategy revolves around three pillars: Outpeak, Outpace, and Outperform. The Outpeak pillar emphasizes superior underwriting and investment decisions, aiming to increase the contribution of Life & Health (L&H) reinsurance, Global Specialty Insurance, and ERGO to approximately 60% of net results by 2030. The Outpace component focuses on enhancing organizational speed, efficiency, and agility, leveraging AI-driven expertise and targeting €600 million in annual cost savings by 2030. Outperform sets an ambitious return on equity (RoE) target exceeding 18%, with an aim to enhance value for shareholders, clients, employees, and societies. The group’s diversified business model includes ERGO, Property & Casualty (P&C) reinsurance, L&H reinsurance, and Global Specialty Insurance, supported by a high-return investment portfolio. Munich Re targets a profit of €6.3 billion for 2026 and expected group insurance revenue of €64 billion. ERGO is expected to contribute a RoE of over 18% and insurance revenue of €26–30 billion by 2030. ERGO Germany plans sustainable profitable growth focusing on product enhancement, broker sales, and digital transformation including AI integration. ERGO International aims to strengthen its market share in Europe, Asia, and the US SMB segment via NEXT Insurance, projecting insurance revenue growth to €9–11 billion by 2030 and improved combined ratios. Munich Re’s reinsurance business targets a RoE above 18%, with P&C reinsurance focusing on maintaining high profitability amid competitive conditions and natural catastrophe coverage demand. L&H reinsurance intends to grow by expanding product offerings and enhancing partnerships in longevity annuities and life portfolio transactions. The Global Specialty Insurance segment plans geographic and product range expansions with revenue expected to reach €12–14 billion by 2030. The investment business aims to increase return on investment to 3.4–3.8% by 2030 through active management and alternative investments, including AI-enhanced processes via its asset manager MEAG. Munich Re has committed to net zero greenhouse gas emissions by 2050 across its insurance and investment portfolios and will accelerate its coal investment phase-out to 2030. Diversity, equity, and inclusion efforts continue globally with new localized targets. As a leading global reinsurer and insurer since 1880, Munich Re emphasizes risk expertise and innovative covers for emerging risks like cyber and AI. Despite optimistic forward-looking guidance, the group acknowledges risks and uncertainties that may affect future performance.