Munich Re generates record half-year profit of almost €4bn

• Q2 net result of €2.2bn; annual guidance unchanged at €6.3bn
• Result drivers in Q2: good operating performance by all business segments, very low major-loss expenditure in property-casualty reinsurance (combined ratio: 68.9%) and a very strong investment result (return on investment: 5.5%)
• Life and health reinsurance posts a total technical result of €528m in Q2; largest ever longevity transaction completed in H1
• Global Specialty Insurance reports good combined ratio (88.9%), with growth opportunities in the US real estate and professional liability sectors and in surety insurance in Europe
• ERGO contributes profit of €321m in Q2 – far outperforming pro rata guidance
• July renewals focus on profitability and portfolio optimisation: decrease of 5.5% in risk-adjusted pricing and 9.1% in volume with largely stable terms and conditions

Summary of Q2 figures

Munich Re generated a net result of €2,211m (2,085m) in the second quarter of 2026 and €3,925m (3,178m) in the first half of the year, bolstered by very low major-loss expenditure in property-casualty reinsurance together with a very strong investment result.

Q2 insurance revenue from insurance contracts issued rose marginally year on year to €14,939m (14,775m). Adjusted for adverse currency translation effects, insurance revenue also increased in H1 to €30,853m; unadjusted for these effects, it fell to €29,957m (30,586m).

Following an exceptionally high result in the same quarter of the previous year, the total technical result decreased to €2,545m (3,035m). The currency result improved to −€2m (−602m). Currency losses resulting from the weak US dollar had particularly impacted the previous year’s figure. The operating result was €2,795m (2,917m) and the effective tax rate was 19,0% (27.2%).

Equity was slightly higher at the reporting date (€33,727m) than at the start of the year (€33,421m). The solvency ratio¹ stood at 304% (31 December 2025: 298%), well above the Solvency II minimum level of 200%.

The annualised return on equity (RoE) amounted to 25.5% (25.5%) in Q2 2026 and to 23.0% (19.7%) in H1.

Reinsurance: Result of €1,890m 

The reinsurance field of business contributed €1,890m (1,834m) to the Group’s net result in Q2; the H1 result was €3,369m (2,687m). Insurance revenue from insurance contracts issued amounted to €9,442m (9,629m) in Q2. The total technical result decreased to €1,965m (2,418m) and the operating result to €2,386m (2,561m). 

For the property-casualty reinsurance segment, the net result amounted to €1,252m (1,193m). Insurance revenue from insurance contracts issued dropped to €4,044m (4,513m). The combined ratio was 68.9% (61.0%) of net insurance revenue.

In Q2, Munich Re reported major losses amounting to €191m (−87m) after retrocession and before tax. The figure reported includes run-off profits and losses for major claims from previous years. Q2 2025 had benefited from low major losses and released claims reserves from previous years to an even greater extent than Q2 2026. Major-loss expenditure corresponded to 4.9% (−2.0%) of net insurance revenue, far below the expected value of 18%. Major-loss expenditure from natural catastrophes amounted to €54m (20m); man-made major losses stood at €137m (−107m). The major-loss figures above take account of the effects from discounting and risk adjustment. 

Renewals at 1 July 2026

In the reinsurance renewals at 1 July 2026, the business written was primarily in North America, South America, Australia, and with global clients. The volume of business written fell to €2.9bn (−9.1%). Munich Re systematically opted not to renew or write business that did not meet expectations with respect to the required prices or terms and conditions. Falling prices also reduced the volume. Owing to largely stable contractual terms and conditions, the quality of the portfolio remains high.

Overall, prices showed a downward trend. Nevertheless, it was mostly possible to compensate for higher loss cost estimates in some areas, which were primarily attributable to inflation or other loss trends. Overall, the price level for Munich Re’s portfolio remains good, despite a 5.5% decline. These figures are, as always, risk-adjusted. Accordingly, changes in pricing based on revised risk and loss expectations are factored in. 

Looking ahead to the upcoming round of renewals in January, Munich Re expects a market environment in which the sustained favourable price levels as well as improved terms and conditions can be largely upheld despite the high level of competition. As a broadly diversified insurance group, and owing to the steady expansion of less cyclical and less volatile business segments in recent years, Munich Re is also strategically very well positioned for softer market phases in property-casualty reinsurance. 

In Q2, life and health reinsurance generated a total technical result of €528m (305m). The net result in this segment increased to €489m (344m). Insurance revenue from insurance contracts issued amounted to €3,346m (3,094m). This growth was driven in particular by the year-on-year expansion of major transaction business involving in-force life portfolios. In the first half of 2026, the largest single transaction to date in the longevity sector was executed, involving pension liabilities amounting to €4bn. 

The Global Specialty Insurance (GSI) segment posted a net result of €149m (296m). Insurance revenue from insurance contracts issued amounted to €2,053m (2,022m). Adjusted for currency translation effects, insurance revenue in H1 rose by around 3% year on year. The combined ratio increased to 88.9% (77.9%) of net insurance revenue after the same quarter in the previous year had benefited from particularly low major-loss expenditure. New business opportunities for specialty lines are currently emerging, for example, in the US real estate and professional liability sectors, and in surety insurance in Europe. In the strategic growth field of artificial intelligence, specialty insurer HSB, which is part of GSI, launched a new liability insurance solution in the first half of the year that protects businesses from lawsuits resulting from the use of AI technologies.

ERGO: Result of €321m

In its ERGO field of business, Munich Re generated a considerably higher Q2 result year on year of €321m (251m); the H1 result amounted to €556m (492m). This increase was largely driven by a very high investment result. Insurance revenue from insurance contracts issued rose substantially to €5,497m (5,146m) in Q2 and to €11,168m (10,706m) in H1. In addition to organic growth in Germany and international markets, inclusion of ERGO NEXT in the reporting for the first time contributed to the increase.

The ERGO Germany segment significantly improved its result to €235m (155m). This is primarily due to a higher contribution from the investment result generated by Property-casualty Germany, in particular following the strong performance of private equity investments. Compared to the previous year, the segment’s Q2 insurance service result saw a marginal decline. Technical provisions were further strengthened in the property-casualty business. In the Life and Health Germany business, the pro rata release of the contractual service margin and the insurance service result from short-term health and travel insurance were in line with expectations. 

ERGO International generated a result of €86m (96m), to which its major European companies contributed substantially. The insurance service result was in line with expectations. At Life and Health International, the release of the contractual service margin remained stable and was mainly driven by health business in Spain and by life and health business in Belgium. The international property-casualty business recorded a slightly higher Q2 insurance service result year on year.

The total technical result for the ERGO field of business was €581m (617m); the operating result rose to €409m (357m). The combined ratio for ERGO Property-casualty Germany stood at 90.2% (89.1%) in Q2; in H1, it fell slightly to 88.4% (88.9%), placing it below the target level for the full year. In the ERGO International segment, the combined ratio was 89.9% (89.5%) in Q2 and 89.7% (89.3%) in H1.

Investments: Investment result of €3,159m

Munich Re’s investment result increased to €3,159m (2,187m) in Q2. Regular income from investments climbed to €2,315m (2,222m). The balance from write-ups and write-downs was −€44m (−28m), with the balance from gains and losses on the disposal of investments coming to −€84m (76m). The change in fair value saw an improvement to €1,174m (84m). The higher investment result compared to Q2 2025 was primarily attributable to significantly higher fair values. Our equity portfolio in particular benefited from rising stock market prices. This was offset by the results from hedging derivatives. As part of ongoing portfolio optimisation, slight losses were also realised on the sale of fixed-interest securities.

Overall, the Q2 investment result represents a return of 5.5% on the average market value of the portfolio. The running yield was 4.0% and the yield on reinvestment was 4.3%. As at 30 June 2026, the equity-backing ratio including equity-linked derivatives amounted to 3.6% (3.1% as at 31 December 2025). The carrying amount of the investment portfolio as at 30 June 2026 was €225,228m (222,747m).

Outlook for 2026: Annual guidance unchanged at €6.3bn 

Anticipating sustained advantageous business opportunities in the coming quarters, Munich Re is still aiming to generate a net result of €6.3bn for the 2026 financial year. Based on business development, insurance revenue in reinsurance is now expected to total €38bn (previously €40bn). The Group’s insurance revenue is therefore anticipated to be €62bn (previously €64bn). The other expectations communicated for 2026 in Munich Re’s Group Annual Report 2025 remain unchanged.

Please note that all figures are rounded values. As usual, all forecasts and targets are subject to increased uncertainties stemming from geopolitical and macroeconomic developments, to major losses remaining within normal bounds, and to the income statement not being impacted by severe fluctuations in the currency or capital markets, significant changes in the tax environment, or other one-off effects.