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Munich Re: My Favorite, More Conservative Reinsurer


  • I wrote about Allianz, the largest insurance business on earth. Today, I'm taking on the largest reinsurance business on the planet - Münchener Rückversicherungs-Gesellschaft.
  • The company is internationally known as Munich Re and has sales of over €60B, with a market cap of €32.2B.
  • The recent market action has driven this company down significantly, with yields now over 4.5%.
  • Learn why I consider Munich Re to be a "BUY" here.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT on Alpha. Learn More »

Author's Note: This is a reduced version of an article published on iREIT on Alpha on the 22nd of March.

Insurance concept - burnt model house background

Jerome Maurice/iStock via Getty Images

It's not that only pure-play Reinsurance businesses offer reinsurance. Many normal insurance businesses offer this as

The company discussed in this article is only one potential investment in the sector. Members of iREIT on Alpha get access to investment ideas with upsides that I view as significantly higher/better than this one. Consider subscribing and learning more here.

This article was written by

Wolf Report profile picture

Wolf Report is a senior analyst and private portfolio manager with over 10 years generating value ideas in European and North American markets.

He is a contributing author for the investing group iREIT on Alpha where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MURGY, HVRRY, ALIZY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment, and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. The author's intent is never to give personalized financial advice, and publications are to be viewed as research and company interest pieces. The author owns the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in the articles. The author owns the Canadian tickers of all Canadian stocks written about.

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Comments (20)

What is the x-dividend date and the actual dividend payment in dollars? I have found several different answers to both questions. Thanks
Ako Ake profile picture
I find Munich Re a very boring player in the R/I market and also as an investment. Due to its conservative policy , their investment income is low compared to its peers. Personally albeit a “ different animal” I much prefer Berkshire Hathaway due to its strong investment portfolio, large piles of cash ( ready for opportunistic investments) and very sound underwriting without depending on retrocessions, as they retain all that they reinsurer. The prices of retrocessions have increased significantly due to the hard market, and these higher retro costs reduce other peers margins. Finally, Berkshire Hathaway due to not depending in retros can ( and are) accept 3 & 5 year R/I contracts capitalising on the current hard market. Many brokers are recommending to their clients multi-year contracts.
I’m not a fan of Munich Re and like/own Everest and RenRe much better than the former entity. The problem with Munich is that it’s so big that it is essentially a passive proxy for the whole p/c industry. In other words, it is next to impossible for Munich to differentiate itself by astute underwriting. Moreover, many ”smart” reinsurers, e.g., Everest and Axis, are reducing and re-rating their catastrophe reinsurance business while Munich is actually increasing its exposure to this inherently under-priced exposure. I’d avoid Munich Re and focus on the smaller players in this sector.
According to the VAERS and DMED data bases, the COVID "vaccines" are causing a lot of deaths, injuries and disabilities. Might not this adversely affect the reserves and earnings of insurers and re-insurers?
good grief. I smell shameless misinformation.
Vaccines only cause deaths, injuries and disabilities
in the imaginations of liars, extremists and opportunists.
Azred profile picture
@hannytuc777 Maybe why the real reports aren’t being released? Maybe…..
Bluegrassriver profile picture
@1504661 And idiots
I was like a kid in a candy store 4 weeks ago when the EU/ world was coming to an end and everyone was freakin out. Unbelievable bargain prices of MURGY for a few days when I loaded up. Also loaded UBS, Zurich and Allianz. My fingers were jittery and shaky with absolute glee pressing the buy button with low ball limit orders . They have such a good business model: jack up premiums if anyone makes a claim and never pay full claims due to technicalities
What are the tax implications for American investors. I own no German stocks, so I have to ask.
gman1253 profile picture
@G-man$$ I believe the German tax on dividends is 15% ... no exclusion for IRAs.
gman1253 profile picture
@G-man$$ and they pay the divvy ANNUALLY like many European firms.
aida2003 profile picture
@G-man$$ you can google a little bit ;-). Here's a little for you when I googled about ALIZY after skimming Wolf's article about it: www.allianz.com/...

ALIZY is an ADR share so the dividend in EUR would be different meaning don't expect 10.80 euros per ADR. Also, it's an annual dividend.

It's a similar story with Munich reinsurance company.

So, with German dividends, the dividend might seem nice, but less than 75% of it is reinvested into extra shares if you choose to reinvest. You claim a foreign tax credit on your 1040 form for the other 26% or so.
What about exposure to Russia/Ukraine , oil/gas.....
Wolf Report profile picture
@sailingawa Not in any way relevant/large for this company. Less than 1%.

Thanks for commenting! :)
The full name just rolls off the tongue.
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